Eastern Motors Economy

This economic failure we are currently engulfed in cannot be completely blamed on the events that occurred in the past few years, though there is evidence that economic policies our government in the past 8 years are partially to blame. This economic downturn took its roots in late 2000 when the economy was booming like never before. At the end of Bill Clintons presidency and through the first year or so of George Bush’s presidency the economy saw enormous growth and people were spending like never before. It seemed as though the economy would never slow down, but as we all know it did. After the tragic events on September eleventh the economy saw a sharp fall as all of America was in shock. Meanwhile the FED was fighting this downturn furiously, by lowering interest rates to encourage people to spend and take out loans. Not only did these actions encourage people to spend, in encouraged them to spend money…that just wasn’t there. People were spending money they had no business spending, banks were giving loans to people who had no business having loans and people were buying houses they had no business buying. For example consider a car company located all up and down the east coast called Eastern Motors™ they are a company that took of around 2004 and there paraphrased policy consisted of this; if you have a credit card regardless of how bad your credit is and how much money you actually have, you can buy one of their cars. These were not just any cars though, these were Porsches, Lamborghinis, Bentleys, Ferraris, Aston Martins (yes even for Harrison) and any other exotic you can think of. So essentially someone who could be flipping burgers at McDonalds could at the same time own a Lamborghini that he can’t even pay the insurance for. People seriously thought they were living the “American Dream� but this time it really was, only a dream.
This was only a minor example of unqualified consumption by the American people though, the big crisis occurred on the housing market. Now that people were bringing in more money, they though, why not buy a bigger house or a boat or any other large dispensable item of great value, so what did they do, they turned to the bank. At this point in time, banks were handing out loans like candy, a lot like Easter Motors™. This put both sides in worlds of trouble, on one side the people who took out the loans soon realized they could not pay back the loans and were essentially trapped in their own debt. On the other side banks soon realized that the money due for the thousands of loans they gave to people was not being repaid so intern, they were broke. When people realized that the banks had no money they ran to the banks to withdraw all of their money they had stored there only to be told that it no longer existed and that the bank was going out of business leaving people broke and homeless often times. This left America clueless of what to do next, like a deer in the head lights they stopped watching as one by one major banks started falling off the map. This is not where the tragedies end though. Americans would soon find unemployment rates skyrocketing like never before and they could nothing but watch as the FED adopted, what they thought to be more aggressive policies in the right direction but some of its members would soon realize that action was not always the best action. What I mean by this is the way in which the FED was trying to artificially stimulate the economy while it is clear to those on the outside looking in that the best path of action is seemingly waiting for the economy to fix itself. Secondly we are currently being lead by a president whose platform is deteriorated under his own feet, while he is constantly planning and planning to throw money at the problem until it is “FIXED�. But all this talk and no action has gotten him into the situation Bush was in for almost his entire presidency. Obama is currently loosing his support from the American people by the masses. MSNBC took a pole last week asking the American people to grade Obama on his performance using the letter grading scale. When the results were tallied people were stunned approximately 47 percent of Americans who participated gave Obama an F while around 35 percent of fearless supporters or just plain uninformed voters gave him an A, leaving the rest scattered through out.
No you may be a little confused at this point due to the fact that I had previously said that what was most likely best for the American economy was no action at all and how that seemed to be what most Americans supported but yet I just stated that Obama was ridiculed for doing a lot of talking and taking no action. What this proves is that the American people clearly have no idea what is best at this point but the reason I believe he received so many F’s is because though the American people don’t know what to do in this situation, but they assume that the president does. The issue is people have lost faith in the banks and the FED and now are looking towards the Government to save them and nothing is happening. It is a said day in America when the president is constantly on TV and the news is on everyday and yet the most informative TV show dealing with the economy is a South Park episode comparing the Economic down turn to the crucifixion of Jesus Christ.
With the economy still plummeting with so sign of stopping, the FED is still attempting to but a bottom under this drop while the American people are left to question what the future of the American economy will hold and weather or not their children will grow up in the same type of country they did when they were young.