Archive for January 2012
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The Economic Crisis, How Will it Affect You?
First let me say I’m no expert. I’m just an average person trying to make a living, enjoy life with my family, but it is my perspective. Many good people can agree or disagree on this topic without being disagreeable.
We have seen our stock market accounts fall approximately (40) forty percent over the past year. We have see major banking institutions failing and we have all seen our government bailing failed companies out. I realize they may see information that we are not privy to, but basic common sense says that we probably should not be bailing out companies that will fail later regardless of what we do now.
In regards to the stock market many people think that the market will go up (40) forty percent and everything will be fine, but the problem is if you had $100,000 and it’s now worth $60,000 and the market goes up (40) forty percent than you have $84,000 not $100,000. You can see that the market has to go up much more to reach the prior level. Will it go up again? History shows that it will, but it will take time and current retirees need their money now.
The politicians use our emotions against us and sell it to the American people as a must do action or helping another person out. They give you part of the facts. In my opinion they do not tell you all of the facts. For example, the trillions of dollars spent will have to be paid back. Who will pay it back? It will be you and I and our children and perhaps our grandchildren. I guess all I’m saying is don’t treat us as though we are stupid. Give us all the facts, not just the ones that make the case for one side of the argument.
I’m not against helping people so they don’t loose their retirement, but we do have to realize that the money the tax payer pays to help them effects other families. It may indeed cause other people not to retire as planned or at a minimum be forced to delay their hard earned, long waited retirement. Be honest about the facts!
It’s like the housing meltdown. Many of the politicians forced banks to give sub prime loans, but now the very same politicians won’t stand behind their decision. Bill O’ Reilly of Fox News called one of them a coward as I recall. People make mistakes, but don’t point the finger at someone else when you were a major part of the problem. Stand behind your decisions and admit to your mistakes. After we forced the banks to make these sub prime loans we then decide to bail out companies like AIG and they act like a company that is making a fortune rather than a company in need of repair. Spending our money like its extra cash that has to be spent or lost. Sad!
I’m no expert, but I know fairness when I see it and this is not it. When will we get government officials that will be honest with the people that elected them? I’m sad to say we probably won’t and we are part of the problem.
Here is why. For example, lets say you have two people running for public office. The first person tells you that they will have to have major cuts that will effect your pocket book and it will take a while for things to get better, but they will get better over time if we all cut back and work together. You then have person two says that things are horrible, but we have to spend more money, give people stimulus checks and find ways to help people out to make things better now. The government budget is much like a family budget you cannot spend more than you make with one exception the government can print more money that has to be paid back at some time in the future. Which person do you think will win?
You got it the person who paints a rosy picture. Most people care as long as it does not affects them or their family. They don’t want to give up anything they have now. You may be thinking that these bailouts fall into this category, but I personally don’t think they do, because they are such a massive amount of money the American people have to have all of the facts and be part of the decision making process.
Oh, you will hear the arguments they don’t have time and it’s an emergency or we elected the politicians to make decisions for us. There are many ways they can find out what the majority of the people want. That’s just an excuse, because they know the people will not go along with them. They already know what most people think by polls that show they do not agree, yet the go ahead and spend the money. It’s not a particular party, because both parties are at fault.
The affects of these events will cause more loss of jobs, long-term effects on the markets and foreclosures in the United States.
What can we do? I think we can write articles like this, call our politicians, send them emails and at least make an effort. Our children and grand children deserve at least that.
People who are currently retirees or will be entering retirement over the next (5) five years deserves better.
Thank you for taking the time to read this article and letting me vent.