The majority of Americans believe we need to do something to stimulate our economy. At the same time the majority of those same Americans are skeptical about the proposed stimulus, if it will work, or even when we will see results.  Most Americans are just scared.

I believe if we do something it will soften our blow temporarily.  But it in no way saves us from the full force of this economic mess. Nor does it correct the very problems that created the mess.  The hard honest truth is that greed created this monster.  Politicians were greedy for votes and encouraged, actually legislated, an ease in lending practices, that were supposed to help "poor" people buy homes, they deserved to own?!? Then the sharks started circling and third party lenders like Lending Tree emerged.  Their purpose was to find you a loan at another bank who would assume the risk. Then they made a profit because  you and the bank would pay them money for arranging the loan.  These Instutions held little to no risk. Business was booming. Four years of absurdly easy credit to people who could only get credit at the local rent a center began.  Now we were fleecing homes instead of Plasma TV's.  The consumers soon jumped on board and agreed to loans they didn't really understand or bought more house than they could afford.  Someone said it was okay so instead of going with their gut they allowed greed to the lead the way.  Soon this "good hearted" idea became an economic disaster.  Banks saw the risk before it happened and did what they always do, they bunched and sold loans.  They relocated the risk to someone Else's pocket book. 

All the dominoes began to crumble and average people could no longer pay for the things they had purchased.  As they struggled to make the monthly bills more and more expenses, typically credit, went unpaid.  With no revolving money coming in the door the stability of the banks and credit markets began to unravel.  As quickly as we set up the dominoes it only took one falling down for the rest to follow suite.

Now we all stared at the chaotic stock market dumbfounded asking "How did the Government let this happen and what is the Government going to do to fix it?" 

This is where I feel the American people are deceiving themselves into believing an entity with no real revenue, solely reliant on the revenue of prosperous citizens, can magically make this economic crisis disappear or hurt less by adding more bad credit to the growing pot in the name of "economic stimulus".

A bigger deficit may seem necessary but it will only be a band aide unless the American people decide that we don't have to keep up with the Jones.  We have to realize their is a difference between wanting something and deserving it.  Hard Work and ingenutity is the key to success because it makes money every time thus spinning the revenue wheels of our Government.  While entitlements are modern day slavery holding a lower class of citizens at a politicians mercy based on the idealogy the wealthy will always be able or willing to provide.

That is why we have to start with our personal finances because we bank roll big brother and we truly are the economy. We the people grease the wheels of this economic stimulus.  Without  consumer fiscal responsibility their is no revenue left to draw from for the government, so then what? Their is no way for Big Brother to bail us out. 

Like it or not this mess included the American people making a mistake and it will take the American people going back to the days when we saved money for the things we wanted instead of providing ourselves instant gratification.  It will take us going back to the good ole days were you saved for a down payment on a home, you even bought a "starter House" in order to work your way into that "dream house".  You didn't borrow money on a whim because you understood that meant you were a slave to your lender.  You certainly didn't enslave yourself to other countries who didn't see "Democracy" the same way you did. 

No, it is time for Americans to live on the wages they earn, nothing more. It is time for Americans to tell our Government this is how they will live as well.  We will no longer bank roll Duck ponds. If the cities want them they will have to ask the taxpayer in their counties.   If a lobbyist wants a few million for researching the mating habits of walrus's, they to will have to get in line for a research grant.  No free money------- everything is earned and everything is truly pay as you go.  If we balance our checkbooks we force the Federal and Local Governments to do the same.

 If we continue to believe that massive credit is safe; then we always end up back here when credit can't be paid back because our plans didn't work out as  planned.  From time to time we have to do what's hard and tell that little kid in the mirror, NO!  I don't have any money.   If you want it earn the money!


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Feb. 10, 2009 at 12:21 PM

Honestly it's NOT that I disagree with you, because I don't (I think people have a huge problem living within their means) but unfortunately it's a little late for that IMO.  Hard to live off the wages you earn when millions are now earning NO wages. 

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Feb. 10, 2009 at 12:27 PM

I totally agree with you about folks living within their means, its a HUGE problem in America and I think its taking our current crisis to make some folks understand that you simply cant have it all, you HAVE to live within your means or you loose your house, or car or whatever.....I dont know if im completely sold on this "stimulus" package or not, I dont think it matters because it WILL eventually pass I believe and I do think that something needs to be done, although ideally I wish it could be handled another way, things have gottne too far gone and too bad that some sort of action needs to be taken....BUT, you do know that President Obama AGREES with you about folks living within their means, he has said it on MORE than one occasion that he believes its a big problem and that we ALL need to realize the error of our ways and change the way we live in that respect.

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Feb. 10, 2009 at 12:31 PM


It is truly a double edged sword, but at some point we have to ask "Which way  will do the least amount of damage?"

I'm very uncomfortable with the idea that we are going to allow our children and grandchildren to dig us out of this mess instead of taking the hard licks for ourselves. Instead we just want to spread them around or pass them on to others so we can continue to live as we like.  We know what the right thing to do is but it's hard and scary. We still don't want to confront the beast which is the "consumerism" of our society.   

If we don't do that, then America will continue down this path into oblivion.  No other countries lives the way we do.  Only in America is "frugality" weird. 

