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This Crisis is not Financial

While the stock market, housing prices, jobless rate, and falling GDP may point to a financial crisis, those are only symptoms of the real illness. Just as a doctor would never describe an overweight patient’s condition as, “a crisis of too many fat cells,” we must look to the cause of our problem if we ever expect to effect a cure.

The USA has gorged itself on debt, but even that’s not the problem. It’s yet another symptom of a society focused upon personal comfort and satisfaction, chasing an ever-changing vision of happiness, a narcissistic assumption that it was about us, and that “we should have it all,” and have it now.

In the past few decades we've shifted from a country of savers to one of spenders—binge spenders, drunken in our chase for the “good life.” Movies and television told us we could have it, and their ads spewed a never ending array of what we “needed.” With the latest gadgets our lives would become simpler, less stressful. With wondrous images they carted us off to faraway beaches with perfect sunsets and plastic people.

But the images were all a lie; the contrary was true. The accumulation of “stuff” created a need for more money, requiring that both spouses work, and work harder, longer. The constant demand for money kept us forever chasing a better position, more pay, to help us afford the stuff we had already bought. More money would take us to an even better lifestyle that always remained just out of reach.

We didn’t want the simple house of our parents; we wanted more bedrooms, more bathrooms, bigger kitchens, fireplaces, media centers, and three car garages. We weren’t satisfied with a basic car; we needed SUVs, maybe two, and a sports car for the kids. A vacation at the beach wasn’t enough, unless the beach was in Hawaii.

We wanted the best for our children and we bought computers, video games, cell phones, and other electronics, expensive clothes and cars; we wanted them to have it all, too, to have a better life, to have more than we’d had. And we succeeded—after a fashion. We spent more, went in debt more, and lived for the pleasure of the moment.

We had more and our kids had more; but the ever-increasing indebtedness, like a millstone, pulled us into an abysmal stupor and caused us to miss out of much of the enjoyment. We drugged our stress with alcohol, pills or the latest pop psychology that promised to restore us to “Nirvana,” and the children whose happiness and love we purchased, became strangers.

Of course this isn’t a universal indictment; but it’s more widespread than many are willing to admit. And it doesn’t apply to ME or to YOU. It’s those “other people” who have allowed their problems to morph into a crisis. But WE all have an obligation to help find the solution.

As our country and the world enter the crucial stages of a financial meltdown, many are reflecting upon lives spent chasing an elusive future utopia that could never be; and many are ready to get off the train. Some have begun to reconsider where they have focused their energy, their labor, and have begun to realize that life was never about the stuff. It’s about discovering our place and helping others; it’s about the choices we make and the lives we lead; it’s about releasing ourselves from fear and living and sharing the wondrous joys of this life; and it’s about today. We don’t have tomorrow. The good life we’ve been seeking isn’t in the future. We’ve had it all along.

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Posted by John Mulkey, Housing Guru on 06/09/2009 04:53 PM

Comments (147)

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147 Comments on This Crisis is not Financial

JUN

John,

I see you about and I like your post. The crises is a moral and spiritual crises. America was made for something better than conspicuous consumption. I am not against nice things or wealth, unless they pull you of the right course.

Gene - There's certainly nothing wrong with "stuff," until it becomes our primary focus.

STUFF,STUFF and More Stuff! Can't live with out all my stuff. Oops I am in debt way over my head for all this useless stuff.

John, well said, I really appreciate your article. It follows along a lot of the lines that Dave Ramsey teaches. Create a budget, live within it, spend cash. Some old silly thing about living within your means and building up to bigger and better things later in life.

Thanks

Robby

Great post!

AWESOME!!!!!!!!!!!!!!!!!!!!!!!!

THAT IS WHAT THIS MARKET TEACHES US. I LOVE IT. I HATE TO MAKE LESS BUT THE LESSON I HAVE LEARNED IS PRICELESS....................

I AM A SECOND GENERATION REALTOR AND SAID I WOULD NEVER BE IN A STATE LIKE THIS AND FOUND MYSELF LIVING IT UP WITH ALL THE (STUFF) I BOUGHT IN THE GOOD DAYS. HAHAHAA

John,

Good post. think about the way our government spending, don't you think another crisis is on the way?

John, when I saw your title I thought, "Nonsense, it is financial!" You've convinced me otherwise, you are exactly right. As a 55 year old I recall how frugal my parents were because they lived through tough times and remembered. I never really did until now, hopefully people of my generation and other current generation will remember and live more within their means. It would be the silver lining if they did.

The silence is deafening on this issue. I'm a bit saddened by that. I confess, this is the first time I've posted on Active Rain. I completely agree with the author. I've always felt out of step with my coworkers quest for more listings, more sales, more money, more recognition, being number 1 in this or that category, or having a large team..but whatever the quest, more was always better...Way more was even better, and way WAY more was really great. It seems that it is just never enough in our industry.

I don't want to portray myself as lacking in ambition or having no work ethic. Nor do I want to portray my coworkers as having no soul or no values. Much to my surprise (and chagrin at times) I've been a top producer for most of my two decades in real estate. I work in one of the top real estate offices in the nation. My coworkers for the most part are consummate professionals who work very hard for every transaction they make...and they make a LOT of them. We dominate our marketplace. But I have to question the personal toll it takes on our families and relationships along the way. I don't think it is worth it.

This makes more sense than anything I've read in a while except for the Bible. We should take a huge lesson from The Greatest Generation that pulled together during WWII. My parents would be aborred by my debt to income ratio!

If that's true, what will happen to the housing market? Will upper-end homes continue to fall in price even after the housing market stabalizes? Will starter homes become a hot commodity for a prolonged period of time? Will family renters become more acceptable?

John

I'm just finishing a great book that discusses just the problem, or really explores a type of solution called A Guide to The Good Life (the ancient art of stoic joy) by William Irvine. It is definitely worth the read for anyone that liked your post.

