What are these economist thinking?

They keep pouring our tax dollars into the credit market so that banks will be able to loan more money. Holly shit!!!!! How in the hell will giving loans to people who can't pay off their current loans help anything??? That's like giving a crack addict more crack to cure him. Sure the withdrawal systems will disappear... until he needs his next hit.

OMG! Financial markets WAKE UP! Go to the heart of the problem. Do things that may actually help. Mandate a ceiling on the interest credit card companies can charge. The short term federal rate is at 1.5% so there should be plenty of profit at 8%. That way people have an fair chance of reducing their debt and can afford to live at the same time. Also, credit card companies will be a little more picky about who they give credit to. At the 24% they charge some people now they can afford to take a shotgun approach. Throw credit at everyone and if most pay they clear some major profit.

Next, realize the housing market is screwed! Government can't fix it. A lot of people will not pay for a house when they owe $700,000.00 and they can buy the same house across the street for $400,00.00. You can't make them. Renegotiate their loans? Most loans are already at a low rate. Extending a loan to lower the payment will not help people who need to sell and will only reinforce the feeling that people are stuck in their house forever with no hope.

The only reason this didn't happen sooner is because people kept taking equity out of their house to pay off mounting bills. When the housing bubble burst that trick went away. All the government can do now is make sure the financial institutions work with people in an ethical and compassionate way and let people work their way out of thier problem.

I think our generation is going to finally figure out the difference between want and need.