Navigation

Eisenhower’s “Military Industrial Complex”

So if you all remember (which I don’t as I hadn’t been born yet), in President Dwight Eisenhower’s farewell speech addressing our country on January 17, 1961 he warned the United States of the “Military Industrial Complex”. This is an idea and concept referring to the policies, relationships, and monetary systems of a country in which a union of defense contractors and the armed forces can allow for misplaced power. Since then this term or phrase has been an often shout out for opponents of military expansion.

Now those of you who know me well know that I’m not always the most politically opinionated person, but I do enjoy history when ages have passed and we can see where a few wise individuals saw a trend happening decades in advance. So here we are now over 50 years later in a situation where I feel we are ramping up for more war with support and influencing from large military contractors in combination with war-hungry politicians. And although there is always the argument that we need to protect our freedoms, fight for oil, protect injustices and massacring in foreign lands, create more American jobs, and strengthen our global presence… Eisenhower eventually described this catch-22 as a necessary evil.

And all this just makes me think about our housing market and the whole “credit crisis” that the news couldn’t stop talking about just a year or two ago. Similar situation in my eyes where in the late 80’s you had a select few shaking their head no when our government began putting pressure on FHA and other mortgage lending structures to loosen lending guidelines and restrictions. The government was very persuasive in demanding more affordable housing for more Americans. So as the mortgage industry gave-in and went on a stretch in the 1990’s of increasing home ownership opportunities for lower income people, private banks funded more and more risky loans until by the early 2000’s you could basically buy any home which a mid-credit score, stated income, stated assets, and almost no money down. And subprime lending was just giving money away! Then when your house appreciated 20% within a few months, a home equity lender would lend you up to 103% of your properties value. RIDICULOUS!!!

Here we are now where anyone who has a sub 700 credit score and/or self-employed income isn’t eligible for a mortgage lending. And if you are, they need your mother’s maiden name, shoe size, blood type, 3rd grade report card, favorite color, and 48 months of bank statements and income documentation. 🙂 So I guess all we can hope for is that the United States government and people learn from this in effort to never let it be repeated again. And I say the US people as well because it’s real easy for people losing their home to sit back and point the finger elsewhere… but I don’t remember anyone holding a gun to people’s heads when they were chomping at the bit to purchase homes outside of their income and lifestyle with almost no money down and no strategized savings for a potential housing depreciation. We the people are just a responsible as the government entities and politicians that aided in the housing/mortgage crisis.

Summary
Article Name
Eisenhower's "Military Industrial Complex"
Description
So if you all remember (which I don't as I hadn't been born yet), in President Dwight Eisenhower's farewell speech addressing our country on January 17, 1961 he warned the United States of the "Military Industrial Complex".
Author

Leave a Reply