Comments on: Clueless and Irresponsible Americans

By: Wil

Wil — Mon, 01 Dec 2008 21:10:33 +0000

I can’t belive the mindset of people who go shopping when there is a recession, spend more than they can afford, and ignore the possibility that they may the next to be laid off. I saw a news clip on CNBC of shoppers rushing into a WalMart and saw that each one of them was clearly, substantially overweight, and dressed in cheap looking clothing – and here they were, rushing to buy more cheaply made stuff. I think, in horror, of that clerk trampled to death by people like these in a Long Island WalMart recently, and think about how extremely short sighted, and addicted to immedite gratification many have become…. The author is right about this being a time to “hunker down”. An economy that depends on the population continually overspending needs to be changed.

By: Martin

Martin — Mon, 01 Dec 2008 20:25:19 +0000

Mike,

You are correct. After 9/11 Bush told Americans that their patriotic duty was to spend (or continue spending). Americans being true patriots went out and shopped for everything and the patriotic bankers did their part by lending them everything they wanted and more.

Americans are just victims and the rest of the world should send us more money so we can consume more.

Wendy,

I know the paradox of savings problem. It really shows how convoluted mainstream economics has become when they think in a massive systemic crisis of insolvency, they are urging consumers to and the government is taking on massive new debt. Unfortunately, the US and a number of other nations such as the UK need to go cold turkey.

But particularly the working poor and middle classes have to protect themselves and saving is the only way. There will be no bailout for them.

David,

You are right about cash. It is not so safe given the tendency by our government to begin printing money. Still paying down debt and building a nest egg of say one-year’s expenditures in cash and near cash equivalents is very prudent. Of course, being more scared than most, I have two year’s expenditures saved.

Hayden,

The fools on Wall Street have already made off with the loot. The person buying the iPod while close to insolvency is threatening the well being of her children. So yes prosecute the WS guys and confiscate their ill-gotten gains, but we need to take responsibility for our situations and do the right thing.

So yes WS fools bother me, but so do main street fools. When the hurricane is blowing there is on excuse for anyone to not prepare as best they can.

Martin

By: hayden fisher

hayden fisher — Mon, 01 Dec 2008 18:53:29 +0000

Those iPod buying parents don’t bother me nearly as much as the fools on Wall Street who are about to bonus-out millions of dollars to part-of-the-problem executives.

By: David

David — Mon, 01 Dec 2008 17:57:41 +0000

I agree with you generally although I question the safeness of cash as I wonder if a myriad of bailout plans will have a negative effect on the value of cash.

By: Wendy Waters

Wendy Waters — Mon, 01 Dec 2008 14:24:32 +0000

Your advice is good — if the majority do not follow it.

If everyone spent nothing and tried to liquidate anything they good to stuff cash in their mattress, most banks would fail, along with most retailers — the great depression would be back.

By: Mike L

Mike L — Mon, 01 Dec 2008 05:59:13 +0000

According to current economic theory, those folks deserve to be bailed out. They are doing exactly what the economists want us all to do: “Spend!”

Perhaps it is time to appoint Sheikh Saud Al Thani to the Board of Economic Advisers. He was once the world’s biggest spender (before he landed in jail).