Comments on: Recession: A Self-Fulfilling Prophecy

By: Scott

Scott — Thu, 09 Oct 2008 19:59:31 +0000

The other perspective is that we’re starting to unwind the ~ 40 year credit boom that started when we left the gold standard in 1971. We’ve been exporting our debt since then, and basically living further and further beyond our means as a nation — dependent on foreign banks and investors to supply the credit we’ve been spending.

As we start having to live within our means, it’s going to have a significant impact in our daily lives. To think otherwise seems a bit foolhardy.

Scott

By: cchiovitti

cchiovitti — Thu, 09 Oct 2008 16:06:23 +0000

I’m saving every little bit I can right now. Why? Christmas. I feel that one of the truly positive things that I can do for the economy right now is to help out as many small or independent businesses with their holiday sales as I can. I’m shopping for all of my kiddos gifts through Etsy – and I vow to spend all of it (OK, it’s only $300 so far, but still). It’s every bit of “extra” that I’ve been able to come up with, but pumping it back in to the economy at a critical time of year will help, even if just a little bit.

By: Joseph

Joseph — Thu, 09 Oct 2008 15:37:53 +0000

Good call Pete. It really does come down to that. We are facing financial difficulties for sure, but our own fear makes everything a lot worse than it usually is!

Thanks for the great comment!

By: Pete

Pete — Thu, 09 Oct 2008 15:31:12 +0000

I think a huge part of this current crisis is fear. People fear that the market will go down - so the market goes down. They fear there will be a recession, so they don't spend - and there is a recession. Stop being so scared people - things will be fine! Petes last blog post..Losing Money In Your 401k? 6 More Ways To Make Some Extra Money!