I’m pleased to see the bill not passed as noted from the Economist, we need to cut the fat, suffer from many angles, let the market purge those in which were ill prepared, which in effect will change US social spending habits. As in the auto industry these days, I expect a fundemental change to come from this. It’s not just the corporations and financial institutions whom are to blame, but also the frothy spending habits of ordinary Americans who’ve been blinded with marketing tactics since the early 90’s take on extraordinary debt levels. Amercians don’t even save more than 1% of income every year. That’s sick.

I’m American, and I hope just as Congress has, we face up to our dire reality and make the necessary changes to make things better for long-term and not just shock-and-awe ploys to bandage the bubble.

Yes, the boomers 401k’s are getting destroyed becuase of the market’s ails, but the overall cleansing of the system should benefit Americans down the road.  Who in the hell really deserved a 200k home with no down payment and no monthly payments for 2 years in which didn’t have enough to cover?  These things were smoke and mirrors of the bustling economomy since 2002…

Next to come:  

A) Credit Card Crunch: less people spending on credit, less firms offering lax terms of credit, more defaults on credit cards, and in turn less discretionary spending for the economy as a whole

B) Auto Loans

C) Student Loans:  Less people being able to afford expensive college eductations…