Todd Anderson

www.YouInParkCity.com

Well who are we going to sell the 5k sq ft houses to? What are you going to tell the trade up buyer? Don't buy? Stuff is not the problem, not being able to afford it is. Personal responsibility. Did you ever tell a client don't buy? Live like the uni bomber. You over simpilfy. A case can be made for what you say is some cases. The problem we have is due to laxed under writing. We are I'm the buying and selling business. Not evanlgelization. Buy and Sell. Go USA!

John Mulkey wrote: But WE all have an obligation to help find the solution.

What is your suggested solution?

I was shocked to recently see that the average credit card debt was over $8,000 Wow

Aloha John,

It's time for America to turn off the boob tube, CNN, Fox News, etal. Stop supporting slavery by condoning usury through credit cards and mortgages. Demand that congress be accountable for their actions or lack there of and dissolve the Federal Reserve. Why have private and foreign interests control our credit system and money supply?

We Americans love our illusions even when they are destroying everything we hold dear. Stop corporations from being accountable to their stockholders ONLY. Greed begets more greed. Capitalism only works when honest, socially conscious, accountable, and morally reasonable persons run the show. The last few decades has revealed that Corporate America is run by a bunch of a-moral and greedy neer-da-wells whose only goal aside from putting a smile on their stockholders faces is to loot everything in sight while wipping that smile off thier faces.

Peace,

Right on the money! The want for more and more spiraled us as individuals, and the nation out of control. Whether it was too much debt by revolving credit or by working 16 hour days most of us felt the constant need for more. But more is never enough....when does it stop?

When we get old and reflect on our lives, it's not the stuff we'll remember. It'll be the people and the events we were part of.

WEll said! Very though provoking. We are all thinking about those things now. We need half the stuff we have in most cases.

Right on, John. unfortunately this is my problem, I am willing to admit that I was buying in to this and it's hard to pull back, especially with kids, but it must be done. Thanks for the perspective, it is much appreciated!!

Charles

Great Post John. Far too true for comfort. I'm guilty as charged, along with the vast majority.

Right on. Well said.

I think I kind of missed the fascination of 'having it all' ...When my best friend died at the young age of 33. She had it all, big house, two sports cars, big diamonds ...but you can't buy your health. It was my mid life crisis a little early I guess, but I found myself dropping away from the rat race because of it. I earn a good living, but I also shop at thrift stores, buy used cars and don't mind not having the lastest and greatest gadget.

I don't mind people wanting it all. What I mind is the greed of getting it without having to pay for it. If someone decides to sacrifice their relationships with the family to work longer hours for the money instead, well that's their choice, whether I agree with it or not. But I can't abide the politicians, or others who want the handouts without the necessary work to earn it. To me, that's more of what got us where we are today ...people who wanted it all without having to work for it.

Great post John. As we all 'recover' I hope that accountability becomes the watchword for what we become. I like Dave Ramsey as well for his messages of responsibility and accountability.

Great article...Send it to our President.Maybe he will get the message.

Per John's analysis, many of our fellow citizens are confused about what should constitute "the pursuit of happiness." I've visited Europe many times -- my sister married an Englishman 30 years ago and has lived there since -- and I am always struck by the lifestyle there. Oh, they go to movies and bars, but there is much more getting together at friends homes, family outings to the parks, much local travel on public transportation to jammed museums. They are taxed much more than we are, and their governments are more involved in their lives (e.g. nationalized healthcare, etc.). Yet they do seem more "grounded," if that is the correct word, than we are as a nation. I always scratch my head when one side of our political spectrum screams that the other side wants to import European Socialism here in the States. That is supposed to scare the rest of us, but it is curious that no one ever explains what exactly is wrong with European Socialism. Europeans have their problems, but they do seem to be living their lives fundamentally in the way John and others suggest we should.

John,

I agree with you but there's also much more going on than the average person see's. In my opinion, we've let the Federal Reserve and banks suck us into debt. After all, our monetary system is based on debt and sooner or later it's going to catch up. As consumers we just fell into the great big banking trap. All those loans and credit cards that were approved are coming back to bite us in the tush. Unfortunately we will never see the American deficit brought under control. I believe we're are in for an interesting ride in the near future. It's a shame that greedy and powerful people take advantage of those who have less than them.

Thank you John...

This blog was more appropriate 5 years ago. We have gone beyond the McDonalds drive through mentality of "I want it, and I want it now" to out of control Government encroachment. I'm not anti-government, hell, I was in the Military for 27 years and I receive a nice Government check every month. Government has been my livelihood all of my adult life. The recent oppression of individual rights to entitle those who are not entitled is the root cause of our situation (California is a perfect example of where the rest of the Nation is heading).

Making money and providing for our children is a natural human instinct. I played with Tonka trucks and Lincoln Logs, my Father played with handmade bows and arrows, his Father didn't play much as he was expected to be working when he was 8 years old. We want what's best for our children and families...it's not a Sin. Children must be made to understand their parents worked hard to provide them with the Play Station, just don't give it to them because they whine a little. Birthdays or other gift giving okay, a casual shopping trip in Wal-Mart, no way.

Our Governments waltz through Wal-Mart is maxing out credit cards it doesn't even possess! For what? I'll tell what...to give undeserving whining children something they didn't earn or deserve. Health Care is not a "Right". A new home or new car is not a "Right". A college education is not a "Right". A job is not a "Right". Social Security benefits are not a "Right" (if you didn't pay into it). But the people of this Nation have been led to believe that all of these are Rights. Until this facade is lifted we are doomed to lives of servitude to those whining children who throw tantrums on the floor and embarrass us.

Howard Tennyson

It's all about the bail-out, baby - - there's no survival of the fittest or success of the smartest anymore, we give out awards for just showing up; our local high school isn't going to announce scholarship award winners at graduation because the kids who didn't earn a scholarship might feel bad; parents bail out kids instead of letting them stand on their own two feet and solve their own problems and now we expect the banks, Uncle Sam, our boss, anyone but ourselves, to fix our problems! Not my fault - - - Wah, wah, wah. When we get it fixed this time, it will just break in some new way down the road - - it's a CYCLE - - ride it!

