Are we moving toward a cash and carry economy?
I see friends emptying 401Ks to pay off credit cards and others who are seriously discussing bankruptcy after extended periods of being unemployed. Their confidence levels mirror the downward path of the stock market.
I know at least one person who still has a job because of programs that Obama has funded. She is an employee of a government agency and she provide needed services for veterans. She is now the sole support for her family because her husband has been laid off.
The news is not all bad, but business is way down and money is very very tight. If a check does not clear as expected, it causes noticeable ripples. In the past, volumes were high enough that one check delayed in clearing was not a big problem.
Credit card companies are revising their policies and raising their interest rates and penalties. There is a growing incentive to move toward a personal cash economy. Pay for what you need and hold off on things you do not have cash for.
In our family, we find ourselves making decisions every day that limit our buying to absolute necessities. Eating out is a rare occasion. Much of the time we pack a lunch if we are traveling during the noon hours.
Household expenditures are limited to those things that will feed us and keep the house and cars running. Our business expenses are limited to supplies and services that will actually produce revenue.
The net result is that our expenses are being reduced to stay in line with our reduced family income. At the same time, we are doing everything possible to generate more income. I see a lot of families in this area doing the same.
I do not feel that borrowing money from our grandchildren will get us out of this situation and I wish that our current administration felt the same.
I do not think the stock market will turn around until the current administration cleans house and restores confidence that laws apply to elected and appointed officials as well as taxpayers. Continuing the current course of action could bring the Dow Industrial Average down to the 5000 range.
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