The New Crisis

Well the old world is in a little bit of a financial crisis. The Dow Jones continues to fall and oil and gold prices are crashing too. But as one of the guys at work said it isn't a time to cry it's a time to buy, well hold off until the market finally bottoms out. If you have any money left that is. So is the threat really as bad as it seems? Unfortunately whether it is or not the end will be a self fulfilling prophecy, I fear. The 'bailout' hasn't seemed to help anything, yet, and I don't know if it really will or not. The whole situation is a little depressing and you just have to hope that at some level people continue to purchase things rather than just hold on to their money, because if people quit spending all together then we are going to get launched into a major recession. I think the whole thing goes back to banks and credit cards. Our society is much different than say Japan. We will buy and buy and buy on credit where the Japanese will only buy stuff if they have the money. I'm sure most people in this country have a net negative worth because of school loans, house loans, car loans. I know I am in that boat, but I at least have a plan to get out of the situation. I guess I am fortunate that Sophie and I share the same mentality when it comes to bills. There are a couple of things that we are willing to carry debt on, but we don't want to be late on bills and we won't charge anything on credit cards that we can't pay off at the end of the month. I learned that last item from my mom who always paid her cards off every month, if you don't, you can end up paying for things multiple times because of the high interest rates. That's all for now have a fantastic weekend.