I am sure you have been watching the news and
"talking heads" (so-called experts) discuss and provide their insight on
what has been going on over the past 12 or so months that has culminated in
the most recent collapse of the financial market. I thought I would
entertain you and provide you my insight from another "so-called" expert.
First I think it is safe to say a root cause may
be impossible to ascertain in the near term on the recent financial market
collapse. What I think can be safely said is that our out of control
government spending, the loss of billions on bad loans to foreign countries,
our government continuing to send dollars overseas to countries who hate us,
the Iraqi and Afghanistan Wars, greed within the financial markets on Wall
Street, and corporate officer greed based on personal profit taking instead
of strong business management acumen and disciplines, are all significant
factors incorporated into the recent necessity of the Federal Government to
spend an estimated $1.5+ trillion dollars of taxpayer money of which
the government doesn't have at this time.
Secondly I think it is very important to note
and further expand one of the primary reasons our government has been in
crisis for quite a long time is primarily due to their lack of fiscal
responsibility on managing the yearly federal budget. It is most disturbing
to me that our elected officials, at all levels, continually over-spend the
money received through taxation. I think we could go as far to say we are
again at a point in our history were we are positioned as "taxation without
representation". A balanced check book has always been a financial
fundamental that should always link the individual to corporations and up to
the Government at all levels. Why would Americans sit back allow the
government to increase earnings and retirement taxation?
Thirdly I think it must be said that political
power and political narcissism have been a problem for many years. In too
many cases our Government representatives do not operate within a strict
code of conduct and most importantly within the fundamental that they are
elected to represent their constituency with an unbiased personal view and
with a level of professional, personal, and business ethics that is beyond
reproach. I am not sure our elected officials can measure up to that simple
standard any longer.
So what will the affects be at the personal
level for all of us economically and financially? No one can say with any
degree of accuracy but one thing is for sure, as our Government continues to
ignore their fiduciary responsibilities, our financial futures will continue
to be at risk and in jeopardy of collapse. As the risk of impending
inflation continuing to rise in combination with our ability to keep pace
with the escalating cost of living, our standard of living will continue to
decline overall.
In closing: So what can
we as individuals do to protect our individual futures and families? 1).
With the financial markets in a state of confusion and uncertainty,
individual investors much be extremely conservative with our investments and
shy away from the stocks. 2). As best we can, we should focus on
eliminating personal debt. 3). We must reassess our standard of living and
where it is comfortable and practical we should reduce personal spending.
We have been unfortunately gloated by the media into spending money we do
not have or are capable of paying back. 4). At each election opportunity we
should ask those who are running for public office to clearly explain their
reasons for wanting to run for public office and ask them what makes them
qualified. 5). We should demand a high standard of performance and
representation from our elected officials and communicate with them often
and demand explanation for their actions. 6). We should demand "term
limits" at all levels of elected office. We should not have professional
politicians! 7). We should vote with our wallets and bank accounts in mind
and shy away from the hype of empty promises and unrealistic views. 8).
And lastly and most importantly, we should stop following without
questioning, stop being complacent, lazy, and not being involved in
our country's future, we should lead and not follow, and we should stop
accepting empty political promises and rhetoric and demand excellence
in public office.