Be Good Little Consumers...Spend!

For many months now we have been inundated with the news of massive loses being sustained by the banks, mortgage lenders and Wall Street investment houses. You know the names, Citi, Bear, Fannie, Countrywide, Freddie, Merrill, BofA. These Masters of the Universe have managed to lose $100billion dollars so far, and some experts suggest perhaps another $200-$300 billion yet to come.

Of the many bad things to result from these asinine investments and there are many, the one to affect the average American the most is the drying up of available funds from the two sources most drawn on by American consumers for the last 5 years. The first is the unavailability of anymore borrowing on the equity from the ATM cash cow formally called home. The second is the tapping out of the lines of credit available from plastic. Along with these two pieces of bad news is the unarguable fact that Americans don't save for the inevitable rainy day, nothing to fall back on. Food costs are up, oil was around $100 dollars a barrel earlier this month, and most of the talking heads have stopped wondering about a recession and have now taken to betting on whether it will be short and shallow or not.

What we have is a slowing economy, a tightening of credit, rising food and energy costs, some serious signs of inflation on the horizon, falling home values and indications that it will be some time before things get back to normal. So what advice do we get from our leaders and elected officials...don't worry, be happy, borrow more if you can and spend, spend, spend. We're being told by the Fed, the Treasury, the Administration and both parties in Congress that we can save this faltering economy by personally spending more.

Now I ask you, does the admonition to keep digging when you are already in a hole seem like good advice? Granted, we will survive as a viable democracy and eventually see the economy get back on track. But almost all financial gurus agree that it might be a year or maybe two before this happens so wouldn't the prudent thing to do be to conserve your resources, cut back on all unnecessary purchases, pay on your debts but don't increase them and be as financially neutral as you can possibly be until you know how the economy seems to be going? How could "go spend more" possibly be anything but the worst advice you could get get considering the state of the current economy in the country?Think about it, why would your government want you to keep digging when common sense says you should stop?

Why are they sending you and your children perhaps a $1000 dollars or so in the next 3 months with the hopes that you will spend it on something that you really don't need. After all, even if it turns out to be a $1200 or $1500 rebate all it will get you is some more crap that you know you really don't have a use for, particularly during this unsettled economic period. Save it! That's right, save it. Cash the check and then put the money in your sock drawer for a rainy day. Better yet put it in a 5% savings account, you can find one in every town.

Why should you? Because your government wants you financially extended and worried. It makes you easier to control. This $150 billion giveaway is a bailout for Wall Street but not for you, all it is for you is a chance for the powers that be to prod you into one more shovel full. There is no better feeling than waking up in the morning and knowing you are a financially prudent and not overly extended consumer. All Americans should take this money, after all it's yours to start with, and use it if at all possible to start a nest egg. Old fashioned? Maybe...but you will feel good about it knowing that eventually Washington will get the message that Wall Street, the White House and Congress may be home to a bunch of short sighted, greedy morons but you aren't buying it anymore.

Save your rebate and use these trying times to send a message to our leaders that you don't intend to support their greedy, nasty little spending habits anymore... not Wall Street's and not Washington's. Trust me, you'll feel great if you do!