THE “MILKING EFFECT”
Many American’s are struggling to keep their homes; in Hollywood, Pembroke Pines and Fort Lauderdale, others have lost jobs and can’t find work. Are people going to be able to spend less if they have nothing to spend? Are the banks ready to lend to jobless people, as they increase fees for withdrawals and various banking transactions? I was taught at an early age that 1+1=2 but 0+0 equals nothing because there is no value in zero.
Now that the Mortgage Industry has somewhat stabilized, so we are led to believe, our financial industry should build-up, right? Are the spending dollars available? Or is it just a dream we wish to pursue in some distant future? As we look into the financial and securities industry we see fraud and mismanagement everywhere. The number of homes across the country that received initial default notices, (which is the first step in the foreclosure process), according to the foreclosure listing firm RealtyTrac, jumped 33 percent in August from July. This average includes cities such as; Hollywood, Margate, Pompano Beach and Coral Springs. Is there any way fix the mistake? Banks, mortgage companies or investment brokers made and to find out if they falsified documents that caused the holes in our economy.
So the “milking effect” has begun…we have less to spend, and yet we are milking from the working, the productive, and the wealthy. Our economic “leaders” expect to replace revenue by “milking”, for what others no longer contribute into our economy. For most people this makes no sense. There are people with no jobs, or struggling to live in homes of their own. People in general need to be employed and productive, in order to earn an income and contribute, not incur more debt and fees making the already bad economy, worst. How are we are going to grow our economy if we use every bit of “parked” wealth and “parked” money to mend it? Can we continue to exhaust our investments to this cycle of loss? Who protects the investments? Is there any hope for the Financial Investors and Securities? “No use crying over spilled milk.” But with these hard times, also come people who exploit investors and commit fraud using investment firms. We can only try to do the best with what we have and hope for growth of the economy in our time.