Financial Topic: A slap in the face for the rest of the human race

Imagine this:

A man works for 45 years for the same company, making a modest income. He provides a comfortable life for his family. He never buys anything on credit. He saves a small percentage of his income every month, investing cautiously in bonds and mutual funds.

This man lives outside of the USA.

He invests in mutual funds from a respectable bank in his country, which in turn, buys "low-risk loan packages" from US banks. These "loan packages" are rated as "low risk", BUT the true contents of the "loan packages" are "risky loans to US homeowners who are living beyond their means."

Foreign banks "trust" that the US banks are selling "low risk loan packages", because banks are required to disclose the risk level of their "loan packages". But unfortunately, US banks don´t adhere to the rules, because the US government will not punish them for being dishonest.

Unfortunately, when US homeowners don´t make their payments, the foreign bank gets the raw end of the deal, and in turn, so does the honest individual investor.

My point is: Every bank on this planet is working with money which was initially earned by hard-working and honest INDIVIDUALS, who over their lifetime, EARNED more than they SPENT.

It´s a slap in the face to the rest of the human race when an American lives above his means, doesn´t make his monthly payments, and then expects to be bailed out and have a second chance, BECAUSE the invested money did not come from within the United States.

The value of the dollar is falling because 95% of the world´s population is slowly but surely losing "TRUST" in the ability of the USA to "adhere to the rules".

Which leads us back to the INDIVIDUAL: If you want the United States of America to be respected and accepted by the rest of the world ... do your part, by living within your income, paying your bills on time, and voting for a candidate who realizes that the USA is only ONE of about 180 countries in the world.

New York to shop for bargains, now that their Euros are worth so much more than the dollar.

not having to refinance their home in order to go bargain hunting!

My city has one of those outlet malls w/the upscale stores (Saks, Barneys, etc.) and it's packed -- with foreigners.

but also the fact that the salespeople at the outlet malls are probably only earning minimum wage, another reason for the prices to be attractive to foreigners.

there are few replies to this message, which makes me wonder:

Is it old news?

or

Is it too true to feel good about?

in that he was using his "earned" capital as an economic factor.

He was also playing by the rules, but the US banks were not.

Ask your family, friends and colleagues.