My readers know I am an optimist. I see a glass of water as half full, not half empty. My entire life, I have always believed that if you worked hard enough and always did your best you would succeed. However, times are different now. I am sharing with my viewers my concern for our economy. Though I have shared my concern before, this time, I am listening to my own favorite economists and others who are saying the U.S. and the Global Economy is in free-fall with no end in sight. The stimulus package, though needed, is but a band-aid and will not stop this free-fall. Now more banks are failing and there is talk of Bank Nationalization.
. Robert Reich: "The truth is, no one has any idea how long this crisis will last or exactly how to reverse it. Anyone who says differently cannot be trusted..Financial stocks are in free fall because no one trusts financials any longer. A sell-off in bank, housing, insurance and other financial stocks has accelerated."
. George Soros: "the world financial system has effectively disintegrated.. there is yet no prospect of a near-term resolution to the crisis."
. Paul Volcker: "I don't remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniformly around the world."
. Lindsey Graham: "I'm very much afraid that any program to salvage the banks is going to require the government. I would not take off the idea of the nationalizing the banks."
It is clear, historians will look back and say we are in the midst of the 2008 -2010 Great Depression.
I ask all viewers and all Americans to start considering their options for the future. I don't want you to be fooled by some in government or in the media that are saying there may be hope to get out of this current mess this year or next. We all have to understand we are in the midst of a Depression.
Most of us still have some time. We need to start developing a plan in case you lose your job and your family has no income. Consider the fact you probably cannot sell your house. Even so, you can still make these plans and not negatively impact the economy.
Here are some simple suggestions:
1. Write down every penny you spend. That is, write down all your purchases, starting today. Do this for a month.
2. Once you have your list, make a monthly calendar. This will be your monthly plan. You can plan your shopping and your menus well in advance.
3. Figure out what you can buy in bulk once a month, things like Toilet Paper, canned/boxed goods.
4. Start clipping coupons. Also, if you shop at Wal-mart, they will match any low prices from any competitor. Just take their flyers with you when you go to the store.
5. This is the start of a monthly budget. Do some analysis. Decide what you need, what you don't need.
6. You will start saving money once you do this. So start saving as much as you can. Save enough money so that you can survive for 3 months if you lost your job.
7. If you do lose your job, you will probably qualify for unemployment. So on top of your 3 months savings, the unemployment will help you too.
8. Take any job. Don't think any job is beneath you. Remember, Wal-mart and McDonalds are always hiring. Think of the jobs your grandparents worked just to survive and bring you along.
9. If needed, bring extended family members who need help into your home and share costs until the crisis is over.
Don't wait for the last minute. Start writing down all you spend today. This is the easiest, yet most crucial step.
Finally, I think all of us personally remember the last 8 years and how we got here, so I will close with: "Thank you George Bush for eight miserable years of Economic Gloom and Doom and for getting us into this mess!"
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