We are cranking up the election season mumbo jumbo here in the U.S. The rhetoric, depending upon which week it is, is on the economy,……. So, I’ve been trying to watch the economy. I have just returned to the middle midwest from the upper midwest and found highway construction in abundance. Yes, there a lot of resurfacing. But, I’m also talking rip it up, tear it out and re-lay it construction. There are also new roads, ramps and bridges where none have gone before. It’s NO question it takes a lot of money, or where the money is coming from, but where is it going, and why has it NOT helped the economy more than it has?
This led me to think back to government sponsored stimulus’. My eldest son and I discussed the banking baleout plan just before its initiation. He thought giving the money directly to the people would be best, I said that would create significant inflation and devaluation. I thought giving directly to the banks, who would/should then write down their mortgages, thereby directly benefiting mortgagee’s.
What I watched was surprising. The banks asked for government help, took the money and paid off their Foreign Mortgagors and Derivative Holders, then they (the American Banks) turned around and kicked bunches of people out of their homes (which they would have done without government monies). Government plans, programs, and assistance came to little and to late for the vast majority of the tens of thousands of newly homeless, homeowners.
All of this was coming to mind while driving the 13 hour trip back home. And then, out of the blue, popped this parable that I’ve read so often; “The king wanted to settle accounts and he called his servant that owed the king money, the servant begged forgiveness. The king forgave all the debt, the servant left, but then he demanded that everyone that owed him money to pay it back, those that couldn’t were (ripped out of their homes and) thrown in jail until they could pay. The king hearing what the servant did, voided the forgiveness and threw the servant in jail. (paraphrase of Mt 18:23+)
It seems to me that the taxpayers have been hit twice; once for the money we gave the government to help the banks, and second for the money for the plans and programs for mortgagee’s that the banks foreclosed upon. Why is the economy NOT rebounding, it appears that after righting themselves, banks now don’t want to loan money.
I think we can safely say that we can be identified as the king, and we should throw the banks in jail!! Oh, yeah, and our AGENT, the government isn’t without fault either.