CNN reports, “Jittery Consumers Likely To Trigger Recession”.
Actually, the consumer has very little to do with it. Sorry Ted Turner.
A recession of devastating consequences is about to hit us, and so far all the media is just blaming the consumers for not spending. Hard to spend money you don’t have.
Our houses are worth less and harder to sell.
The American dollar is increasingly losing value in a global economy.
Even credit, which was largely responsible for the ‘recovery’ after the economic collapse following 9-11, is now drying up as banks realize risky loans and extended credit options have hit their limit. And we all know that at some point credit must be re-paid.
How exactly is the ‘consumer’ responsible for any of that? And furthermore, why exactly should we be expected to spend our way out of it? It’s asinine to assume that the market is tapped because of falling credit and property values and that the solution is to encourage people to spend more.
An increasing number of analysis are saying a recession might actually be what is needed. That it might actually better people’s economic conditions is never discussed. The government/media complex chooses to focus only on how it will affect Wall St, a short-sighted and and increasingly narrow point of view in a global economy.
So where do we go from here?
History shows countless examples of people who have built capital in a ‘down market’. But it does require us to slow our spending, invest our money and built real wealth not based on credit. It’s not easy to do. But think about it, if your budget is short, do you really need a $400 a month SUV payment when an older model will do just as fine? Is that ‘interest only’ or ARM mortgage really worth the economic backload at the end? These are consumer driven models in response to the recession. And that is exactly what the MSM does not want to happen.
But what choice does the consumer have? Even economists are saying a ‘average’ holiday season is in store.
But here is something else to consider: job cuts are are to follow if, as predicted, the economy continues its downward slide this holiday season. Are you ready to be the first to act?
Get your car paid off now.
Cuts the frills, cable, subscriptions, etc.
Make sure your investments are liquid, consider pulling them out now to consolidate and eliminate debt.
Consider starting that venture project now, have something one the side to balance your families economic load.
But most importantly realize this: the biggest opportunity will usually coming at the worst possible time. Positioning yourself now will pay off in the end. Looking to the government to to solve this mess will only result in actions that are too little and too late.
“This too shall pass”
And those who are smart now could come out better in the end.
