CHESSNOID

I have to admit now that Obama and other politicians are using the phrase “worse recession since the great depression” just as a line to push their agenda, even I get tired of hearing it.  First of all, most of us are not as well off as most of these politicians, so they do not “feel” the pain.  Next, I am not a believer of the stimulus package or any bailouts that they are pitching.

Obama and his administration promised change, but on the economic front it truly is the same.   President Bush did major tax cuts and major deficit spending.  He also the the stimulus package last year and the bailouts.  They just do not work no matter how many economists and experts think theoretically it should. We will not be able to spend our way out of this recession.

When an individual, family or business sees a drop in income or revenue and the bills or expenses stay the same, they do the most common sense thing.  They reduce their expenses by cutting back on non-necessities and/or they increase their income or revenues by getting a second job or increasing sales.  Considering the state or our economy, reducing expenses will be easier than increasing income.  Why is Obama and his administration of change not listening to common sense?  You do not have to be an economist, analyst, or “expert” to recognize basic solutions.

The US is not the only country experiencing bad times.  I found this story very interesting and wondered if it could happen here. UK Times online:

For many expatriate workers in Dubai it was the ultimate symbol of their tax-free wealth: a luxurious car that few could have afforded on the money they earned at home.

Now, faced with crippling debts as a result of their high living and Dubai’s fading fortunes, many expatriates are abandoning their cars at the airport and fleeing home rather than risk jail for defaulting on loans.

Police have found more than 3,000 cars outside Dubai’s international airport in recent months. Most of the cars – four-wheel drives, saloons and “a few” Mercedes – had keys left in the ignition.

Some had used-to-the-limit credit cards in the glove box. Others had notes of apology attached to the windscreen.

“Every day we find more and more cars,” said one senior airport security official, who did not want to be named. “Christmas was the worst – we found more than two dozen on a single day.”

When the market collapsed and the emirate’s once-booming economy started to slow down, many expatriates were left owning several homes and unable to pay the mortgages without credit.

“There were a lot of people living the high life, investing in real estate and a lifestyle they couldn’t afford,” one senior banker said.

Under Sharia, which prevails in Dubai, the punishment for defaulting on a debt is severe. Bouncing a check, for example, is punishable with jail. Those who flee the emirate are known as skips.

The abandoned cars underscore a worrying trend. Five years ago the Emir, Sheikh Mohammed bin Rashid Al Maktoum, embarked on an ambitious plan to transform Dubai into a hub for business and tourism. A building boom fuelled double-digit growth, with thousands of Westerners arriving every day, eager to cash in on the emirate’s promise of easy living and wealth.

Many Westerners invested in Dubai’s skyrocketing real estate market, buying and reselling homes before building was even complete. But, as the recession took effect, property and financial companies made thousands of workers redundant and banks tightened lending. Construction companies have delayed or cancelled projects and tourism is slowing.