Emotion, Logic, Perception and Reality

What a financial mess! Who is to blame? Some say the President. Some say Congress. Some say the SEC. Some say the government bureaucrats who are responsible for overseeing the financial world. Some blame the former Fed Chairman Alan Greenspan. You can blame who you want, but the bottom line is the blame rests with the US consumer.

In trying to provide the American Dream the consumer demanded financing with no money down, and the financial community felt stressed to play its part. Consumers in the US stopped saving long ago; therefore, they had no money for a down payment on items like autos, jet skis, boats, houses, flat screen TVs, personal computers, and finally groceries.

Somewhere along the way we lost sight that hard work is the reward for being able to purchase such items. The US consumer became the NOW society. To meet the demand the financial community responded with 'credit cards', no money down auto loans, and no money down home loans. Then the interest only loans were invented to help consumers get more of the goods and services they craved. Consumers spent their paychecks long before they ever actually earned the money for their actual labor. Why? Had to have it now! But wait - thought we were rational in thought, and someone rational would not buy something they could not afford. Not true. If someone is going to provide you the mean, the way and the opportunity to get it now they took it 'hook line and sinker' with no questions asked. Except, what is the payment going to be - yea I can afford that. Forget "A penny saved is a penny earned".

It is totally amazing the number of US consumers who actually think they are going to get something for nothing. Before you go blaming all those other folks, look in your closet to see how many items of clothing, shoes, jets skis, autos, TVs, computers, cell phones, furniture, etc. you really don't need and should have never purchased. If you purchased it just to have it then you helped create this financial mess.

Now we have to bail out the financial markets before it REALLY hits your pocketbook. Oh, least we forget you don't have a pocketbook for you only use plastic these days. If some type of bailout does not take place then the folks working at Pilgrim's Pride along with those working at other businesses will lose the very thing that started this mess to start - the PAYCHECK. If businesses can't borrow money then they may not be able to make the payroll. If they can't make the payroll then you can't send in your minimum monthly payment to the 38 + creditors to whom you owe your paycheck. Can't pay the utilities, can't put the gas on the plastic card for the oil company shut you off for non-payment, nor buy the groceries cause all your plastic cards got suspended for non-payment. Before you blame all those folks you better look within your own house to see how much you contributed to the financial boondoggle.

Larry Tabb a serious financial guy said “to withdraw support for the Paulson plan because it may benefit a few organization that got in way over their heads, let’s not bust up and tear apart our financial system. Let’s certainly not bust up our country. And let’s not cut off our nose to spite our face. For that, this country and the American public need leadership: bipartisan, unambiguous and morally steadfast leadership. Not a group of folks fiddling around…. ” Folks, the US consumer did the fiddling by buying when they had no business buying. If we did not want so much in the way of material goods and services then I don't think you would have ever seen a financial mess as we are seeing now. If you don't like the Paulson plan then you better come up with one quick are you may not get that next paycheck, and you will be living off that savings you never really started.

Check the emotion and the perception at the door, and review the logic and look at the reality! The US consumer got us here, and the US consumer can move us forward.