My Take on the Economy

Please keep in mind that these “views and opinions” are mine and not necessarily those of Resource One Credit Union.

My last blog talked about the many different sources of information on the Economy. It is almost impossible to turn on the television or radio and not hear something about the Economy. Not only do you have those sources of information, but also the whole – World Wide Web – thing going on. In this blog, I will attempt to reveal to the reader how I see it.  Again, I am no expert so please do not blow-up the comment section telling me what an Idiot I am on this subject matter.   I know there are people out there writing on this subject matter with far more letters in their signature line than mine. – Phillip Crocker, CCUFC (See not that many…)

You have probably heard certain groups out there who are concerned about the environment.  Then you have probably heard or seen those who are appalled by what is happening to the environment.  You may have heard them say something like, “What gives them the right to drive big SUV’s that drink up so much gasoline and diminish our natural resources?” or “We do not need to drill for more oil and ruin the environment.” People are passionate about their beliefs.  Whether those folks stance on the issue is correct, to you, depends on your own beliefs.  The point is that we have heard at one time or another folks that are upset over something that is contrary to their beliefs or opinions.

I have a passion for helping people.  I help them manage their cash flow and guide them to a positive financial outcome. Often, I am concerned over how people mismanage their money.  I do not let my own beliefs influence my guidance towards our members achieving their own positive financial goals.  That would not be right on my part.  “However” (Oh no, is he going to negate everything he just said?) I believe that in this type of forum I can interject some of my own beliefs into my writings.

My overall concern for this whole “economy mess” comes from the standpoint of the consumer. Obviously, there is plenty of blame to go around for our poor economic condition as a country – heck even the world’s economy.  However, I want to talk about how the consumer has played their part.

Everyday I see people who are barely getting by.  Each one of them has a different story to tell as to how they got into their current financial state.  Some of their stories and financial situations have similarities among one another though.  The one constant I see time and time again is that they have overextended themselves.  For whatever reason, they have gone out and made poor decisions financially.  I realize that almost no one actually sits down and says, “Hey, I really want to spend myself into a huge problem financially.”  Over time though, I have come to the realization that our current economic mess or “The Economy” is due to consumers not making wise choices with their money.  This has nothing to do with investing money or the stock market. That would be an entirely different discussion.  Consumers have gone out and over extended themselves and not considered what could actually happen to their future.   (Step-up on Soap Box)  Those that went out and ran up to much debt and thought about its impact on their future and still did it anyway – shame on them. (Step-down)

To many consumers have run up an extraordinary amount of debt over the past (__) years.  “Now” has become the time to start paying for those choices and decisions. (i.e. Economy) For the most part, people are now going to be held accountable for their actions. (Or at least until the “economy” gets good again and we all forget what has just happened.)  That is, it will be much more difficult for folks to borrow money and over extend themselves.  The banks are tightening up their belts and making it more difficult to “get a loan”. This financial accountability has many feeling quite uncomfortable.  “The net result of consumer debt and their inability to pay it back is now reflected in our financially strapped economy.”  I am sure someone out there has coined that phrase at some point. (If not then its mine.)  Again, I am not naive enough to think this is the only reason for our tough economic times.  A lot of people have had their fingers in the pie, ate the pie, and now collectively we have a huge stomachache.  Let’s take some Pepto, setback, relax and digest.  Now is the time to stop consuming, start paying down our debts, and start something amazing – Saving.

 Your Thoughts???

 - Phillip