      
 Bush’s Quick-fix Solution to the Economic SlumpCategory: Recent Articles Published: Friday, February 15, 2008 Bush's move to cushion the economy through the release of relief funds is very becoming of the recent trend in the American attitude: consumerism. It's as if the government is buying its way out of the mess which the accumulated mistakes of the previous administrations have made. And even though the political bigwigs won't admit it, there is pessimism in the air, and everyone, consumers and investors, are stalling for time before making their next purchase, their next move - a bad omen for an economy with an already hefty financial dilemma. Dubya Bush himself has acknowledged that there is a current uncertainty in the economy, and in an effort to cushion the possible backlash, is poised to release a $168 billion-dollar economic rescue package, which was already approved by Congress. This is intended to keep up the pace of the growth of the economy, and provide the people with a steady moral to work - and consume. The relief package is broken down into individual taxpayer rebates, with amounts between $600 and $1200, as well as $300 assistance funds for disabled veterans, the people of marginal income, and the elderly. Like the funds would go along way to help the needy; with 10-dollar fast food meals, and 300-dollar walk-in clinic fees, how's a measly $600 able to supplement a financially-troubled American's lifestyle? Not to sound like an ingrate, but a little Michael Moorian pessimism (if there is such a term) is needed here. Most of the low-income people and even the elderly are already knee-deep in credit card debt, and the last thing they want is the direct insult of rebates which is no more than politically-correct alms. The problem with America is credit, not funds. The need to keep up with the Joneses has led to a plethora of quick-fix ways to reduce mortgage problems, either through refinancing, debt consolidation, and what have you. If worse comes to worst, as is the case right now with the housing slump, many people are facing a foreclosure. And the refinancing companies are having a great time with it, to the detriment of the rest of America. Raising the housing loan limit may provide leeway for the meantime, but in the long run, something must be done about the system. Why can't the cap on purchasable loans by refinancing be permanent in the first place, as proposed by the stimulus package? Borrowers are in a tight financial crunch anyway due to the credit plunge, and they could use the extra slack. What's worse, the situation recurs in a vicious cycle, beginning with adverse credit. A bad credit rating makes it hard to be approved of a loan without security, and if the loan is intended to finance a home which is the only available collateral which the borrower can offer, he or she is stuck in a tight spot. More often than not, the mortgaged home is put up as collateral for the loan which is used to finance it, with the end result nonetheless unpleasant. All the talk of economic conditions won't make much difference to the average American unless, he or she is directly affected by it, and the rules involved in herd behavior dictate that Americans chew the cud, waiting for the economy, and their morale, to brighten up.  February 2008
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