Thu 15 May 2008
I’ve been rather unattentive to my blog. I apologize to my readers for that. Been busy at work, and other stuff. This blog ultimately is not by number one priority, despite my desire to make it at least in my top 10 priorities. Anyhow, to the main topic.
I’m personally perplexed at the state of the Consumerist Americana. I had been very hopeful that with the current housing downturn that Americans were finally ready to learn a lesson. I commented as much a few months ago. I spoke too soon, and have been proven wrong. Consumers are turning to plastic now that they’ve drained their home equity/piggy bank. There’s no question that many Americans are suffering hard times. Just as there’s also no question that too many Americans have also lived beyond their means.
I’m not against debt. I think debt can be a useful tool. I’ve got quite a bit of debt. Student loans and mortgages. Properly managed debt has it’s place. The problem with debt under which I include dipping into home equity, is that it allows too many people to achieve instant gratification. If there’s a skill that modern man has forgotten, it’s the ability to delay gratification. In the old days, you had to save money if you wanted to buy something. Some people still do, but too many buy first and ask questions later.
So what does this all mean? Not sure. Though I’ll join the Greek chorus of Cassandras, and simply state the bill will come due at some point. Hopefully soon. I feel it’s much better to learn our lessons, endure some pain, and emerge a stronger economy of prudent consumers. The longer we put it off, the greater the crisis.
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May 16th, 2008 at 7:27 am
My sister’s family is heading this direction. She quit her job to look after their two young children and doesn’t plan to go back to work for several more years. In the meantime they spend about $400/month more than they earn and it goes on the credit cards. I feel stressed out just thinking about it!