Economics, YTT

Precepts of basic economics are simple and few. According to the observations of "Simple Simon" from the Washington Times, February 2, 2009 our current recession, as well as numerous recessions from the past, stem from the "short selling" of stocks. For those neophytes of economics, the term "short selling" refers to the practice of an individual selling a financial instrument that individual does not own at the time of the sale, but with the intention of purchasing that same financial instrument at a lower price. In essence, the financial instrument is "borrowed" or "rented" (the term used most prominently in the financial world) with a promise to the lender of repayment in kind. However, if that same financial instrument's price decreases, the original seller makes a profit on the difference between the "original selling price" and the price paid at the time of repurchase. Conversely, if the price of that same financial instrument increases, the original seller has a loss and then must make up that difference to the lender. As you can see, "short selling" or "shorting" is an extremely risky venture. According to many economic experts, the rescinding of the Securities and Exchange Commission in 2007 of the original 1934 "uptick rule" which prevented short selling, is a primary causation of our current economic crisis. Numerous Republican Presidents have supported and enforced the "uptick rule" in order to sustain economic stability and growth. President Bush "43" was the most recent to uphold that same principle of 1934. In contrast, Democratic presidents have seen fit to rescind the "uptick rule", causing instability and added chaos in the financial markets.
Further, creation of the Community Reinvestment Act of 1994, during President Clinton's presidency is thought to be a major contributor of the current housing crisis, in that it forced banks to lend money in the form of mortgages to those whom did not have the financial capacity to support their mortgage loan. On the whole, it appears recent history has demonstrated the Democrat controlled Congress, since 2006, has performed brilliantly to foster more mortgages to all, while permitting lending institutions free reign without proper supervision. Now, the financial crisis burdens every taxpayer's future through potential tax increases currently being proposed by Mr. Obama, Nancy Pelosi and Harry Reid. What will be next? This saga shall continue...for a very long time!
And for the record, your medical records will not be the only aspect controlled by the government. Take a walk down the more than sixteen hundred pages of the proposed "stimulus package". America, are you becoming more livid with each additional piece of bad news and the manner in which we are being treated by our own government? Stay tuned!