It all started in the second refi boom in the '90's. Prior to that nobody took equity out of their house for anything but childs education or an addition, then they started paying off credit cards. I worked with a lot of smart people in the mortgage business, one Tom Smith at Amerihome Mortgage in Michigan called it the Piggy Bank problem. I always loved that.

"The beautiful people in the magazines got the normal ones liven beyond their means"

Our country definately has a value crisis.

John, excellent post. I know in the past I have fallen into this trap, but no more... I came to my realization through my waking up to the global environmental crisis - another area (and very intertwined with this problem) where we have been greedy as a nation and as individuals...

Yes time for reality check. We need to separate our wants and needs. Start by getting one want for 5 needs. Just wanting things is worst then any other habit out there.

Yup. "The good old days are here and now."

Stuffing feelings with debt, food or [addiction] is stuffing feelings all the same . . .

What you say is true but only part of the problem. Who is to blame for such "binge spending"? Movies and television? I think not. It is an attitude that has been and still is promoted by many, a sense of "entitlement" and a failure to take responsibility for ones actions and circumstances. We Realtors sold the 'American Dream', everyone has the right to homeownership. The government says health insurance is a right. Food, clothing, shelter all rights. Wrong!

You must work to provide for yourself. You must live within your means. You and only you are responsible to put food on your table, cloth yourself and family, should you decide to have one. Provide health insurance and a place for yourself and family to live. No not everyone should own a home. Not everyone deserves the american dream. We have no one to blame but ourselves and it is up to each and everyone of us to find solutions to our circumstances. Not depend on the government, our neighbors, community or some higher being. Just think what our world would be like if we all took care of our own responsibly.

That is not to say we should not extend our hand and wallet if we choose. That is what strengthens our communities and families, that is the icing on the cake. Our obligations are to not burden others with our poor choices and selfish desires. Our country needs to get back to basics. In the words of Lee Iacocca from his book, Where Have All The Leaders Gone?, "You don't get anywhere by standing on the sidelines waiting for somebody else to take action".

Joe - More stuff and more debt, that's the key : )

Robby - It's a simple formula, but it requires discipline.

Julia - I don't think we can avoid a larger crisis.

Dave - I think that will be a benefit of this "crisis."

What's amazing to me is not how much stuff people have to have, but how much self-improvement and pampering we have to have. It used to be, women could simply paint their toenails. Now, without a pedicure, we feel ashamed to show our toes. And teeth - it used to be that keeping them healthy was enough - now they have to be sparkling white at any age and despite serious coffee addiction. And God help you men if you let your hairline slip!

John, excellent, excellent post. I could not have said it better, and trust me, as someone who made a lot of money between 2004-2007, I wish I could have followed the examples of prior generations, including my parents as ones who always saved for a rainy day and didn't spend everything they made. My generation(Gen X) and generations since have simply felt a sense of "entitlement" to nice things and bigger and better things and trying so hard to "fit into society" by having equal to or greater "toys" than your peers, friends, and neighbors. The bottom line is, if you want to enjoy the things in life using a lot of money, be prepared to pay a price somewhere along the line. You can enjoy life now and buy the big house, the boat, the Hawaii vacations, the huge big screen and get yourself into debt that will become unmanageable, or you can put off buying things, put off that vacation, save your money, and later in life retire with dignity and have a nice nest egg to live on the rest of your life. I have learned my lesson the hard way that the latter of the two is the better option. Who wants to be in their late 60s or 70s still having to work because you did not save your money? Not me. Thanks again for the great article Sincerely, Paul W. Thompson Home Mortgage Consultant

Cheryl - I think you're on the right track.

Christy - As our parents and grandparents learned from the Depression, we'll learn some hard lessons from this.

Eric - Lots will change. Yes, for many the McMansions will no longer have their allure. Obviously I can't predict all the changes--I wish I could--but I believe we're in for some dramatic ones in the coming decade.

Todd - Thanks, I'll have to check it out.

Polk Properties - There will always be some who want to "have it all," and you can sell to them.

Anonymous - As you so aptly quoted, WE have an obligation to FIND the solution. One thing it's not is to continue business as usual. For me life is about much more than "Stuff." I've tried that route and don't like it. In the long run it doesn't work, and creates the kind of problems we have today. The change I envision is a change in our perception and understanding of what we can contribute in this life. I suspect I'm older than you, and have had experiences that ranged from being head of a large corporation to visiting with shamans in the Amazon. I've learned from all my experiences and have a different view of where I need to expend my energy. It's a journey that has taken decades and during which I've made many mistakes.

Edward & Celia - Unfortunately, that's what is funding many budgets today, and it can only lead to disaster.

Kimo - There are serious problems, but none that can't be solved. But it will take a resolve that I don't currently see.

Andy & Angela - More certainly can never be enough for it's not about the stuff.

Drew - Perhaps that's where I am : )

Sheila - I often ponder how I used to survive without my cell phone, computer, flat screen, etc., but I think life was certainly easier.

Hey man most folks did not do what you are accusing them of. Yes some did but SOME always will. I remember hearing this sort of "excess generation" back in the '70s. Then a few went back to the land and grew their own smoking material. Our society will be OK just watch and see what will happen in a few short years. Our society has a way of correcting it's self.

Charles - We'll all be better off if we can wean ourselves from some of the consumption.

Mike - I'm guilty too, recovering, but guilty. But it's not a problem that can't be fixed.

Sue - Great comment, thanks. Sounds if you're on track.

Larry - While I've seen much in Europe that might be good, socialism isn't part of it. For me it's a continuation of the problem, just getting someone else to pay for it.

Howard - Thank you for your service. Yes, we want the best for our children, but that doesn't always mean that the latest and most expensive toy or pair of shoes must be bought. And you're correct that many have come to see privileges as rights. We're on a dangerous path, and I'm not sure where it leads.

Terry - This cycle may be the one that breaks us.

Scott - Perhaps it's "Value Confusion."

Joanne - Yes, many of us are beginning to see the need for change, and for many reasons as you mentioned.

Rupinder - Yes, we need to understand that a want isn't necessarily a necessity.

