The problem was fully the Bush Administration saying that the Wars in the Middle East would be quick, and squandering Trillions in wars of choice. In fact, combat operations were calledoff back in 2003; however, the Soldiers fighting in Iraq and Afghanistan failed to get the Bush/Rumsfeld Memo.
The "Bush Wartime Economy" was clearly the main problem. The FED lowered rates based on Bush and Rumsfeld statements of a short war, which inflated Real Estate Values in order to maintain the "Bush Wartime Economy"... This ultimately led to the collapse and then the idiots in Washington blamed the banks and the American homebuyers...
I have a BBA in Real Estate and Finance, Masters Work in Business, Diplomacy and International Commerce. Developed a few million dollars worth of land and dealt with Real Estate Sales in Kentucky and Florida where prices were really skyrocketing. I clearly foresaw the crash and tried to warn Washington; however, I did not hand the President or the Commissioned Congress any special interest money so they did not listen.
I wrote paper after paper, and even got a few form letters from Senators and President Bush. Having helped organize and plan the 1st Gulf War and create strategies that brought about a quick end to the conflict, which saved millions of lives and constructively affected the economic fate of nations. I knew more than most about war and the economy; therefore, I shared many position papers that a long-term conflict would create a major economic downturn. A downturn that would certainly affect America`s long-term economic, and national security interest.
The "Wartime Economy" along with bad trade deals such as Newt`s NAFTA, combined with China and other bad trade deals is now about a one trillion dollar a year trade imbalance. With the squandering of trillions in bad trade and war America`s economy has seen a welfare triple, poverty soar to about Eighty million Americans, national debt triple all while a Commissioned Congress line their pockets undermining American taxpayers best interest. Political Mentor Ross Perotwarned of bad and unfair trade deals that would cost American Jobs, and create economic problems (We now have nearly a 1 Trillion Dollar a year Trade Imbalance)... He warned us about increasing our debt... He was complaining when it was only 4.1 Trillion, now it is nearly 15 Trillion... Yet, people like President Bush, Newt Gingrich and Senator McConnell ignored wisdom over special interest.
I became very frustrated and began to figure out a way to leave Florida, and the anticipated Florida real estate crash behind. So, I packed my family and left before the crash in order to survive. I also had to deal with a few health issues and have a kidney removed due to cancer.
However, I still took the time to try to help my country. I shared stories about what I saw on trips to the former Soviet Union States after the collapse and warned of such things could happen in America if we did not stop running up Trillions of Debt and squander Trillions on Wars of Choice.
I wrote lengthy papers and MicrosoftExcel Spreadsheets such as this one and shared them with the White House, FDIC, and the House Senate Financial Services Committees in attempts to be proactive and preventing a major downturn in the Real Estate market. I came up with ideas that may have led to TARP. The plan was for the Federal Government to quickly inject cash into the Real Estate Market that would prevent it from total collapse. The Federal money could be borrowed very cheaply in comparison to banks and this margin would ease losses by banks as real estate values dropped; however, the Bush leadership and the blaming of the American people and the Banking System; as opposed to accepting responsibility for their own squandering of taxpayer funds on wars of choice. Washington`s actions affected the monetary system and then they blamed Americans. Again I call BS on Washington and all the so called economist that echo this Idiocracy.
Once people realize the problem was with the blundering Bush Administrations "Wartime Economy" and the FED creating an artificial economy then we can take actions to improve the values of housing, and invest in large housing projects again, revitalize our cities and build new cities... The one thing that brought the Soviet Union States out of their collapse was their vast investments in public housing that has stabilized their banking system for decades. They were able to gain access to cash by selling off these assets via privatization.
I do not support Socialize Housing; however, it may become necessary to make huge investments in Housing from the Government side for some time to create a marginal upswing to reduce debt and stabilize continued investments in America. I believe if Jack Kemp H.W. Bush`s Housing Secretary were alive today he would agree. I having a land development background and often talk with other developers. The market is so slow and cash in nearly impossible to obtain to construct. Therefore, Government will have to step in and create vast funding sources via the SBA and other projects that create huge Housing initiatives.
Since there will also be some military base closures I would suggest that folks take a look at this project a bit. I do not totally agree with his concepts and much of the smaller unites are quite impracticable; however, the mass construction is very interesting and could be financeable. My research on "The Venus Project"; however, Jacque Fresco`s project is to be based on RBE or Resource Based Economy and in my opinion is an unrealistic dreamer and does not see the forest for the trees. He does not apply sound economic and finance principles as would someone like Donald Trump to acquire real estate development resources to complete a land development project such as these Venus Project" could bring peace to the Middle East... and this more lengthy part 1and part 2. In addition they have a website http://www.thevenusproject.com/.
American is a "Resource Based Economy" (RBE)... It has a monetary system for goods and services paid in many forms, barter/trade, fiat, electronic, etc... This is the real world... If his projects and/or that of revitalizing cities, developing new real estate projects and/or the building of new cities is to become reality they should be built using practical and sound economic and finance principles, and the capital market mechanisms that the world has in place today... His designs and concepts are pretty good, just need to apply some financial reality to it...
He does not take his own advice and his dislike for politicians, etc and favors "Technical Competence" over citizen involvement... In reality, people find ways to collect data and make available "Resources" in today`s society. "Technical Competence" is all around us. Perhaps a bit less in Washington or easily shelved by special interest cash to a Commissioned Congressman/woman.
Harvey Carroll, Jr.
Yea, I know it was lengthy and covered a few points. Yet, I think that Americans must recognize the problem and how we got here, look are real world solutions, and I think it is good to offer a possible future as well.