The scare coming our way from Washington is the loss of jobs if the automakers shut down their plants. Their is also collateral damage and further job losses from the suppliers that sell to the auto makers. This could have a rippling effect on the economy. My question: What kind of effect is the borrowing of another trillion or so dollars going to have on our economy, our wallets and our grandchild's, grandchildren going to have? I am not sure six generations is enough to fixed the damage!
Where was congress when we lost the following:
1. The pony express
2. The high button shoe manufactures
3. The buggy whip industry
4. The pay telephone industry
5. The men's suit manufacturers
and last but not least
6. The paper boys (count me as one).
Just think about America today if we had saved these institutions!
I definitely would like to see a "do over" now that we have seen the results of what has happened. Our goal of repealing the economic cycles in the country has more or less failed, but that is until you figure out that we actually, most likely, added a real cycle of inflation that should be a whopper once the recession (depression) ends and we return to normalcy. We then will need to take all the money back to stop the inflation. THAT SHOULD BE REALLY INTERESTING. In as much as I haven't received any money from the government I hereby publicly state
I am opting out of giving that which I didn't receive back to those who didn't give it to me. Somehow that statement probably won't cut it and I will be included in the "giving back" class of Americans. When will it all stop? Talk about an object going down a hill and picking up steam! Wow!
Aside from recalling the entire government what can you do about it? Prepare as you have never prepared before. Start with a realistic assessment of your working or earnings future. Do not count on anything out of the ordinary. Then start looking at your expenses, where you can count anything and everything out of the ordinary. Once you have a completed income statement on yourself, check it again. This is an assessment of your life so you better be close. Philanthropist and Robin Hood probably won't be there for you and congress will definitely not be there for you. Prayer, however, could help. Sit down with your family, if applicable, and give them the news. Then make plans to start building reserves because that is your safety net. Do not feel bad if your reserves are currently negative, because for a very long time that has been the optimistic way in America. Don't feel you need to payoff all of your debt to start setting up reserves or you might not ever get started.
If you have equity in your house take some out for reserves. The way the banking industry works is if you need some money you probably won't get it. If you have reserves in your house now take some out, because when you might really need the reserves, they either won't be there
(falling house prices) or you won't be able to qualify to take some money out of the house.
The most important thing we can all do is try to get back to the principles this country was founded upon which include life, liberty and the pursuit of happiness. They weren't a guaranteed income for life, at any cost, to help with your pursuit of happiness. They weren't take from whomever and give to anyone because they are entitled to a nice way of life. Remember that we have had cities and states that have gone, or should have gone bankrupt;
and a federal government that is definitely considered a bankrupt institution from a financial viewpoint, and some think moral as well, so the notion that an institution, industry or company is too big to fail is .........! Fill in your own word.
I need to end here because I have to organize the bloggers, mortgage professionals, small business owners, real estate brokers or any other group I can claim membership in to start our caravan to Washington to talk with Congress to ...... Never mind, I think you get the picture.