Thoughts on the economy

Since I last wrote here, the US economy has had major issues and caused a setback in life it seems. People have lost 40-50% in their retirement funds, banks are closing, and good companies are laing off and closing facilities. I was trying to think about why and how, and it isn't so easy. What have the last few years been based on? Well, greed, stuff, and consumption. Everyone wants money for nothing, we don't make anything here, and I think the priorities of many people are out of whack. I have to admit I have definitely been part of it, friving a nice car, buying TVs, spending money like nothing, etc. But at least I have an honest job, support my family, and generally try to make people happy. This isn't really about me though. I wonder being a nation of overwieght, tv-addicted, money hungry slobs has something to do with it. Sure, there are some with values, but the percentages just aren't high enough.

Now I'm thinking of the real estate tailspin we are into now. Things were humming along, going up steadily with the population (I'm talking before the bubble), and generally stable. Then banks, real estate brokers, clever investors, and careless lazy people got together to ruin it. Prices shot up, houses flipped too often, lonas were sold off and shuffled, and the fuse was lit. Honest hard-working people struggled to get into houses they could barely afford, with prices being driven up by false demand and all of the aforementioned players participation. Once the country realized that it wasn't going to continue, prices fell, equity disappeared, and banks fell apart. Simple, huh?

Whats left? Millions who can't get that equity line to pay off debt (read: stop charging shit), banks absorbing property and uncollectable loans, and stockholders holding things they can't sell. Honest loans are hard to come by, property isn't moving, and credit cards are becoming the only place to borrow from. If we as a nation had manufacturing and services to fall back on, we could simply say that people should work harder, live within their means, and be happy with what they have.

I know both candidates preached lower taxes and more handouts, but how can that help? Being more in debt as a country seems like a bad place, yet it doesn't seem like anyone cares. I don't want higher taxes, but I do want equity. I actually had a totally unrealistic thougth on that. Probably woth another musing, so stay tuned

I wanted to conclude here, but I don't really think I said much. There is no advice that wors across the board, but my pretty simple conservative lifestyle, even with some luxuries, seems to work. I guess my one conclusion is that it is a hard problem to solve, I don't have the answer (of course), but at least I can offer my philosphy that keeps me afloat: work hard, think ahead, eat right, and pay attention. Maybe I will post again when I think I can make sense.....