Revelries pushed America to recession. Is there anything in stored for future gen?

It has increasingly started to become clear that America is slipping into recession. With the sub prime crisis hitting one of the largest investment bank Bear Stern causing it to file bankruptcy followed by IndyMac Bancorp Inc, Fannei Mae and Fredie Mac..or in short FULL MAAZA , it seemed clear that there was more to follow them. Inspite of this mortage gaints FMs not backed by goverment, they are implicitly assumed by everyone to enjoy government support and this has cause they to behave reckless playing with the hard earned money of Americans. Just after few months, investment bank dealing with this rather complicated products formed out of mortgages given to sub prime customer, started revealing this losses which they could have carried on as MTM (mark to market).

But what is surprising in this predecided mortgage games is how the FED has tacked. It started offering huge stimulus,just an exaggeration infact the crisis is so huge that not even US reserves could compensate it completely, to gain the faith of investors and the innocent tax payer in the economy. During the past quarter-century, the world's most powerful economy has suffered only two official downturns, in 1990-91 and 2001. Both were short and shallow. In 2001 consumer spending barely skipped a beat; a decade earlier it fell, but only briefly. Buoyed up by rising asset prices and financial innovations that allowed ever more people to tap ever more debt, the collective American wallet has not snapped shut in almost two decades. The proportion of debt far exceeded the income, causing the numbers in the debt to income ratio look other way round.

This recession we are now entering is a result of bad attitudes and behavior. It seemed like just about everybody became entitled to everything.Nuts gobbled up resources like there was no tomorrow. Americans brought big cars and big houses that they did not need and ,if needed, debt surpassed their income . This was all due to lax banking policies and unrestrained green paper. Attitudes that came mainly from the right wing, however the left has more than its share of the blame stated I want it, give it to me now and to you know where if anybody gets in my way. Also, they stated that I do not have to pay for it, let others pay for my Hummers and SUV’s. The money they borrowed from this came from overseas and future generation of Americans will be poorer while trying to pay off his/her unpaid for luxury. The current account deficit will never be paid off . Taxes will be high, and the era of tax cuts will be long distant memory.

This when compared to China is completely contradictory. Chinese govement is acting smart. They believe in conversing resources in which ever form it is. America is inefficient and Americans grossly inefficient and that is why today jobs are being outsourced Offshore. American Companies were so stupid when they first launched their Products in India(They used per capita American Consumption Patterns to base their future Market Potential in India). FYI..India's per capita income is just $500 as compared to $40000 of America. America's use of energy and food- it is grossly inefficient and a colossal global waste.Majority of the Americans are grossly over weight and it brings along health problems. America is on a negative feeding cycle based on one bad inefficient practise leading to another.