"Recession Turn Depression"

I had a few more points to stab at you, that did not make it in the final cut of the previous posting "Moving right along... Today's Economy".

There is a bit more to interject here, to completely and accurately depict my lengthy synopsis of the recent economic recession.

Being that of the problem lies blame to "word of mouth", and the government's lack of media interjection or lack of information which should have been immediately interjected by government officials and broadcasted thru media. With a country so strong and looked at as such a predominate driving force behind the entire global economy, you would imagine that we would be much more organized and professional about the currently mishandled events. If government had organized with media and worked closely along side one another, we most likely would not be anywhere near the place we are at this current time. However, another major factor in this "psychological recession" is the "Real Estate Market" itself!

Yes, the Real Estate Market does in fact play a major part in the circumstances which lead up to our current state, however, when you dissect this beast meticulously, you will inevitability see that our "Modern Day Depression" truly could have been contained, whereas the banks would have been the only casualties or victims affected by these "Toxic Mortgages". If someone had done their job,(I would say properly, however, the job appears to have not been even done at all!) to head off the damage done by the "Bank Owned Properties" and contain the situation from it's toxic runoff, then, we most likely would have not been in the stew we are in today! With so many properties being foreclosed upon, it does not make ANY sense whatsoever that the "Banks" would not have adapted to what was inevitably about to occur. And government would not have immediately interjected at the root of the problem! Banks are/were in the position to have not lost anywhere near the amount of currency which they have at this point. There are two major things which could have been done to prevent the amount of loss they have incurred. Banks could have adapted to their current situation by doing the EXACT OPPOSITE of what they actually have done up to this point in time. The banks could have weighed their loss options and projected both possible outcomes.

1. Work with the home owners who were about to loose their homes and interject with an assessment of whether or not they are actually able to pay their current payments, and if not, re-adjust their terms, either percentage rate, or temporary payment reduction. Even, possibly add or roll a year or two onto the mortgage if necessary to recover some of their discounted loss.

2. Foreclose upon and hire "Property Management" for all the potential "Rental Properties" which they were about to inevitably acquire. This would have been a wonderful tool to head off the decline in market value of the homes.

Another factor in our current state was, and still is, the American Vehicle Manufactures. The entire situation was brought upon by the banks as well. Which was a direct result from this "Landslide Effect", which originated with the "Decline in the Real Estate Market". And spilled over onto the creditors/banks which then began the bleeding, continued on... and left unattended, eventually erupted into a "MAJOR BLEEDING OUT" of our financial institutions. Creditors/Banks froze their extension of credit to the consumer & businesses alike, which in turn, directly affected the sales of our vehicles, manufactures, stores, distribution, fuel sources, insurance companies and right on down the line! Our entire economy is affected, entwined with one another and driven by, not one facet, but the entire conglomerate of economic structures which work together, as one gear is driven by the other. However, without an source to propel the gears, they lie dormant.

That is all I have for now... however, with a topic like this one, I am quite sure I will be blogging a bit more later on.

-Richard Peacock