December 7, 2007

Americans are doomed - A blog for my generation

History repeats itself, want to live without fear of losing everything you have in a time of recession, take notes from John D. Rockefeller. Live within your means.

I am 29 and have never seen a rainy day, my generation laughs at the old stories of hand me downs. In fact, I can't say I remember a bank shutting its doors. So here we are at the door step of a very long recession, full of home loans and bad decisions we can't afford, talks of gas prices climbing and no substitutes (Except for corn, which will only raises the price of food and other things involving the transportation, selling, and preparation of other commodities), dept like never cars, new furniture, new flat screen TVs, new "vintage" clothes, $10 lunches, $60 Dinners, $200 jeans, $5,000 suits, $50,000 cars, luxury vacations, RVs, cell phones, 800 TV channels, TEVO, Playstation 3, $120 Christmas trees, trainers, massages, housekeepers, Vespa Scooters, Harleys, $60,000 Boats, etc..point is most young Americans are not prepared...Rockefeller lived a modest life, within his means....insert modern day business leaders like Warren Buffet, and the late Sam Walton. Warren Buffet is content in a Cadillac, Sam Walton drove an old Truck until his passing (Being frugal is cool, its real..).

Now insert the loss of an American family just losing one job, which will eventually happen to many people. Eventually, wearing a suit to work will become the norm, as business will become hard and as I have been told by my father and his father many times before "During hard times skirts get longer and suits make a comeback." So when the average dumb American couple loses just one job, who makes the house payment, the car payment, the cable bill. What happens when Panera becomes too expensive for lunch and breakfast, fourbucks caffeine fix becomes a real bummer, and eating out every night isn't a daily thing, Sears becomes your store of choice to buy your suit, what happens to the flat screen you bought on credit at Best buy, your furniture you bought on a line of credit for the house you can't afford, how many RVs and boats are on sale by the banks that repo them for faltering loans (don't forget the bank is losing money...the bankers lose a job), you get fat because you can't afford your $100 gym membership,no more plastic surgery, massages, pedicures and manicures are done in house, Rent a center repos your flat screen, your wheel rims that spin, your speakers, your love chair, your refrigerator, your stove, what happens....? Here it is - the jobs that sell those items get lost because no one can afford to pay for them. Manufacturers, retailers, and logistics companies suffer due to low demand for goods and high gas prices, truckers go out of business, insurance, loan, and advertising accounts suffer due to businesses going belly up, you guessed it the snowball effect....

Don't be fooled a blood bath awaits. The amount of dept and bad decisions in our society is absolutely insane! Not to mention the way we seem to prolong the inflation conversation.

Rockefeller, did it right, he just kept life simple:

He invested in Staples:
1. Kerosene for Lamps
2. Oil Refineries
3. Railroads

He lived modestly giving money to churches and philanthropies, in lieu of the fancies of life. Hold on tight America, hunker down and prepare for the worst. Simple fact is the government can't bail us out, if it does.... insert our outsourcing jobs and the booming economies us Americans helped to build in other countries like China and India (Search google about this too many links to pick from for this blog). Who owns who, and who will help the Americans in a time of recession? If our country does hit a major recession what will happen to the guess is the world keeps turning....don't get caught spinning yourself - balance your check book and keep it simple stupid.

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