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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35649  
Subject: Re: Times on Financial Sector Bubble burst Date: 9/16/2008 4:17 PM
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Still trillions of dollars have been lost. And those funds are coming out of investable funds that might stimulate the economy, create jobs and benefit all of us.

Paul, the problem is that this money was used to stimulate the economy at least Greenspan decided to drive down interest rates after 9/11 much too fast, creating the housing bubble. It was all phony money, and at some point the numbers need to add up, which is why the losses now.

The real problem is the country has been living beyond its means for a long time, and more so for the last 8 years (even when the federal budget was supposedly in balance that was with SS surplus and individuals were heavily in debt). Borrowing to live beyond means is good politics: you don't have to face up to most people's real wages falling. But at some point the money needs to be paid back and it is going to hurt.
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