In a nutshell, America fooled the rest of the world into lending it money in the form of real estate securities. We conned trillions of dollars out of foreign countries by selling junk securities dressed up with a tripple A rating. Briefly, the CRA act (Jimmy carter 1977) required Fannie and Freddie to make and sell risky real estate loans to high risk applicants. These loans were bundled together and sold as derivatives. To make them look good for lenders they got AGI insurance company to back them in case of default. Junk notes suddenly became AAA securities!

The pirate brokers took them to foreign buyers so foreigners eventually owned 2/3s of our real estate debt. Because Congressional oversight created this whole unfortunate financial structure, the US government is responsible, in the end for fixing it. That is why Bush and Congressional leaders are in such a hurry to do a fix. Our politicians are responsible!

Will the world ever lend money to the US again after we tricked them once? Obviously not so we are in deep doo doo and will need to come up with our own solutions.

The only way out is for the US to revert back to its productive past when we PRODUCED a lot of things. When we built factories, power plants, pipelines, ships, infrastructure and exported raw materials and products. We really don't have a choice. America is not a nation to sit on the sidelines.

Our political structure will soon realize that changes need to be made to allow this to happen. What changes will be needed?

The real question is: How has America changed?

I won't say it is the only solution but it is very high on the list with five stars behind it as what needs to be done.

The claims of outsourcing not having an impact are indeed true, from a certian point of view. Not all loss of manufactoring was called outsourcing.

There are many regulations in place that have to be removed one of which is a plant that could tremendiously reduce dependence on foriegn oil used in fuel, paints, plastics and virtually all things made from petro-oil...and that plant can not be freely mentioned even here on ATS.

Sure, I would like to have a small lunchcounter type dinner, but without duly employeed workers with extra income; I don't see it happening anytime soon. I could build furniture if I had the space and tools to do it, but who will buy it?

We can print and pour an infinate amount of money into the system, but it is completely useless without it getting into the hands of the people that are willing to create jobs, pay well and encourage spending so others will create jobs and keep the cycle growing.

But alas, people think I partake of that plant for other uses because I can explain things that don't make sense to others. Maybe I should start so I can be just like them and blow the whole thing off as "nothing I can do about it".

Why was America able to build an oil pipeline across the state of Alaska in just a few years back in the 70's?

The biggest reason was that the legal environmental blockades were set aside. They were suspended so that the work could start. America went to work and we had a pipeline in about 4 years over the most difficult terrain in the world! Companies were still responsible for any damage they did to the countryside but work proceeded.

Typically environmental groups using environmental law will put up one legal blockade after another for endangered species, wetland, whatever issue they can find. Years and millions if not billions are spent in useless energy and whatever project goes unbuilt. America went from a country of builders and producers to the land of litigation in a couple of decades!

All it will take is the will of the people and a change in the politicians and things will proceed. When parrents realize that there is no future for their children because of the silly political decisions that they themselves allowed to happen back in the 70s and 80s their minds will change. Suddenly their own wealth, welfare and retirement will become more important when suddenly there is no future and the tough choices need to be made.

My parents remember clearly the doom and gloom of the 30's and the arrival on the scene of a president, FDR. What did FDR do? He raised taxes on businesses so even more business went under. And he established social programs like the CCCs and social security which sounded good but did nothing to end the recession. Remember what brought us out of that recession? FDR declared war on Germany and later on Japan. Can we draw some parallels here? We have just had the biggest week of losses in the Dow ever! Worse than 1929 for goodness sake! We don't want war at all cost! We need politicians that can put America back to work!

We need to lower taxes and penalties on businesses in general, not just a favored few. People of course need to keep their money not send it to Washington. All the legal congestion needs to be cleared out so that work can begin and litigation stops.

We can't afford to grow government any longer! No new programs, limit the existing programs or sunset them.

Find the politicians that put us in the present mess (Barney Frand, Chris Dodds and a whole lot of others who just sat around and allowed this to happen on both sides of the isle) and throw them out, make examples of them so that future politicians pay attention!

We need cheaper, cleaner energy and they will be found but for now we need to clear the way for ANWAR and offshore drilling. Then new, clean nuclear plants need to be put on line. All the alternative energies need to be encouraged without subsidy. There are good alternatives like solar, wind and geothermal that will work to reduce the burden on fossil fuels.

We have a tremendous reserve of coal and oil shale. Environmental restrictions prevent us from using most of the resource. Did you remember that we have the largest high grade coal deposit in the world in New Mexico? We could use it now except that Bill Clinton locked it up in 1996. Why can't it be unlocked? Congress needs to get to work!

I'd like to hear what other suggestions, ideas and changes are out there!

[edit on 11/10/08 by plumranch]

Clean energy!!!




[edit on 12-10-2008 by Leo Strauss]

Originally posted by plumranch
The only way out is for the US to revert back to its productive past when we PRODUCED a lot of things. When we built factories, power plants, pipelines, ships, infrastructure and exported raw materials and products. We really don't have a choice. America is not a nation to sit on the sidelines.

I've often thought about starting a thread on similar lines about Britain.

Many of the things you complain about is equally applicable to here too. We have no manufacturing industry to speak of at all in this country. This manufacturing industry was the traditional employment base for the working classes in Britain. The manufacturing industry was replaced by a boom in a largely office-based service industry - traditionally the domain of the British middle-classes - but that is now being outsourced abroad. I'm fairly sure many Americans recognise this development.

Britain needs to be producing again, but starting from scratch. The world has arrived at the point where we need different, new products. Our reliance on wasteful and resource-inefficient products has come to an end. There is a need for new paradigm in manufacturing as well as their being a the market for it and there's definitely a need for manufacturing jobs.

The problem is, as always, Big Business with an eye on short-term profits. If, over the last few decades, Business hasn't been willing to invest rather than just exploit, much of the problem we're seeing now, around the world, wouldn't be happening.

so...we need to build factories, pollute the environment, cut down all the trees and devastate natural habitats so that we can have a good economy?

why do we need the economy? oh right right, because it allows a few at the top of the pyramid to control everyone else. and since they have the police, armies, bombs and guns, we are stuck with it...for now