“10 Things Going Right in America’s Economy Today”

I can’t take any credit for this article (I didn’t even find it first, my brother sent it too me), but it gives a nice perspective switch to the state of our economy beyond what the mainstream media outlets are pumping out. “10 Things Going Right in America’s Economy Today” was published recently in Kiplinger and details 10 of the bright spots in today’s marketplace that have a direct benefit to you and me. Hope you enjoy it!

Don’t Bail them Out!

Okay, so there’s been quite a roller-coaster ride the past few weeks in the financial market. A handful of lending institutions are looking to (or already have) close their doors if they don’t get some help. So why shouldn’t the government bail them out? Three words: IT’S COMPLETELY INSANE!!!! Let’s process this whole bail-out idea briefly.

The government is going to take $700 billion or so of tax payers money and buy bad assets (debt) from these company’s that were raking in the profits over the past five to seven years. Basically, the same greedy company’s that have been giving out sub-prime loans to people that had no business having a loan in the first place, are finally feeling the consequences of their poor decisions. Then, our all knowing government decides in all it’s wisdom to step in and wipe their balance sheets clean of all the bad debt so they can start lending more aggressively again! What are they thinking!

If insanity needed a new definition then government bail-out plans would have to be a top contender. Granted, without a bail-out the financial sectors will more than likely continue to drop lower for the next several months, but that’s a whole lot better than the position that the mass population of Americans will be in down the road ten years. The idea that throwing a bunch of money at this financial mess is the fix-all solution is completely irrational. To put it bluntly, you can’t outspend stupid. What is needed more than ever right now is reformed financial mindset in the government, on Wall-Street, and in our own pocket books. People need to get educated as to how money really works, including the basic principles that when you spend money that you don’t have (debt) on things you cannot afford it will catch-up with you. And when you lend money to people that should never have been getting a loan in the first place, it’ll catch-up with you.