We are in a recession because the economy stalled when banks went under for giving people loans for houses that were way above their ability to pay back. If I understand that part correctly, that means we got into this mess by 1) coveting more house than was affordable, and 2) debt, debt, and more debt. My grandpa used to pay for every purchase on the front end instead of the back end. It’s called saving. He put aside 10% of his income every month into a savings account, and when he had enough in savings for whatever purchase he desired to make, then he made it. It is the biblical way.
We got ourselves into this mess by spending money we did not have – not only us the consumer who bought way too much house, but the bank who sank more money than they could afford to lose into loans. So now we are told the way out of the mess we have gotten ourselves into is — more spending. We aren’t even going to spend money backed by tangible assets: the printing presses are running 24/7 to create 900 billion (Broken link, active February 4, 2009) out of a few thousand dollars worth of paper. Doesn’t that seem to anyone else to be more of the same kind of house of cards? Only since the spending is so much more massive, the collapse of the cards will be that much more massive when it collapses, don’t you think?
The regular folks are trying to solve this the biblical way – by stopping the spending, getting out of debt, and starting the saving (I can recommend the Crown Financial Bible study to learn what the Bible says about managing money). Sure, it hurts in the short run – but it is the right thing to do to correct the national economy. If our representative government would only heed the voice of “we the people” they might do likewise, i.e., STOP SPENDING! and avert a national catastrophe. But the signs aren’t good.