Too Optimistic

I've been telling people for long time this financial issue is based on real issues. Those issues are going to cause longer term problems and won't be fixed by the typical government band aid. On Monday two weeks ago when the Dow lost 750+ points and people freak out I said don't freak out too much, it's going to go much lower. I thought the Dow would go to about 8,500 and stayed around there for while. Then it would start to slowly recover.

Now I'm beginning to think 8,500 might have been too optimistic. I think long term things will be fine. A lot of pretend paper wealth is now gone. Unfortunately there are a few people who bought houses doing the crazy boom that have probably 10 years or more to recover their paper losses.

Short term though things will be tough. Some people can't afford paper losses now. They are near retirement, paying for college, or need to sell their house because their moving. That's tough.

I do wish the government would stop trying band aids for corporations. I really wish they'd stop borrowing from the future. The two big spending presidents in history, FDR and Ronald Reagan spent big for big reasons. Recovering from the Great Depression and winning World War 2 was a pretty big deal. Reagan had to recover from whatever the fuck we did to the economy in the 70s. He also won that Cold War thing, which despite what the liberals want you to believe was actually a real threat. Borrowing from the future so you can give everyone $600 isn't always a good idea.