Posted 6 months, 23 days ago in 
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If you read, listen to and watch the national media, it sounds like the economy is coming down around our ears. Is it? Does anybody really know how bad things really are?
I have a modest pension income and depend on supplementing it with Social Security and IRA investments. I’m comfortable but definitely not rich. I feel no monetary pinch. There has been no change I can feel.
If I pay attention to the media, I should be — and am — very afraid. If the bottom drops out of the investments my pension is based on, I’ll be in the same position my parents experienced in the Great Depression. Same goes for my own IRA investments.
I did absolutely nothing to cause it. No debt other than a mortgage from which I didn’t take cash by a re-mortgage for living beyond my means. Credit card balances paid off in full every month. No participation in wild, get-rich-quick schemes.
Nevertheless, I and most everybody else, might drop any plans for expenditures until I feel that my nestegg is once again “safe.” If everybody follows suit, that is exactly what will make the danger cries we hear prove to be true.
More than anything else, we are in a crisis of confidence that is being exacerbated by our modern 24/7 hour news cycle that has to have something to talk about constantly. The more we hear of impending disaster the more it is likely to be true if we respond in fear. Individually, it might make sense, but as a society it is as FDR said under different circumstances, “The only thing we have to fear is fear itself.”
If we go about our business as usual it can dramatically lessen the danger. The tools are available to straighten the financial industry out, as long as they are used, but it will inevitably cost us — or more probably our kids, and theirs — a sizable amount, as it did in the savings and loan crisis, but it won’t cost us as much as it would if we drop into a depression caused by everybody stopping what they are doing and curling up in fear and hoping things will get better.
Let’s hope that the highrollers, whose stupid actions brought this about will somehow suffer for the damage they’ve done. But let’s not make the damage worse by letting fear run rampant and just compounding the damage already done.
JOHN BORGEN
Grand Junction
6 Responses to “Crisis of confidence”
Posted March 18th, 2008 at 9:33 am Login to Send PM Report this comment
Mr Borgen, I would hate to say, or do, anything that would give your mind ease….
However, just bear in mind that it is a political season.
Since a republican is currently in the White House, the economy must be trashed purely for political reasons.
While thee are some weak areas in the nations economy, most are the direct result of the democrats in power promising to get rid of the tax cuts that fueled the economic growth during the Bush years.
The investors are taking what they can get now, and probably moving a large percentage of their funds into offshore investments to protect them from the power hungry democrats that may be elected in November.
So John, if the democrats end up in the White House, count on a recession.
If McKainnedy gets elected, he will be more than willing to deal with the democrats, if they still control congress.
So count on a recession.
IF both parties lose and we get a new face, life will truly be interesting….
Posted March 18th, 2008 at 4:26 pm Login to Send PM Report this comment
By most accounts (except G.W. Bush), we ARE in a recession.
Posted March 18th, 2008 at 6:53 pm Login to Send PM Report this comment
But Roland, most accounts come from the main stream media.
You know, the people that cannot spread bad news fast enogh, even if it maybe isn’t quite accurate or fact checked.
I’m not in a recession, are you?
None of my neighbors are in recessions…
Posted March 18th, 2008 at 7:19 pm Login to Send PM Report this comment
I’m not in a recession! I don’t even know anyone that is in a recession.
Posted March 19th, 2008 at 8:05 am Login to Send PM Report this comment
It’s really not a point of argument.
But, glad to see we have a couple of qualified economists here.
If Bush says so, it must be true!
Posted March 19th, 2008 at 8:58 am Login to Send PM Report this comment
No Roland, you know better than that.
Fiscally, Bush leaves a lot to be desired.
On the domestic front he could be referred to as less than adept.
But, as the old saying goes, even a stopped clock is right twice a day.
And we don’t need to be “qualified economists” to look at our personal financial situation and determine whether or not WE are in a recession.
Perhaps you shouldn’t meet mikey for coffee anymore? It’s starting to rub off.
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