The Economy

Gas is crazy high. The housing market has dumped itself out. But I still think that the economy is still stable (even if in a slight downturn). I know it’s not any sort of real analysis or measurement–but it seems that when lots of folks still have enough expendable income to drop $5 to $7 on a fancy coffee drink, there probably isn’t a crisis quite yet.

(Unless, of course, those folks are just dumb, or they are putting those beverages on a mountain-high credit card tab. Both real possibilities).

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About Danny Slavich

I am a Christian husband, father, pastor, and poet. I lead Pembroke Road Baptist Church a multi-cultural, multi-generational church in urban South Florida.
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2 Responses to The Economy

  1. Crummaster says:

    I could not agree with you more. I will say that inflation is about to hit us a little harder which will hurt the economy. This all started when the housing market went down the tubes because Congress (liberal) decided to force companies to give out loans to people who could not afford the loans. When the interest rate went up, they all sold.
    After the sell off happened the interest rate decreased dramatically because the fed saw that people were affected by this housing market crash which then devalued the dollar. The devalueing of the dollar then caused oil to spike dramatically because it is sold as a commodity which is based around the dollar.
    This alone should show people that the government needs to stay out of the way and let businesses make the right decisions. They know best what the markets need price wise.

    Anyway man, love the blog.
    WC

  2. Ben says:

    http://www.thisamericanlife.org/Radio_Episode.aspx?episode=355

    Not sure how anyone but the businesses could be blamed here. The problem is mostly because greedy businessmen repeatedly falsified documents and gave loans to people that couldn’t possibly afford it. Why did they do this? Because the laws regulating Wall Street trading of mortgages were repealed, after heavy lobbying by big banks. If anything, this crash is proof that laissez faire capitalism doesn’t work.

    Even now, housing in our area still will not equalize back to the level it was at 15 years ago — mostly because commission-based mortgage brokers convinced people to borrow more and more on their houses, so that now no one can sell them for what they’re worth.

    But as to Starbucks — I would guess that when you have a $3000/mo mortgage, $5 here and there doesn’t really affect your ability to make your payment. Although, it’s funny … we listen to old radio shows from the 30s-50s, and they’re always talking about some shortage or rationing (even outside of the WWII context) … nowadays, if something’s short, we just pay more for it.

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