Economy 1st trimester 2009

Whew, what a mess we've put ourselves in. Greed, buy now, spend, spend, spend, it's capitalism out of control.

I think it's amazing to see that so many people are surprised that the economies around the world are spiraling out of control, deficits are piling up, and people are left scratching their heads. When you pay 1 million dollars for a house that is worth only $300-400K you shouldn't be surprised that the smallest change in house values or downturn in the economy can put an end to your inflated lifestyle and put you in a very precarious position.

I am not surprised to see that the common investor or home buyer, got caught up in the economy and was left with a mortgage on a home that wasn't worth as much as he thought. However, it is beyond my comprehension that Fund Managers, Governments and a lot of people who should really have known better got caught with commercial paper that was of very low quality. The real estate market in the U.S. was a disaster waiting to happen, for institutional investors to have taught otherwise is absolutely unimaginable.

I am very curious to see how all of this will turnout in the end, the economies are slowly starting to pick up once again, and with the assistance of government intervention and Billions and Billions of dollars put into the economy, optimism is slowly returning. However, their will be a HUGE bill to pay for this little mess that the global economy as put us in, hopefully we will be able to go forward and, I hope, be much more fiscally responsible that we have been in the past.