Economic Fear

Heather says:

Yesterday I monitored the news as the House of Representatives voted down an economic bailout package. Wall St.’s reaction was swift and concerning, but the reactions I saw through various social media platforms ran the gamut from logical and relevant to, “The sky is falling! The sky is falling and a piece of it landed on my tail!” I’m paraphrasing of course, but I did chuckle when I saw someone suggest that it would only be a matter of weeks before we are all starring in a Mad Max movie.

What can be done by average Americans?

  • Call or email your Congressman and let them know whether or not you agree with their vote on the bill and why. There will be similar bills discussed in the very near future.
  • Do not make large financial decisions without discussing it with a trained financial advisor, emotions are running high and any rash actions could have long term consequences.
  • Ensure your performance at work is stellar. Management worried about the bottom line will be less likely to tolerate poor habits such as tardiness.

Take heed, I am not suggesting there won’t be serious economic consequences. I am stating that panicking is not the answer. Educate yourselves and take a crash course in frugality. 

Finally, remember that practicing a spirit of gratitude and generosity with the things we do have will much to improve our perception of many situations.



10 Comments

  1. ThatBobbieGirl on October 18, 2008 at 10:06 pm

    The best thing that congress could do would be to repeal ever law that the legislature has ever passed in the history of the country and then go away so we can start over.

    (and I’m only half-kidding….)

  2. Heather on October 2, 2008 at 7:01 pm

    We’re having serious Princess and the Pea syndrome over here due to our stash.

  3. Mom of three on October 1, 2008 at 3:42 pm

    Don’t put gold under the mattress. You’ll lose all kind of sleep that way. Bury it in the backyard. That way future generations can dig it up and use it all over again.

  4. Heather on October 1, 2008 at 12:27 pm

    Maybe I should have linked to Dave Ramsey’s ELP list. My big point is that someone shouldn’t sell off their investments and put it all into gold or stuff it under their mattresses.
    I respect Dave Ramsey’s economic principles and wish more of America did as well.

  5. JayMonster on October 1, 2008 at 12:23 pm

    I know what you are trying to say, but I can’t help but laugh at the “talk to a trained financial advisor.” Aren’t they the ones that caused this? 😉

    OK, now for a useful tip. And this is one that I find surprising more people aren’t doing. Got your in a local bank savings account earning 1/2 percent? Check into the online banking places like INGDirect or EmigrantDirect that offer much better interest rates for your money.

  6. Teresa on October 1, 2008 at 7:17 am

    Ask yourself why the media wants you to be afraid. Open markets have a way of correcting themselves relatively quickly (I think the estimate I’ve heard bandied about is 12-18 months for this little upset), but when the government gets involved it can take forever. *sigh*

    Which brings me to my point, they want you to be afraid so you’ll tell your congressperson to support a bailout. Take it with a grain of salt.

  7. Judith on September 30, 2008 at 3:57 pm

    I agree with Mom of 3 …………… this has been coming for a long time. Those of us who live pretty low-to-the-ground anyway (read: we have little money) know how to survive this because we’re used to making do/ using up / doing without / making good stuff out of very little.
    At our house, we’re continuing to make menus, recycle, have fun without spending a lot of money, concentrate on family and friends, be generous to those we can help, and enjoy life. We are cutting back even more on spending …… and are trying to build a larger financial cushion.
    One hint from us ……….. we’ve discovered that eating out is really expensive compared to cooking and eating at home, but when we do want to indulge, we often go out for coffee and pie at our local (favorite) diner. $8.00 spent instead of over $20. And still fun to do with my dear husband!

  8. Lisa- Domestic Accident on September 30, 2008 at 12:43 pm

    This is exactly why I don’t watch the news.

  9. dan on September 30, 2008 at 10:05 am

    Piece of advice: Don’t be TOO stellar at your job, unless your boss is also stellar. If you have a less-than-stellar boss, standing out in a visible way will make HIM feel insecure in anxious times, which means YOU’LL become a target.

    If you’re trying to survive coming layoffs at a mediocre employer, survive by being more mediocre than everyone else. If you can stand it.

  10. Mom of three on September 30, 2008 at 8:24 am

    Stop buying more than you can afford. The reason this is an issue now, is these lenders loaned people more than they could afford on houses that weren’t worth what they were paying.

    As a nation, we have got to stop spending money we don’t have.
    Our house has doubled in “value” since we bought it 13 years ago, despite the fact that we have done very little to it but live here. Personally I think this is just an economic readjustment that has been long overdue.
    Gas was 107.9 the day I quit work in 1990. It stayed that price until 2006. That’s a long time for the price of something to stay the same.

    Sure when money is tight, it hurts. But things could be far worse than they are for most Americans right now. Don’t believe me, ask any missionary to Africa.

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