|
Hi everyone, I'm new to these forums and I know the topic of the day is nhc(national health care) but I want to put my theory about the reason for the economic crisis before you and you tell me, have I got it right or, have I lost my mind?
I have not heard anyone in the mainstream media (broadcast television, newspaper) or the "alternative media" (cable television, radio, internet) propose this idea of how we wound up in this financial crisis and the resultant jobless recovery so here is what I think.... please bare with me.
According to the popular theories the crisis was started in the housing industry in late 2007, particularly when multitudes of people defaulted on their mortgages and we were told about "toxic assets" many of the conservative pundits blamed democrat policy relating to the fair housing act enacted nearly forty years ago, "Poor people buying homes they could not afford" (credit Rush Limbaugh, Sean Hannity, Mark Levin and others). They also blamed corruption at freddie mac and fannie mae. Some of this is true but it's not complete and leaves out the real culprits, illegal labor and market manipulation.
Back in late '05 and early '06 reports were coming out about builders across the country who were giving away big screen televisions and swimming pools as incentives for people to purchase homes that were not selling. The market became over built and the prices began to fall, a market correction was commencing.
At the same time, many people involved in the real estate industry were implementing a strategy called "house flipping" where if you purchased a new home in the right area and sat on it for a couple of years you stood to make handsome profits because of the skyrocketing prices. Enter the adjustable rate, interest only mortgages, what better way to maximize profit than to minimize expenditures? This strategy works like a charm as long as prices and demand continue to increase.
Now, poor people buying homes they could not afford. If Mary, living in the projects went down to the bank and got herself a brand new home, why wouldn't her neighbor Bob do the same thing? Why are the projects still full of people? The fact is that there is a waiting list for people to get into the projects as exemplified by the woman (Henrietta something-or-another) in Tampa who, at an Obama campaign rally asked senator Obama for a place to live because she was living in her car and the housing authority had her on a two year waiting list. My point is; if the demand for new homes was coming from poor people it would be impossible to over build the market. Once, and only once, I heard Glenn Beck on his radio show mention the discoveries his researchers were making while investigating the mortgage debacle, the majority of foreclosures were happening to people who had mortgages on multiple properties. Therefore it was not democrat policy nor poor people who caused this crisis but rather real estate investors, lending institutions and manipulation of of the market which started the domino effect but, they had help.
So, how did the market get over built, it's really simple. Conservatives claim that tax breaks for businesses create jobs. That is true but it leaves out one big step. Tax breaks for businesses creates larger profit margins. There is no requirement that any business receiving a tax break create any jobs. Industrious business owners use this increased profit margin to expand their business thereby creating jobs, not so industrious business owners may use the increase to buy a new boat or spend an extra two weeks on vacation or what ever, which also helps create or maintain jobs in other industries. As we all know, the construction is inundated with illegal labor. Hiring cheap illegal labor does the same thing as tax breaks, it increases profits thereby allowing those industrious builders and contractors to hire more illegals, expand their business and build more homes and that is how the the housing market was over built.
Please notice that I have not used the word immigration, that's because I know that most illegals do not come here to become threads in the fabric of our society. I have worked in the construction industry most of my life, I'm forty six years old so I have about twenty years or so under my belt in the industry, I've also been an automotive mechanic and held a few other jobs. I have worked shoulder to shoulder with illegal labor, sometimes making less than those without the right to even be in this country but that's a non-issue for me. I have heard from the burro's mouth so-to-speak that the reason they come is because they can earn ten times as much here as the can in their home country. Now think about that, they come here and work for say ten years, they live cheap by sharing a two bed room mobile home with six or seven of their amigos, they return home with what amounts to one hundred years of saved income. I don't hold anything against the illegals, hell if I could go somewhere and do the same thing don't think I wouldn't. My issue is with their employers, my fellow Americans and our government which refuses to enforce our labor laws concerning the illegal hiring practices of such employers. If I had my way, we'd use the same tools we use in the war on drugs. Since the employers of illegals are making gains through an illegal act, much like the common drug dealer, shouldn't they be subject to seizure, forfeiture and lengthy prison sentences as well? Let's treat criminals like criminals! I don't suffer from delusions that this will ever happen, not as long as municipal projects such as road and school construction are being awarded to such contractors. Think about that, your tax dollars providing actual paychecks to illegal labor not to mention social services.
Don't tell me that we need these people because Americans are lazy (credit former president George W. Bush) labor statistics show otherwise, our work force is working harder, longer and producing more than we have since 1929! Don't tell me that illegals labor is keeping prices down, the previously mentioned "skyrocketing housing prices" would prove you wrong as would the current cost of food at the grocery store. The only thing being kept down due to illegal labor is the cost of labor.
I really don't know what can be done that has not already been tried. Our federal government is unresponsive and our major retailers such as wal-mart, home depot, lowes and others facilitate illegals with bi-lingual packaging. I'll bet you cant go to a home depot that does not have "entrada" on their front door.
thanks for reading my rant now tell me have I lost my mind?
Kodah
|
