As much as I would hate to admit it politics effects our economy in many ways. The $700 Billion Bailout was passed today much to my dismay. I now realize I have to brush up on my politics.

If you aren’t exactly sure of what happened. Our economy is a mess. Many people wanted to buy homes during the housing boom. (Many argue that) after the Clinton administration, America was instilled with an “everyone has the right to” attitude. Remember, no child left behind? Ring a bell? Unfortunately, many say this ideology seeped into the housing market, thus leading to the mess we are in now. Everyone had the right to own a home. Last clause left out, even if they cannot afford it.

I just think people got greedy.

Brokers and future homeowners got greedy. Brokers wanted the commissions off home loans. Homeowners wanted too much home with not enough money. Then banks and Wall Street wanted in, they too wanted to get rich quick. Traditionally, banks were liable for any defaults in home loans, but Wall Street (aka The Fat Cats) got innovative. They wrapped all of these loans (that were pretty much junk) and started to slang them on the market, as mortgaged back securities (MBS) and collateralized debt obligations (CDO). AKA just fancy dancy names to confuse us common folk.

Anyways after people started to default on their home loans, the market realized these MBS and CDO’s are worthless and toxic. Banks and even other countries, bought in on the hype and bought them. Everyone was buying them. Now, many banks and even countries are dealing with their losses. Many banks are either selling off assets to cover their toxic debt or they have closed shop. At least government jobs are up. Yay!

Recession Ahead?

The surplus of money that the Clinton era left behind is now gone. We have trillions in deficit and now we have to foot Wall Street $700 Billion. Pensions are now down, unemployment is creeping up, Dow Jones is down, and no money for our children and elderly.

We can expect to pay more for taxes too. We are also paying for:wooden arrows, auto- racing tracks, rum production and of course toxic MBS and CDO’s. Don’t believe me? Check out Chicago Tribune or OpenCongress.org.

Bear with me as I educate myself on what a bill is.

Saturday: beers, wieners, and two music festivals.

Sunday, chocolate & wine tasting and furniture shopping.

• Oktoberfest 2008- Starts Saturday (10/4/08) at Alpine Village 833 Torrance Blvd. Torrance, CA. 310.327.4384. Free admission. Festival has booze, food and entertainment. A few years ago they have benches in the middle and food stands around the perimeter, I’m pretty sure it will be the same. Talk about a sausage festival…
• LA Chocolate Salon (chocolate and wine tasting)- I’m so there I already have my bag ready. Admission Sunday (10/5/08) from 11am – 5pm ($17-20) at The Pasadena Center. 300 Green Street Pasadena, CA.
• LA Weekly Detour Festival (Official Site)- Shiny Toy Guns!!! I love them! Mars, Volta, Gogol Bordello, PB Wolf, Adam Freeland, bitter sweet, and more. Saturday (10/4/08) at 12pm. Downtown’s City Hall. 1st and Main. Yelp line up.
• Eagle Rock Music Festival- Tomorrow (10/4/08). Eagle Rock Blvd and Colorado Blvd.
• Furniture Sample Sale- Need new furniture? Hit up LA’s Design Center Furniture sample sale. All weekend.