Financial talk

The economic crises that the country is undergoing one after the other are tarnishing the US image with their negative presence. The scope of the economic crises has repeatedly been compared to the financial troubles the United States experienced in the late 1920s. Suggestions have even been made that the looming recession is actually going to transform into a full fledged depression with devastating effects. How can any country present an untarnished image when the economic strength has dwindled to that of an embarrassing status?

Internally, the people of the country are split on what they believe the true role of the US government is as well as on the merits of bailing out the “haves” while the “have nots” get nothing. This is clearly evidenced by the furor of constituents who lashed out against local representatives and demanded that they vote “no” against the stimulus package. Why should those who have squandered the money of others be given even more to squander?

The current crises only serve to point outcertain flaws in the manner that the US economy functions. Economic growth in America is fostered by the crazy idea that only more spending will create a strong economy or improve the strength of a failing economy.

This kind of mentality tarnishes the image of the US in the eyes of many, starting with the US taxpayers who opposed the stimulus package on the grounds that throwing good money after bad is never a good idea. Or perhaps it is the idea that corporations that have proven themselves as foolhardy, ambitious, irresponsible, or any one of a number of other non-flattering words can simply look to the US government to bail them out and then go have a grand party to celebrate.

Of course, as with any government or country, certain flaws are going to exist and eventually become exposed to the world. This is expected. However, when others question the entire basis upon which the US economy now operates, the US image is going to take a huge hit. Gone are the principles that spurred such a fantastic country to emerge and prosper. In place of calculated growth backed by financial savings and realistic expectations, something new and different came into being.

The US economy evolved into a big conglomerate with one sole purpose in mind- to make more and more money without actually having any money touch hands. Speculation, artificial ups and downs generated by catastrophic events or even rumors, and the government’s flailing attempt to solve a manmade disaster with a government-orchestrated solution that does not have the backing of many US citizens can only lead to a once impressive image becoming sadly tarnished with egg on its face.

The manner in which the US government handles each economic crisis should make the government look stronger, more in control, and more responsible. However, when individuals from other countries are throwing their hands up in astonishment or laughing in amazement at the wisdom or lack there of, one can only conclude that the US image is truly tarnished. Unfortunately, unlike silver, one cannot simply apply a bit of polish and a smidgen of elbow grease to remove the tarnish and restore the US image back to a visage of power and control.

Joseph Shalaby is a Mortgage Broker in Southern California with nearly 10 years of expertise and leadership in the real estate industry. His firm American Mitigation Group is a leading authority on mortgage crisis resolution, including: Loan Modifications, short-sales, deed-in-lieu, reinstatement plans, and traditional residential financing.