America likes to pride itself on being an underdog society. Worst to first, hard work, and you can acheive anything. Unfotunately, the United States Government has at once, perpetuated and reversed this myth, by further by allowing the debt of millions of Americans to be essentially forgiven with an aggressive rate cut. (Article)
What this unfortunate decision does is allows millions of American to basically wake up with liquidity in their house, allowing them to go and refinance their mortages. Didn't the constant refinancing of our poor mortages allow this mess to happen in the first place?
By forgiving a portion of the debt that Americans have aquired partially through their own accord, the Fed and the Government has told you and me that they will help us get out of our own way, and they will do so by just shaking their head and hoping we do better next time.
This I would argue is not truly American. It's not the underdog mentality. It's the opposite. By forgiving our debt we are now allowed to think that our consequences have no immediate recourse. And the white collar criminals who along with the naiive investors, allowed these poor mortages to go unchecked, get off scott-free, pardoned, if you will, by our own government. How can we expect progress if we aren't allowed to fail? Doesn't the underdog prevail in an environment where all the forces are against, not with him?
The Fed has to step back, allow the recession. Allow people like the banks, like the CEOs to feel the weight of their decisions - not cusion the fall. Only then will America, in true underdog fashion, be allowed to pick itself up from the mat, dust itself off, and carry on.