Candice - Today is a good ol' day for me.

Nicoletta - I'm not indicting just movies or TV; they just promoted a false vision. And I have no disagreement with your other comments.

I enjoyed this post, and agree with it! Yes, we are all part of the forward march of the "I have to have it now and I want my generation to have it better". If everyone were able to practice what they preach, and make their kids believers of the lesson, it would help along the way. It just seems like we are too far into it now. Huge country and huge problems. They should be talking "be responsible and accountable for your family as long as you are physically able". I am starting to think I need to get a milk goat and some laying hens, fill in the pool and put in a garden...then build a high wall, as the ones who did not prepare will be coming in to take my things...remind anyone of a fable?

Joetta - We've bought into that way of thinking, but we can stop.

Paul - Yes, everything has its price, and many times the price is more than money.

Chad - It's not and accusation; it's a statement of the "disease" the nation has contracted. And it's a lot more pervasive than you imply. Just look at the foreclosure rate and mountains of credit card debt.

Dana - You said, "Yes, we are all part of the forward march of the "I have to have it now and I want my generation to have it better". But wanting to have it better doesn't have to revolve around "things." We seem to have grown confused over our values.

Very well said, John. Sometimes the truth hits deep!

John--Well said. My partner and I have also come to this conclusion and have been making big shifts for ourselves and our children. And things are beautiful as we spend more time with our children, in our garden and with each other. Some wonderful things are coming from this meltdown. It may be hard for many to see that now, but on the other side of accumulation is freedom!

Roger - The truth may hurt, but if we recognize it, we can make changes.

Tamara - I do believe there will be positive changes reaped from what we currently perceive as a negative experience. Sounds as if you're on track.

FINALLY, SOMEONE WHO CAN MAKE SENSE OF THIS MESS!!! THIS IS THE BEST POST

Amanda - Thanks for visiting and for the nice comment.

John,

You are right most of us reading your post are guilty of buying way to much stuff. Stuff we really don't NEED, as Wayne Dyer would say if you are living without it right now then you really don't need it. I think this "crisis" is the way of getting us to look at ourselves and what we've become and reassess what we are doing and where we are headed. On CNBC today I heard that the "shop till you drop" motto is now "Save to the Grave" or something along those lines.

It is going to be painful medicine to swallow for quite some time ahead, but we will survive and hopefully we will be stronger for it. Sadly, we have spread our consumptive ways to most of the rest of the world already. I am already shopping much more consciously and evaluting need vs want in my purchases. Trying to stay on a "budget" for the first time since I can't remember when.

My new motto, simplify!

Nina - Many of us are recognizing the need to simplify, to make changes in our lifestyle, and that's a good thing, perhaps the best result from the recession.

Hi John, It's hard to have an economy that isn't focused on bigger, faster, shinier stuff when it is indeed an economy based on consumption! Perhaps it's time to grow up and enjoy life, relationships and the simple beauty of nature. I'm all for it!

JFC, if you'd like to be a preacher, there have to be plenty of openings.

The naive simplicity of this is absolutely stunning. Bought too much "stuff?" Okay, don't buy it. And then there'd be no Apple. No IBM. No Wal Mart, no Costco, no Intel, no Cisco, no Oracle and so on. GM would have melted down 20 or more years ago.

"This crisis is not financial?" Give me a break. The "simple life of our parents?" Mine sold a pair of tires for $5 to pay the rent. I do not long for a return of that time.

The profusion of ignorance can be stunning.

John-Very insightful and enlightened perspective. You are one of the ones who will lead others through the changes coming in 2012 and the new shift. This is actually what is going to save our planet. The changes have already begun. This is a great post.

Marian - I'm with you.

William - Yes, ignorance is sometimes stunning, but perhaps less so than arrogance. You missed the point.

Scott - Thanks for your comments.

John, this is a very sobering post. I just know I've observed that younger generations don't want to wait to have the good life. They want it right out of the gate. Everything today has to have a reward or bonus or some catch to it. What ever happened to just doing well for the satisfaction of doing well?

Sharon

John you wrote a great post. I've read all the responses and my take on this is simple. "You can't take it with you." I've heard this a good part of my life and it has a profound meaning. We're only here for a short time and time is a precious commodity. Responsibility and accountability were instilled in me early in life. I've always been a hard worker and still am in my senior years because I love what I do. We fell into this financial pothole because of many things. One I might add to yours is the lack of political education. We tend to think that the people who get voted into office will do their best for the rest of us. Pooh! Until we learn that we have to be concerned about putting into office the right people to govern us and to learn how to do that, we will always have problems.

Sharon - There are prices to pay for unbridled consumption--in money, mental and physical health, and in damage to the environment.

Ann - We need term limits.

It is fascinating. Cheap credit and low rates got us into this crisis, and yet here the government is, egging the Fed on to print more money and keep rates low and for the banks to lend.

I think that we were taught this glorious lesson by our government. Never happy to live within its means, it taught the rest of us to consume beyond measure. And as a response it is choosing to amp up the debt to new levels...

Until this stops, we won't see a correction.

Great post, John... Even better comeback! lol!

Mark - At least the government is supporting us in our spending spree. The presses are running overtime.

Lane - Our kindly "Uncle" has set an example we can't begin to match.

Toni - Thanks!

SO VERY WELL SAID!! Thanks for the post. Love the background on your site, too!

Michelle - Thanks for visiting.

Wow, so many thoughts running through my mind right now, not enough space to post it all. First of all, great post! My wife and I are constantly reminding ourselves how blessed we are, especially in the midst of the struggles many Americans are facing. We have a mortgage payment and that's it. It's extremely comforting knowing that we don't have to live paycheck to paycheck, that we can splurge sometimes without verifying our credit card limit, and we can be generous in our giving to various organizations. (By the way, if you have a job, or have any form of income, you're among the world's wealthiest people)

My personal opinion is that there is nothing new about what got us into this mess, but it's coming about in a different manner. Greed/selfishness is the reason that all of this has happened, and why most things have happened thoughout history. It will continue to be a part of humankind until the end of time.

