And just imagine! We are still in our infancy. Considering our occupation of the planet as represented by a single year we have yet to witness a sunset at the close of business on the first day.
Mind you, there were a couple of days in November when I thought we were coming close to the dark side with our latest financial experiment. But we cheated the wooly mammoth once more.
This, too, will be a chapter in the story of our survival that will be told around campfires for generations to come. Listeners will laugh at our primitive instincts. And marvel at our crude tools.
Not to worry. Adam and Eve got a bad rap from an earlier generation, too. Instant gratification got them into trouble. No surprise we fell for it…again! Who said history repeats itself?
Surely this must be genetic. We are doomed to repeat the mistakes of the past some of the time. After all, haven’t we been proved irrationally exuberant? No Homo economicus among us.
This is unfortunate because we really needed someone on the Wall Streets, Bay Streets and Bond Streets of the world to know a lot more than he did. (Can Nobel prizes be rescinded when winners behave like such losers?)
What is strange to me, however, after all the talk of consumers choking on their debt, is why I can’t find a place to park at the mall?
Adam and Eve are everywhere there’s a 50% off sign. The Garden of Eden has never looked so cheap. Flat panel toasters are practically free. Buy a car and get a house for a $1.00. The deals are awesome, folks.
Of course, if you’ve been tempted to explore my book, SAVING Is for Suckers, you’ll remember I’m no poster boy for rational budgeting. But I confess the events of 2008 have got my attention.
I am truly grateful for the mortgages I still pay because (just as the other Bill said) “I could”. Make that “I can”.
My own crazy spending habits have long since become archaeological records. And like the bones of the great dinosaurs I can piece them together when I want to scare myself.
But there is more than enough fear on the street to keep my spending in line on the vital few things that I don’t want to lose. No saber-toothed tiger hiding behind a hedge fund is going to jump me.
I’m ready.
Copyright 2008 William M. MacKay
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( 3 / 144 )You guessed it. TIME chose President-elect Barack Obama.
But what about the CROOK OF THE YEAR. Now that’s news.
You probably have a villain or two in mind.
I’m fingering a Wall Street suit.
Although the jury is still out sifting through the wreakage, other candidates are of the sub prime variety. And there are many likely.
Regardless of who else is hiding under a bailout I’m going with long time financier Bernie Madoff, alleged to have vaporized $50 billion of other people’s money.
It seems to be so easy. Even knowledgeable people and charities were sucked in. What chance has Joe six pack in all of this?
Vacant Nests
The nest eggs of middle-aged folks (over 45 years of age) have been emptying faster than the Treasury can print money. Contributions to 401(k)s are on hold for an estimated 20% of Americans (AARP Survey).
The trend is international. Contributions of eligible Canadians to their RSPs were drying up even last year.
The Problem
Of greater concern is the money being withdrawn from pension accounts to meet today’s expenses. What will be left to replace your income during retirement?
The Solution
Put a lid on your monthly expenses. How? Watch those impulse purchases every day. EVERY DAY! You will be surprised by what you can live without. It’s easy when you have a clear idea of what you really want most and don't want to give up or loose completely. Try it.
It is often these impulse purchases that are the crooks stealing you blind.
Copyright 2008 William M. MacKay
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( 2.9 / 162 )President Bush ducked a scornful communication from an Iraqi reporter today that was delivered by a shoe hurled at him during a press conference in BAGHDAD. Make that a pair of shoes.
In the Middle East such a demonstration is considered a supreme insult. The shoes were accompanied by verbal abuse, calling them a “goodbye kiss” for a “dog”.
Polls here indicate most Americans also think the Iraq War was a mistake. How many would throw their shoes is doubtful given the current state of the economy. Americans could sure use the cash spent on the war this past five years.
And speaking of abuse, just imagine what the public would like to toss at the Big Three Has-Beens should they ever get to respond to these innocents’ public plea for an auto sector bailout. You can bet it would be more pungent indicative of our contempt for their stinking business smarts over this past two decades.
The majority of citizens on both sides of the U.S.-Canada border oppose a bailout. It’s hard to believe given the animosity to Wall Street and the banking sector but there are indications from surveys that more money to these financial infidels is a preferable alternative.
The mood among Iraqis, Americans, and Canadians appear to be at a supreme low. We all want to throw stuff at the leaders behind this colossal mess.
If the shoe fits, wear it.
Copyright 2008 William M. MacKay
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( 3 / 146 )News from President Elect Barack Obama today warns that the recession is going to get worse before it gets better.
His giant step forward will be the biggest financial investment in the country’s infrastructure since the fifties when President Eisenhower funded the interstate highway system.
His no “what me worry” attitude about the budget deficit is surely at odds with what the rest of us are feeling about our budget deficits.
And his “We will emerge stronger than we are now” may be a confidence builder America needs to hear to bolster morale. But this looks suspect for many who now have few options left to protect themselves from the employment crisis unfolding.
With past and present financial burdens unduly shouldered by blue collar and middle class workers, many are cutting spending to save money and weather the coming storm. If everyone does the same Obama’s prediction of a worsening recession seems a mathematical certainty.
Copyright 2008 William M. MacKay
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( 3 / 165 )Has there ever been such a strange interim as this between newly elected governments in both countries at probably the worst possible time as the economy limps into the New Year?
You have President-elect Barack Obama on a tether for almost 60 days as lame-duck President George Bush tries to salvage something from his reign of terror.
The equally new minority government (again) of Prime Minister Stephen Harper faces a vote of non-confidence just days into its mandate and a potential parliamentary crisis.
Embarrassment of Style and Substance
The apparent style of Obama and Harper reflect a similar gulf between Toyota and General Motors and how both do business to win votes (sales).
Obama seeks out the best minds to build a consensus and fiscal strategy. Prime Minister Harper has chosen what amounts to “elective dictatorship” with his approach to Canada’s response to not just the economic crisis but also to the dissenting voices of his political foes as he tries to eliminate their public funding.
Hang On to Your Wallet
The auto sector crisis straddles international borders. What one country does with its bailout/handouts/go-forth and multiply tax dollar generosity affects the other. If there ever was an opportune time to re-direct the auto sector and bring it back from the brink of oblivion it is now.
These national and international issues are not as remote from your pocketbook as you may think. Spending in the auto sector has a huge multiplier effect throughout both countries, not just the communities where factories are located.
The Courage of Hope
Let’s hope that sharp minds and cool heads prevail on both sides of the longest friendly border in the world as we tackle this issue.
What an opportunity this crisis offers to remake the domestic auto industry into a viable ‘new’ business at a price we can all afford when the true costs of its inputs and outputs in this era of the green revolution are factored into our financial support.
Copyright 2008 William M. MacKay
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