CRISIS

The financial crisis in this country is real and it is serious. The huge fear is panic.

Our financial institutions have been operating so rashly for the last 10 or 12 years that they have undermined their own foundation. They have built a house of cards that is about to be blown over like a tree in the path of Hurricane Ike.

Our economy steams along when there is money to be lent to businesses and individuals at a good rate...businesses grow and their employees prosper...the employees buy things and have confidence to borrow money to buy bigger things...and businesses grow more and repay their loans. Everyone is happy. This is the state in which we had been operating.

Our financial institutions became so enthralled by this economy that their competitive nature pushed them to find ways to lend more and more money. Requirements for loans deteriorated to the ridiculous; especially in the housing market.

So many borrowers are now failing to pay back their loans that our financial institutions cannot cover their obligations, have no money to lend or are afraid to lend what they have. Things are quickly coming to a halt. We are near the point when panic will set in and people will rush to get what money they have to try to make it more secure. The stock market will plummet; money markets will shrivel up; fear will control our economy; businesses will pull back; unemployment will skyrocket.

We can't let this happen.

The economy is like a locomotive...its slow to get going once it stops...builds speed slowly...and it is very hard to stop once it gets going at full speed. It will be difficult to get the economy going again but we have to be careful not to get it going too fast.

The worst thing we could do now is nothing. As much as I hate the federal government intervening in private business, it has to do something now. Keep the locomotive moving...don't let it come to a complete stop.