Many economists have been mystified that even though the recession is “over”, American consumers have not opened their wallets and started spending again like they normally do at the end of a recession. News report after news report has encouraged Americans to grab their credit cards and to head out to the stores and start spending again, but it just is not happening. So why are things different this time? Well, for one thing there is a lot of fear in the air. Poll after poll after poll shows that faith in the economy has collapsed and that large numbers of Americans fear that things are going to get even worse for the economy soon. But for millions of other Americans there is another problem – they couldn’t spend more money if they wanted to. The truth is that living on credit for decades has caught up with us as a nation. Americans are absolutely drowning in mortgage debt, car loans, credit card debt and student loan debt. As wages have stagnated, credit has enabled many of us to pursue the American Dream and to live far beyond our means, but that doesn’t last forever. Now tens of millions of Americans are completely and totally tapped out. But without the return of the voracious American “consumer” there is not going to be a full economic “recovery”. (Read More...)
Credit Card Debt
No More Debt!
As we approach election season here in 2010, American voters are seemingly more angry than at any other time in recent memory. More than at any other time in modern American history, Americans are seeking out alternatives outside the “two party system” (such as the Tea Party movement) through which to express their anger. So why are the American people so angry? Well, the truth is that there are a whole lot of reasons, but one of the biggest reasons is the horrific mismanagement of our national finances that has been going on in Washington. The “Congress critters” have been piling up the biggest mountain of debt in the history of the world, and millions of Americans are now waking up and are now realizing that our financial future has been absolutely obliterated. We have accumulated a debt that is impossible to repay. In fact, it is rapidly getting to the point where it will become impossible even to service the debt. All of this debt is literally killing the American Dream. An increasing number of Americans now realize the horror of what we have done, but the reality is that it may be far too late to reverse the damage that has taken place. (Read More...)