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Feb. 10, 2009 at 12:33 PM

Great post. For some reason, people feel a sense of entitlement now. They want what they want now and are unwilling to work for it. If any of you are familiar with Dave Ramesy, he is right. We need to start buying with cash only and no more credit. There is nothing you need right now that badly. In his class, he tells the story of a young couple who were clients of his. The man worked his way through college (yeh, actually worked hard so he would not need loans). He never allowed himself credit cards. He graduated debt free. When he married, he and his new bride took a garage apartment. It was very small and they furnished it with garage sale items. Now, this young man was making about $60K a year and his wife was making about $40K. They made more than enough to "buy" a house and furnish it. However, they lived this way for 5 years. At the end of the 5 years, he and his wife were able to pay cash for a home. No mortgage. He was also able to hand his wife $50K cash to furnish it with. Since then, because they were wise in the beginning, about every 5 years they have been able to upgrade their home until they could afford their million dollar dream home. Paid in cash. They did this without making any more than the average middle class couple. Unrealistic? Nothing is unrealistic if you set your mind to it.

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Feb. 10, 2009 at 12:36 PM

I agree with Aurorabunny.  I also think it's going to become A LOT worse.

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Feb. 10, 2009 at 1:00 PM

Agreeing that its going to get worse than better in the short term, and eventually it will correct itself in the long term.  History has shown, that recessions do correct themselves.  Obviously the banks and auto industries have never been heavily included in the past recessions as it is today, and the housing crisis can not turn around if 3.5 million people are with out jobs.  (My stomach hurts when I think about that!).

However, I do want to make one comment.  Didn't Obama get elected into office in hopes that he can "change" the direction of our country?  Not leave a trillion dollar debt for our children?  Which is what Washington has been doing for years.  My other observation is this:  In NY state alone, the number of millionaires have decreased by 4700+ (don't remember the exact number, I read), but that means its 1.2 billion dollars less for the revenue needed to make up for many programs that was to be incorporated.  Millionaires are cutting back ~ I know because my husband works for a private estate.  Yes, they are "filthy rich" but they are also very frugal with their money.  If there is no money flowing into them through their company, then they do not flow it into the economy.  They have cut back on lawn care and other personal maintenance, which means less for those people. 

Its not an easy solution, but I have said this before, and will say it again, I think its healthy for companies, banks, etc to go under, to merge, or to plain close their doors.  Its where innovative and creative technology is produced.  People start to count their pennies and THINK, how can I tap into a need that people want or need.  Use Daycare for an example ~ how many times have I heard, Daycare is so expensive.  Well, in my opinion, why aren't there people offering lower day care fees in the area where its high.  Do a research of the different facilities in a 30 - 50 mile radius, and come in just under the lowest pricing.  Not an average, but the lowest pricing, will be very appealing.  Offer just the same amount of quality care, etc.  I have often taking children into my home on a temporary basis, at a severe discount pricing, just to help out a parent with the expenses.  Which means, they basically are paying $10.00 a day.  This allows me to provide snacks only, and allows them to feel like they aren't taking advantage of me.  I play, I feed, and I teach them.  But since I am NOT a daycare provider and its not what I want as a career, I call myself a Per Diem babysitter.

Let's just  hope the Infrastructure and Transportation jobs that Obama states will create jobs, will get the economy jump started.

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Feb. 10, 2009 at 1:15 PM

As someone else mentioned I don't know that I'm 100% sold on the stimulus package, however I also do not think the "Ignore it and it will go away" strategy that some are pushing is a valid solution either.  So I'm not sure what the solution is.....

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Feb. 10, 2009 at 2:16 PM

Well we have the stimulus package!!!!!  I was really hoping that for once Washington would actually try to do something right instead of just doing something to do something.   If we wanted a job stimulus package then we should have just done that.  This bill is a nightmare spending spree with no direction. Obama may as well just flown Air force one across the USA dumping 900 billion dollars scattering in the wind.

That might have been a better plan! LOL  At least some people who needed it would have a real chance at getting  some money. 

Perfect nothings perfect, but come on this is the best they could do! 

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Feb. 10, 2009 at 3:29 PM

The fact that the stimulus bill that was passed, still lacks "jobs creation".  However, I have to admit, listen to Obama speak down in Fort Myers ~ he is doing all he can to be behind this plan ~ and if it doesn't work, then he will be held accountable.  He will be judged at that time, just doesn't want to be judged at this time.  

To me, this is the only sensible approach to take, and is leaving room for failure.  But isn't this where the phrase, Its going to get worse before it gets better comes into play. 

Hold on America, and get ready for that bumpy roller coaster ride.  If you Have a job, hold onto it.  If you don't have a job, know the government IS SUPPOSE to help you maintain your dependency on them.  Because part of this package has lots of extensions for the unemployed.  As for individual states, watch out.  You think your school district wasn't providing now, wait until the new budget cuts.  Our district (which is in the top 10 districts in the NYS) is having a meeting tonight, and we already know what the "rumors" are spreading around the community.  Schools will close, teachers will be let go, and bigger classrooms, all if the budget doesn't pass.  Cut back, cut back, cut back.   Education was to be a top priority in this Administration! 

 Well, it looks like parents better be prepared to teach their own kids much more than they already do, And we have to face reality, there are just some parents that don't have a clue on teaching their children.  Because 4 day school work is also in the revised school budget cut backs.  That effect alone is going to have a snow ball effect on families here.  From paying for extra day care to still paying higher prices for gas, food, and other necessary commodities. 

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