Well, they really didn’t say “screwed” so I summarized it. (This is a California hard money blog. This can actually help my business but I don’t want my hard money loan business to be increased this way.)
It’s rather shocking that 5 economists from the mainstreet media have written an article for the Wall st Journal called “The Magnitude of the Mess We’re In.” It actually talks about how the Federal government is destroying our nation’s once prudent fiscal policies. You can read it here:
Wall St Journal Article
One thing about this article is that they are grossly misstating the amount of poop we really crawled into. It says that the budget defecit is 1.2 trillion per year. As bad as this article talks about fate of the US, it is grossly understating how much trouble we are in.
The UNFUNDED liabilities of the Federal gubmint is escalating at over 10 TRILLION a year. Those unfunded liabilites total over 80 trillion, with almost 1/3 owed to public debt holders, current retirees and federal employees in the form of Social Security and medicaid benefits, according to the National Center for Policy Analysis.
We have no way of paying this. For California Hard Money, the state of California and the Federal Government creates a bunch of laws so it’s hard for a homeowner to get a hard money loan to “protect them” but what about protecting the rest of us taxpayers?
It won’t surprise anyone if/when the US loses it’s credit status. We have already been downgraded for the first time. The US has no way out of it except for a default.
When that happens, will I be loaning hard money for San Diego, hard money for Los Angeles? Who knows? I am upset to say the least that we kicking the can down the road so our kids and grandkids get the shaft.