Unreal World, The Beat Goes On

The markets buoyancy is amazing to me.

* Foreclosures hit a record high for the 9th straight month with 4 million homeowners either 3 months behind in payments or in foreclosure. The government backs more than 50% of the $10 trillion in mortgages through FRE and FNM. Also it backs VA and FHA loans; covering 99% of the mortgages. I think the housing market is in jeopard of recovering in 2010. I see the price of homes continuing to fall. And 20% of the economy is comprised of housing and related business.

* The government sponsored Pension Benefit Guarantee Corporation could need up to $202B. It covers 44 million of private sector workers. The demand for federal financial help is expanding in many areas they control. The numbers change frequently.

Also, California is projecting a $20.7 billion budget gap for 2010, and it could continue at a pace of $20 billion a year through 2015 if the state does not fix this by living within their means. Where are the realistic forward thinkers who look beyond the end of their noses when putting these budgets together?

I believe that given all the disruption that is occurring from changing the recommendations on when to have mammograms, trying the terrorists in New York versus a military court, and the myriad of actions that are reinforcing us as a debtor nation, is for our benefit, individually and collectively, to become less complacent and more self-reliant. This president appears to be planning on a one term only given his words and actions. His intention is to make as many changes as possible. The louder the resistance, the more the resolute he is on implementing his beliefs and agendas. Change is good and the human reaction is to resist change. Yet the changes I see happening to do not encourage us to be independent and resourceful. Change takes time, determined by the perceived magnitude of it. For example, the healthcare change that is needed cannot be shoved through congress, unread by those who vote on it, and expect it to be a change that benefits the highest good. Given that it accounts for close to 20% of the economy, we need to go through the process of taking the time to read it, discuss it, and compromise or collaborate on the disagreements. Many inputs are better than a only a few who look at it one way. We need all inputs to round out the view to see it the 'best' way. We can't afford not to, especially now with the magnitude of our debt. We are diminishing our ability to print money and keep interest rates at zero if there is another financial earthquake of our making.

Given my background in accounting and economics, you can see I am conservative when it comes to the financial arena. I have always disagreed with the way our government spends beyond its means. I voted for Perot in protest. I'm looking forward to seeing a qualified 'independent' decides to run for president in 2012. I am taking action in whatever way makes sense to me to move the energy of this country toward being fiscally responsible. It looks impossible, yet I believe anything is possible. :)