I'm not an economist or anything, but it seems to me that something's really wrong when our economy doesn't work unless people are being financially irresponsible.
We're having a subprime mortgage crisis in the US. To get to this point, when rates were low banks started selling adjustable rate mortgages to high-risk borrowers. As the rates went up, a lot of these mortgages defaulted. The housing market was crazy while this lending was going on and now, it's in the toilet. Wouldn't it have been better for the market if the lenders hadn't put out so many subprime loans?
Congress is working on sending out rebate checks to US taxpayers this year. The financially responsible thing for us to do with those rebate checks is save it. The reason the government is sending them out is for the opposite reason...they're expecting that everyone will immediately go out and spend that money. It dumps a bunch of cash into the system and hopefully gets things moving again.
I'm not one to go running around protesting "the system" but it just boggles my mind that reckless spending is the primary driver of our economy. How did this happen??
Wait, I don't want to know.
It's not as exciting, but wouldn't be a lot better for our economy if we all saved and invested the way we should? Some cash in the bank, some invested here and there? IRA's and 401(k)? How is that a bad thing? People struggling with debt and going bankrupt aren't good for the economy either.
What's worse is single people without dependents only get 300. How am I to afford the Ipod touch with that? I feel you.