And I will step on my soapbox, or behind the pulpit, for a moment and respectfully disagree w/ Nicoletta and suggest that a "higher being" is exactly what our nation needs to become better and stronger.

I'll keep the rest of my thoughts to myself for now...

JUN

"But WE all have an obligation to help find the solution." NO, .......... I don't :o) :o)

On the financial question, one must ask, if the dollar is an instrument of debt, and it must be since it has no intrinsic value, then who is the creditor?

Am I a slave to my "stuff" or am I a slave to "stuff that I harbor?

Is my contentment affected by my debt to income ratio? To the financial condition of the country?

Did I feel good all day today because I decided to do so this A.M.?

Love the post!

WOW _ I can't even begin to state how much I agree, I've reposted it. WOW

I'm a bit confused. If the cirsis isn't financial. What is it?????

It is surely a crisis. Debt is surely financial. Greed is surely financial.

Here are a couple of charts on this blog post that support your cause:

http://www.calculatedriskblog.com/2009/05/mew-consumption-and-personal-saving.html

We've been trying to live like a beer commercial for the past decade and now we have a major hangover that was just not worth it.

Glad to see that somebody gets it...

John--Great post and comments. I especially like the first one you added. 'There is nothing wrong with stuff until it becomes our primary focus.' I will remember that as I clean out the garage today.

Very timely and excellent post. Having recognized this in the not to distant past, I have made changes in my life to get me to a better place and your reaffirming words are humbling and appreciated. Please keep up the great work you do.

Ditto....been there done that and dug my way back out with no desire to go there again! The older and hopefully wiser we get, the more we realize that it is not about quantity of life but quality of life. And in response to post #14, yes I have advised a buyer not to upgrade to my own demise. It is not only sell sell sell, we have a moral obligation to people as well. Sell sell sell means it is all about me when in fact our code of ethics says that it is all about them. I sleep pretty good at night knowing I have tried to do the right thing. What goes around comes around.

John, great post! Until we all start to live within our means by not putting our hat higher than we can reach it, this problem will not be resolved. Our government needs to start leading by example by practicing what they preach and curtail their massive spending.

Bailouts are the cancer and bankruptcy is the cure. We can not borrow our way out and the simple fact we are trying is protecting the rich at the expense of the taxpayer.

There is a huge unwinding of the moral fabric of the country and we are not even on the course to begin the healing. I keep hoping.

There is truth in what you are saying but likewise without pursuit of "Stuff" there would not be growth. Somewhere there is a happy medium. What happened to the program where you aquire stuff when you can afford it, not when you want it.

It is understandable to truly need something when circumstances require a replacement or the introduction of something into your life that you didn't have before. But if you are wise you adjust your life style to accomodate that new liability so that you are not over extending. However, in the case of this country we are over extending regardless of the generational impact. All for what? To make everyone feel the same pain, to have the same things for as little input as possible except from the so called rich?

Our current circumstances have occurred because uneducated, under educated do gooders, along with equally lazy an low production individuals want to heal the world at the expense of those who try to do the right thing and use common sence to get ahead. All because of some mispersception about America having too much. So now we can all be in the boat going over the waterfall: Afterall it's fair. But wait, there will be a few of us who will step off, around and over the lemming mentality. We'll be just fine and find ways to not support those who "want stuff" at any expense. Now you're wondering how... well I'd tell you but to put it up here would be informing Uncle Sugar and I just don't think I will. But if you are creative, think for yourself and value your personal freedom you will find your way.

"symptoms of the real illness"? YES! The cause? George W Bush and the Republican Party. The elder Bush said it right in his debate with Ronald Regan - voodoo economics. But, then he would rather be President than right. And, for the record, The Beatles did more to tear down the wall than that "hero" ever did. He almost had us in a nuclear war and his tax cuts drove us to bankruptcy.

Chad - What I've presented isn't "new," but it's often ignored.

John - But I hope you'll help : )

Susan - Thanks!

Lenn - My objective with the title was to stimulate people to think, not to just look at the symptoms of this problem--the financial crisis--but to consider what I believe to be the root of the problem.

Paul - The binge we've experienced has created many problems and little benefit.

Mary - Where we place our focus is the key.

Mr. Butch - Sounds as if you are on track.

Edward - And, you too, are in the group that seems to get it. Perhaps more are awakening from the nightmare.

Arthur - Our elected leaders surely doesn't get it, and have set the worst of examples.

Mark - I agree. We've a long way to go.

Anonymous - Yes, it's moderation, and few understand it.

Gregory - Both political parties are guilty of encouraging the lie.

You are right George.....Reagan WAS a hero!

Great Article;We need to get back to basics and only spend what we have, most of us don't know how to budget and spend within our means.

Great post John, I wish you had made it reblogable because this is a clear message that needs to be passed on. We all need a quick slap in the face and your message drives home some very good points.

Great post! I've seen a trend recently to more of a debt free lifestyle with people purchasing items that they want but with cash only. Can you believe it...actually using cash.

I suggest it is a failure of our education system. We should include financial responsibility in our grammar school curriculum. We also need more accountability when someone abuses the system. This is a true story: the wife of a local police officer convinced her grandmother to co-sign on student loans for nursing school. Somehow she was able to get over $90,000 in loans. She completed school but decided she did not like the type of work she was qualified for so she defaulted on the loans. Her grandmother is probably going to lose her home. The husband is not on the loans and she is not on the deed of her own house so both are excluded. In my opinion the granddaughter committed fraud and should be prosecuted.

Well written, John. My dad was a frugal person and tried to teach me to be that way, but once I got into college and had credit card offers that would pay for my stuff - trips, stereo, eating out, etc...I didn't think twice about living beyond my means. That was a long time ago - now I'm married to an equally frugal (sensible) man - pay as you go:)

John,

You are absolutely correct in your assumptions. Those things that really matter in ones life like our family and the relationships that we value most were somehow interwoven with the idea that materialism was what really made our lives fulfilled and complete. Material items are truly just "stuff", like you said. Those things give momentary joy and is fleeting. They are not like the lasting joy that we get and give to the ones we love most.

