Credit Crunch

I've said recently that the economy is in a precarious situation. Part of the reason that we all know has been the loose practice of credit. Specifically as expressed in the Sub-Prime lending of mortgages for homes. As that crisis is being 'handled' and a solution is in sight to force the mortgage lenders to freeze rates for a few years to prevent a slew of forclosures, another shark in the credit pool is being brought forward.

The philosophy under the current regime that they call compasionate conservatism is neither compassionate nor conservative. It has been a shabby facade for deregulated capitalism. Some will point to the great things that have been wrought from throwing off the regulatory noose, the flow of capital and the boom that we experienced. And now we're seeing the other side of the coin and realising that we threw the baby out with the bath water, if you'll excuse the mixed metaphor. This libertine economic policy and philosophy has proved dangerous in the least and tragic at the most. In one word this philosophy is Predation.

We have to be careful though. We don't want to go to the extreme and over regulate, nor do we want to give these companies easy outs for the troubles they've caused the economy. But we do want to help the American people which will come from careful thought and consideration.

Your vague economic post of the day.

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