Friday, September 21, 2007

Are You Preparing For A Recession?

I'm sure you've all heard that squirrels instinctively store up nuts for the winter. Well, urban squirrels no longer follow their instincts. They've become so used to a year-round supply of food ( via our garbage) that you seldom see them scampering up a tree with a jaw full of winter stores. The new urban squirrel doesn't plan for lean times. But this is not totally the squirrels' fault. They're just doing their best to live in an un-natural environment.

And this reminds me of the economy.

For the past 3-4 years. the Bush administration has done all it could to convince Americans that the American economy was in great shape. They sited report after report based on "the leading economic indicators" and the rises in the stock market. But somehow all of their glowing reports did not reflect the lives of the average American.

Something was not right.

Yes, home ownership was up but only through the misuse of sub-prime and variable rate mortgages. People were losing their jobs to outsourcing and the corporate misuse of the H1-B visa program. The much touted increases in the job market were mostly in the service sector. Americans were realizing that America doesn't manufacture anything anymore. Companies were declaring bankruptcy to avoid paying employee pensions. People could not afford healthcare. Wages were frozen, if not dropping, but the President was encouraging Americans to spend, spend, spend.

Many people have seen the potential for an U.S., if not a global recession, coming for a very long time. They saw American's maxed out on credit cards, increases in bankruptcy filings, increases in home foreclosures, lay-offs, hiring freezes, the decline of the middle-class, and more. The warning signs have been clear.

This past Monday former US Federal Reserve chief Alan Greenspan said that there is an increased risk of a recession. This means that the countdown has begun.

Are you prepared?

Listen to this statement by Ron Paul during yesterday's House Financial Services Committee - hearing on "legislative and regulatory options for minimizing and mitigating mortgage foreclosures."

Get The Facts, Get Involved & Get Prepared.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.