Self reflection is what we need instead of the common fingerpointing that happens when a crisis such as this happens. If everyone could analyze what they did wrong (and not blame others) and work on correcting that, then the world would be better off.

Rick - That's a good place to begin.

Anonymous - Thanks, it has been re-bloged, I think to its max.

Darrell - Yes, having cash is a good thing, spending it wisely is better.

Bean & Dunn - Yes, the schools have failed us, but it begins at home.

Ed - Pay as you go is a concept many fail to grasp.

Jim - "Stuff" is sometimes nice, but little of it is essential. Many avoid self reflection because it is sometimes painful and points us in a direction we'd prefer to avoid.

John. What do you believe to be the root of the problem. I see what you think it is not, but can't quite see the articulation of what you believe it is.

Great article and refreshingly great comments in support of it.

Hi, I am Eric and I am an american consumer. I also have been watching my habits and patterns and making changes. I have been a long time supporter of the WorldWatch Institute and they have made me aware for quite a while now that this planet's resources were being used up at much too fast a rate. They started pointing out decades ago that our planet could not sustain this pattern. I am happy to see and hear that people are finally listening and doing their part. We are in serious trouble and admitting that we have a problem is a good first step. We have to rethink our lifestyles, our design of communities and our purchasing patterns and choices.

The American consumer is the most powerful change agent in the world. We have yet to understand that and it's true power. We can make conscious choices in what we buy, how we buy it and how much we buy. Now that we have forced globalization down everyone's throat and that we are broadcasting our way of life to the rest of the world, we are faced with their increased buying power and their wanting our lifestyle. It is not possible. One study has already proven that it would take 3 planet earths to accomplish this. Now that we know this, we have no time to waste. Mother earth has sent us powerful messages as well. We need to change or we will perish. A complete collapse of our society, financial systems and eco-systems is possible and could happen very quickly. The balance is more fragile than we ever thought. There is such a thing as a tipping point where we push and push and push and all of a sudden things flip to our surprise. The oceans have been acting as a heat and Co2 sink and they could be approaching a tipping point.It has also been called the 100th Monkey Theory. A powerful metaphor for teaching children. They get it quickly.

The government needs to lead by example. They are a huge part of the problem. All they have done is move the problem to later and probably making it worse. Giving money to bankers was the worst thing we could do. Already I have heard many stories of businesses trying to develop new sustainable products which is exactly what we need and not able to get financing from banks. Printing money and devaluating our hard earned dollars is a crime and it needs to stop. The Federal Reserve experiment is another failure that needs to be eliminated. We could start by renouncing war, all wars and war thinking. We don't need wars, war on poverty, war on drugs, war on cancer. None have ever worked. We need leaders that can articulate and carry out a vision that uses other means to stimulate our economy other than the military industrial complex and wars.

Since our capitalistic system is so emotional and dependent on stats like unemployment and GDP, why don't we make a quick change and start counting all unpaid work in our GDP. The nations that have switched to that, have discovered that it is 70% of the GDP and they weren't counting it or acknowledging it. A by product of that was a new reverence for women and their unpaid work of child rearing and family support work, volunteerism, community work. Just think what would happen to emotional Wall St if all of a sudden the numbers just looked better!

We may not want to be too exuberant and just go back to what we were doing. There is a good chance that just like we've reached, peak oil, peak Co2 levels, and peak fresh water consumption, we may have also reached peak capitalism. A system based on perpetual growth is not sustainable.

We have a crisis and I believe that the solution is going to come from us at the local community level and not from the top federal level. There are many people out there with many great ideas and worthwhile solutions. It is high time that our mainstream media start acknowledging these voices instead of the standard fare of propaganda, which let's face it, have lead us us to this point. Fox is not the answer, it is part of the problem. Without their support we can't learn properly. Either that or another channel needs to become as powerful for the other side. One that is focused on Healthy Sustainable Ecological. So far these voices can only be heard from listener supported media like the Pacifica foundation radio stations, LinkTV, Free Speech TV and NPR. How many of us listen but don't donate. We need to put our money where our mouth is. They are struggling just to stay on the air.

Well said!

Lenn - As I stated in the beginning of the post, I believe we've become: "a society focused upon personal comfort and satisfaction, chasing an ever-changing vision of happiness, a narcissistic assumption that it was about us..." I believe we've become focused upon things, the "stuff" as I call it, and have drifted away from the core principles that are the true foundation of happiness. We've come to accept much of the "stuff" as necessities for "the good life."

I believe that a great number of people are miserable in their seeking, for there is always something else that is just beyond their reach. They have forgotten how to enjoy the moment, with family and friends. But--these are just my thoughts, for they are the only ones I can offer.

I am so with you on this. In fact, for a long time now...several months I have started ebaying all the "stuff" I have that I don't ever use! Why have 20 tea cups that sit in a hutch and never even get looked at? Or do I really need to save my prom dress from 1978? I doubt I will ever wear it again even if I could fit in it...... Yes, my new thing is becoming a minimalist! For one it is much easier to clean your house then and when you move on to the "other side" there is less things for your kids to fight over:)

Nice post!

Enjoyed reading your post...thanks!

Eric - Thanks for the thoughtful response. You said: "We need leaders that can articulate and carry out a vision that uses other means to stimulate our economy other than the military industrial complex and wars." I would agree that we need leaders, not politicians.

Joan - Yes, it's nice to change our focus from the meaningless trivia and begin to focus upon those things that are truly meaningful.

John,

Sadly enough I believe you've summed up the situation, "Spot On!" On a personal note I myself had fallen into the very trap you described and have gone through a virtual living hell trying to rectify the situation.

I believe myself, like many Realtors, had never recieved any real training in what to do when we finally started to make the kind of money we all know can be had in this industry when you apply the correct principals. Unfortunately I lived up to the edge of my means and beyond and woke up one day in deep trouble.

