Economics

It is not like me to use this blog to post about real world politics, but believe it or not I am an educated woman and spend my fair share taking econ. classes, it was my minor.

Everyday I wake up listening NPR and everyday I hear something that makes me think "WHAT THE F**K ARE THEY DOING????" I am sorry but this nation is ran by a bunch of morons.

First- How is it that each state with in the U.S has to balance it's budget and make huge cut backs while we blow trillions on a war for oil and Israelies. (Follow something besides your local news and fox and follow the BBC or something half way decent and let me know when the light bulb comes back on.)

Second- So let me get this straight, we give AIG money, they take a vacation, come back & say they need more money and now we give them a loan?? Do I look like your sugar daddy or your b1tch???

Third- We loan GM $25B, they spend $3B in internet advertising. Dear GM we know who you are, your cars suck and/or are over priced, that's why we don't buy them. Why don't you invest that money in figuring out a way to get the engines to go 100,000 miles without leaking oil all over the place? I mean 100 years using a combustion engine, this isn't like rocket science.

Fouth- We have the Boeing machinests on strike. I understand you are under valued but your neighbor just lost his job 2 months ago and is getting forclosed on next week (see for yourself). There comes a time when you have to feed your family and keep a roof over their head and tell the union to go F themselves.

Now for the Biggie...
How about we raise the interest rate to give our dollar value again and then people will be interested in keeping their money in the banks (since it would actually earn money.) Then we could switch to complete Islamic banking home loans over the next 6 months.
If companies get burned in the process it was probably their own faults, in time other better ran companies will take their place anyway.


Islamic banking:
Say you want a $100,000 house, but you only have enough to cover your closing costs and put $10,000 down. So you need a loan for 90% of your house. Three blocks over a house just like your's rents for $1000 a month.

Given this info., the people that loaned you the money own 90% of the house that you live in. So every month you pay them 90% of $1000, or $900 rent. Then you need to pay down your home loan, so you pay them another $835 a month, so that every month you own more of your home and you pay less rent. So then if you paid $10,000 in the first year, not counting rent (plus your orginal down) you now own 20% of your home, and your rent has been adjusted every month and now you are paying $800 a month rent.

If at the end of the first year you have to sell your house at a loss the loss is split. So say the $100,000 house is now only worth $50,000. The split is an 80/20 (since those are the owned percentages) so buyer would only get $10,000 back out of the sale and bank only gets $40,000 from the sale (plus the rent them.)


I have the strongest feeling everything they are doing right now is only making things worse long term.