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Economic Crisis
September 26, 2008
John Barfield
Economic Crisis
The economic “crisis" is not that complicated. The stock market always wants positive press to continue its trading, if not, speculators sell. Wow, what a surprise. Meanwhile the businesses that gave bad mortgages, and they don’t want to take the loss. A $10,000 loss on a house by a lender adds up over thousands of loans. But they can’t afford to wait for the capital to come back. They could liquidate much of these by selling at a cheaper price (free market go figure!), but they refuse to do this because the profit possibilities are amazing. I say sell them at a reduced price, get some capital, and quit whining. That is EXACTLY what the government would expect of the small businessman. Also, LOCAL (not foreign) investors would have a field day.
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