digginout:

So how is it that us simple housewives can figure out a budget and generally stick to it but these big wigs in Washington with all their advisors can't keep our country out of a financial hole like this. It boggles the mind.

Part of the reason is that you can't predict tax revenues for a given year.

So, maybe this year, you have $x billion dollars, so you make some projections and figure you can spend $(X+1) billion dollars.  And, since the housing market was booming, you could even give out some tax cuts!

Unfortunately, that housing market collapsed, so the tax money isn't there... and with that nice tax cut, you just pulled the floor out from under yourself.

.... and alla sudden, the world forecloses on the state...

You are so right digginout.  I was a housing specialist and when I saw the amount of people who became homeless because of the greed of people who had property.  Charging ridiculous amounts for rent or horrible prices to buy their homes the reality of the phrase "Money is the root of all evil" was so true.  People couldn't pay the rents or mortgages.  Now we have an epidemic of homeless children with no funding.  What it looks like to me is this debt will make us go back to learning how to take care of ourselves. I mean planting to get your own food. Housing I really don't know. Someone made a comment some time ago about "the sky is falling" and mentioned that their was always someone who cried out like chicken little. I wonder now if they still think the same way.  When it's in your face and you ignore it you won't be prepared.

Peace,

Jusitce