Some friends suggested we check out, "Financial Peace University," by Dave Ramsey and that has led us to a whole "New" way of life. A way that my Grandfather and his Father knew well. Dave has a fantastic writing and speaking style and for me he was easy to listen to and understand. His principals are based on time tested methods and the way he applies them are simple to put into action. If anyone else out there is reading this and wishes they could find a way to come out on top in the money game then I STRONGLY suggest you check out what he has to offer. You can also find him at, "DaveRamsey.com" (And by the way, no I don't get a thing for anyone going there or buying his stuff.) I just hope to help those who are truly seeking an answer to their financial dilema and it's much closer than they realize.

Warmest Regards,

Bryan

Brian - Yes, Dave Ramsey has a sound, common sense approach to using and saving money.

I forgot who I was addressing in my last post. Since this is a real estate community. You all need to start the conversation and keep it going on. The local governments need to quickly change building codes to head towards the zero house. They can get involved to insure that the installation of solar panels and geothermal, and solar hot water panels and wind turbines gets done. Some communities have figured out that it is in their interest to make the investment with the homeowners to insure that it gets done. The builders need to take responsibility for how they build and what they build. It's not just about making money as fast as you can anymore. We are all in here for the long run. We can't pretend we love our children and then leave them a giant mess because we were more concerned with making money and having lots of stuff. Every home could use some work that will insure better energy conservation. Landscaping is important. All of these lawns that require tons of pesticide and non stop mowing are not what we need anymore. I tilled most of mine under and made herb, flower and vegetable beds everywhere. Lawn mowing is one of these incredibly polluting, water intensive and still unregulated industry. It is one of my pet peeves as the amount of time that one can hear and smell some filthy 2 cycle lawn care engine in the neighborhood has become greater than the amount of time one can enjoy the bird songs, smell the flowers or just quiet time. Besides that there is nothing like fresh picked vegetables and herbs. It's more healthy in more ways than one and it reconnects you to where food comes from.

Confusing greed with the virtue of accomplishing something with one's life has yielded the idea of entitlement, where that greed can be fulfilled with "stuff", an empty fulfillment to John's point. You can be happy just doing what you love to do and being with the people you love.

It is this confusion that causes the moral crisis John speaks of. The confusion exists because of a lack of education. Society is easily persuaded and manipulated because they just don't know any better and they don't know the true definition of the language they speak and that is being used on them. The manipulation of the meaning of words can lead people to understand the aforementioned virtue as just "being greedy", amongst many other things.

The purpose of the manipulation is to pander to the moochers and loot the earners. There would be no motivation to manipulate if there wasn't much to gain by pandering to the moochers.

If we had an efficient government bureacracy, the department of education could produce students competent in language arts, math and science, and personal finance. The students would not be easily moved by CNN, Fox News, MTV reality shows, and most importantly, the messages in the commercials in between. These students would know the dangers of drug use, premarital sex, and anything else considered irresponsible. They would have the knowledge base to strive for excellence instead of "stuff". Instead, there is an intellectual bell curve exacerbated by "fairness" and unmotivated ($$$) teachers.

As we've seen time and time again, government involvement is pointless. I say privatize education. Make it profitable. Erase the intellectual gap.

John,

Great Article, I too believe exactly as it is in print. We have gotton away from the necessities of life to the Stuff of life. Such a HUGE difference. Everyday there is something better, newer, faster, etc. Maybe it's time for us to all think about the values and morels we want as Americans.

I'm certainly ready to turn back the clock abit, to the enjoyable live where I wasn't working 80 hours a week. I've learned that I don't need "THE BEST" of everything and that it's not nearly as expensive!

Eric - I gave away my mower many years ago. Now I have native plants and lots of wildlife.

Jonathan - In order to accomplish the things you describe, WE have to become involved in the process. We can't just complain, but must take action. Elect those who know how to lead and fire those who don't.

Very Good post. One need only look at the way many immigrants live when they come to this country to find success and prosperity.

I agree. I Blogged about this some time ago. We live in a squander nation. I hope we learn to save and to be content with less. If we have excess, more than likely someone else is lacking. We can help others and add goodwill to our psychic bank account rather than a boat to our driveway. We certainly don't deserve everything and we don't deserve it now. Well it's gone, but perhaps next time money sarts flowing in our lives, we let it puddle and not just let it flow away.

Larry - It's a disease that was once described as "Affluenza."

Exceptional post, you eloquently expressed the core problems in our society today. It's NOT about the stuff, but I'm wondering if we can turn the train wreck around in time. I go from truly very, very worried about the direction our country is going to "it's just a phase we'll get through it". Again, great post.

Absolutely, let's all focus on the definition of a good life. Is it really as much stuff as one can pile higher and deeper 'til it flows over the many plastic tubs we've purchased into a mini-storage we may have purchased? Obsurd. Yet, as a loan officer, I worry about my clients. Many are penitent, as I am myself! But with libor arms coming due and families to feed, how will they make it? Not everyone is driving a mercedes. Some are and have been barely getting by. What of them? Especially now that our lending guidelines have become so much tighter? I'd appreciate any words of comfort.

Excellent Post- it rings true to my ears and beliefs! My husband and I have always had the philosophy- if you can't pay cash for it right now- you don't need it right now. We have never had a problem with credit card debt, we own several homes (we do not consider this debt, we consider it a new kind of savings account), we own our cars- and we are very happy and sleep well at night. We do not live in squalor- and we are happy with what we have. We will of course continue to strive for better- that is the beauty if living in America, but we won't cloud our ambitions with "stuff." Thank you for your post!

You wrote a very good article but it doesn't include the whole picture.

The values crisis is cyclical on the order of a human lifespan. We got into the current mess because most of the people who lived through the Great Depression are gone. Google "Kondratiev cycle" if you want to know more.

The bigger problem is that our consumer economy is based on using ever-greater amounts of resources, especially petroleum. 2008 was the year we ran short. Conventional wisdom is that the current drop in house prices and the spike in oil prices are temporary but they are not. [Google "Hubbert's peak"]

The solution is for people to start asking "How can I create value others?" [Napoleon Hill, Think and Grow Rich]

Jill - It's not that we have to individually "turn the train around." We each just get off the train.

