Consumerism
The advent of televised commercials many years ago had a profound effect on society. There always had been commercials, on radio, in magazines and daily newspapers, on billboards, but none with the impact of the TV variety. The audience salivated at those beautiful products and went out and bought, bought, bought; and in the following years it was more and more on credit.
A hundred years ago, if you wanted to buy a house or any major item, a sizable amount of cash was required. Following the second world war, I remember down payments of 30% or more on cars. A mortgage down payment was out of reach for many. People had to save for what they wanted. All in all, not a bad form of discipline. Gradually, over the years however, the lenders made it easier and easier until today no money down at all is required, and all hell has broken loose. People bought large luxury homes at sub-prime rates which they plainly could not afford, so when the rates went up they defaulted. We all know the result.
The credit card companies keep filling my mailbox, and everyone else's, with invitations to sign up. It is now common for a person to have several cards maxed out. And as these companies have their headquarters in Delaware and South Dakota where there are no usury laws, they can charge whatever interest rate they like. It doesn't take long at eighteen or twenty per cent to get deep in the hole.
Credit in the financial realm has led to collapse of the stock market. Big investors and hedge funds bought on margin to a point where an otherwise mild "correction" was disastrous for them, with losses running into the billions. The panic selling pulled the rug from under financially sound dividend-paying stocks, owned by prudent investors and conservative mutual funds, sending them tumbling. Pensioners and those putting away for their pensions are badly hurt. When the bad go down, they pull the good with them.
And what is the cure for all this mess? Governments are injecting billions of taxpayer dollars to loosen up credit so that we can buy more things and thus save ourselves. On credit. George Bush has been telling us for some time - Buy! Buy! Buy! That's the cure? I thought it was the disease.
In the comic books of my childhood, the arch-fiend mad scientist professor whose diabolical schemes had been thwarted, is seen standing on the edge of a high cliff screaming "Fools! All of them fools! They wouldn't listen! They don't understand!" Somehow I feel for this madman. Given a powerful bullhorn and a high precipice, I'd like to do the same.
Will the world take a lesson and back off a little on this greed thing? Will it be seen that shopping for more and more goods is not really in the spirit of the American Dream? At 5 a.m. on Friday, at a New York Wal-Mart, two thousand shoppers, some of whom had lined up since 9 p.m., broke down the doors and stampeded killing an employee. Police who were trying to help the victim were jostled. Go figure.
A hundred years ago, if you wanted to buy a house or any major item, a sizable amount of cash was required. Following the second world war, I remember down payments of 30% or more on cars. A mortgage down payment was out of reach for many. People had to save for what they wanted. All in all, not a bad form of discipline. Gradually, over the years however, the lenders made it easier and easier until today no money down at all is required, and all hell has broken loose. People bought large luxury homes at sub-prime rates which they plainly could not afford, so when the rates went up they defaulted. We all know the result.
The credit card companies keep filling my mailbox, and everyone else's, with invitations to sign up. It is now common for a person to have several cards maxed out. And as these companies have their headquarters in Delaware and South Dakota where there are no usury laws, they can charge whatever interest rate they like. It doesn't take long at eighteen or twenty per cent to get deep in the hole.
Credit in the financial realm has led to collapse of the stock market. Big investors and hedge funds bought on margin to a point where an otherwise mild "correction" was disastrous for them, with losses running into the billions. The panic selling pulled the rug from under financially sound dividend-paying stocks, owned by prudent investors and conservative mutual funds, sending them tumbling. Pensioners and those putting away for their pensions are badly hurt. When the bad go down, they pull the good with them.
And what is the cure for all this mess? Governments are injecting billions of taxpayer dollars to loosen up credit so that we can buy more things and thus save ourselves. On credit. George Bush has been telling us for some time - Buy! Buy! Buy! That's the cure? I thought it was the disease.
In the comic books of my childhood, the arch-fiend mad scientist professor whose diabolical schemes had been thwarted, is seen standing on the edge of a high cliff screaming "Fools! All of them fools! They wouldn't listen! They don't understand!" Somehow I feel for this madman. Given a powerful bullhorn and a high precipice, I'd like to do the same.
Will the world take a lesson and back off a little on this greed thing? Will it be seen that shopping for more and more goods is not really in the spirit of the American Dream? At 5 a.m. on Friday, at a New York Wal-Mart, two thousand shoppers, some of whom had lined up since 9 p.m., broke down the doors and stampeded killing an employee. Police who were trying to help the victim were jostled. Go figure.
posted by puzzled @ 5:32 PM
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