Shari - We will have to experience a dose of pain/reality in order to help us see where to proceed.

Rebekah - Thanks for your comments. It sounds as if you've discovered the secret.

John - I'm familiar with Kondratiev, and agree that part of our problem is that we didn't live the Great Depression; but the cycle we're entering isn't a normal one. It will require great change or it will deliver an even greater one.

John,

Thanks for the great post and a good reminder of what's really important. For far too long, we have played "kick the can" with our debts while filling our lives with insignificant "stuff". We were sold a "bill of goods" on the TARP, etc and we went along with it to protect our "lifestyles". In other words, we were told that if we don't go along, we won't be able to keep our "stuff". Hopefully, recent events will help recreate a culture of saving, accountability, and individual responsibility. We'll see....

Geoffrey - I'd like to think we're on the right track, although the journey will be long and difficult.

As a home stager and frequent buyer of properties for myself, I've seen thousands of homes across the US and Canada and it's amazing the amount of unneeded stuff that people accumulate. Not only are they drowning in debt from all these possessions, they are actually drowning in all this stuff. They have multiple rooms devoted to no other purpose than being a dumping ground for the clutter once it has invaded every other inch of the rooms they actually live in.

Debra - I'm sure you can appreciate more than most the concept of too much "stuff." That's why one of the first rules for preparing a home for sale is to remove the clutter.

Let's not be too quick to trash all of our 'stuff', which is a fairly broad term to begin with. The desire for 'stuff' and the ability to obtain 'stuff' is what originally led us out of the caves to light fires and sail across the Big Ocean etc, etc, etc. It is not so much the 'stuff' itself but how one secures the means of obtaining their personal 'stuff' then, what one does with those resources along the way.

If one's professional pursuit truly adds value to the economy, whether it be digging a necessary ditch or creating a groundbreaking new vaccine, as opposed to the evils of capitalizing on Ponzi-esque Wall Street style arbitrage schemes then, it is our choice to earn and obtain all of the stuff we want (it's called liberty). Anything less than that (including increasing federal regulation of our stuff) will hasten our current slow government-led, fear based retreat back into the caves.

John:

You're right on the money. It's not enough to do well. You have to do good, too.

Stephen - Basically that's what I said. It's about the excesses.

Robert - Thanks for visiting and commenting.

John,

Excellent article. We need a balance in our lives. It appears that we have been one sided for too long.

John, you hit the nail right on the head my friend!! :)

Kathy - Balance would be good!

Brent - Thanks for visiting and commenting.

John -- I'm seeing lots of people pulling back, taking second and third looks at their situations, choices and plans for the future. -- including me. Think the pendulum is swinging to a more balanced life, less concern for stuff and acquisition. People are staying in more -- and while that may 'hurt' other businesses, and it does have a ripple effect, I am hopeful that the small guys WILL survive. That's one reason i like the 350 effort -- to be intentional about where I do put any money that I am spending for my needs. Thought provoking post -- thanks,

Alexsandra - Thanks for your comments. Yes, some will be hurt if we stop our drunken spending spree, but we'll all benefit in the long term.

John,

Very well said! And how do we NOW cause change, in ourselves , our children and our future generations????

Great post!

Kathy Opatka

Kathy - We take an introspective look into our current state and where we would like to be. As I stated above: "Some have begun to reconsider where they have focused their energy, their labor, and have begun to realize that life was never about the stuff. It’s about discovering our place and helping others; it’s about the choices we make and the lives we lead; it’s about releasing ourselves from fear and living and sharing the wondrous joys of this life; and it’s about today. We don’t have tomorrow. The good life we’ve been seeking isn’t in the future. We’ve had it all along."

Thanks John for your bang on insights. It is hard to raise children to be content with what we have when we live in this consumeristic society that is so focussed on THINGS.

My husband and I have always trained our tastes to be simple (yet elegant - I am a designer!) and it is so important to remember that the real key to happiness is contentment - now we just have to keep finding ways to explain this to the kids...hopefully our example will speak loudest of all.

Laura - I have no doubt that your example will set the right course for your children. Thanks for visiting.

John- I LOVED this post!

I have been thinking of this exact topic lately as I consider how much our instant gratification-bigger- better lifestyle has added to our environmental crisis. It seems like the more that Capitalists invent to create a market niche, the more consumers crave as "necessaity"- thereby getting us further away from what we really need: namely clean air, water, and fresh food.

In the paper today, I noticed that Burger King is marketing "apple fries"- plastic packaged, precut, skinned apples in a fry box. This begs the question;: what ever happened to a good, old fashioned APPLE??!! Instead, they process a natural product in it's own package and create TWO man made packages, in lieu of the vitamin rich skin.

Even the green revolution that we are now a part of is mainly just a ploy for more publicity; Starbucks, WalMart, everybody markets that they help save the environment because they offer post consumer recycled products or have a slogan on a black board. Why not stop tossing cups when the wrong drink is made and REUSE that one?

Here's a thought: Reuse. Reduce. Period. Pare down on what we buy and on the size of our cars, homes, etc. DO simple thhings like foregoing Ziploc baggies and reusing bread bags, as we did when I was a kid. Scratch the to go cup at your local cafe in favor of what the Europeans do and grab a for-here cup at the bar or bring in your own reusable cup.

Stop trying to buy happiness and find creative ways to reuse what you've got. Become part of the thrift/garage sale couture or donate your old items- or better, trade for others that aren't new. Wouldn't it be nice if Wal Mart could have a losing quarter because Americans stopped buying so much crap???

Eloquent post. Thanks & I'm glad you were noted as top blogger of the day!

-Kat Kelly

McMartin Realty

Sacramento, Ca

Kat - Great comments. Yes, there is much that we can do. We just have to awaken from our stupor and look at the numerous opportunities that abound. This is a great world. I hope we can share it with our grandchildren. Thanks for visiting.

I'd love to hear more thoughts from everyone on this topic. You've touched a nerve, John! If you were speaking at a local coffee shop, tonight, I'd be there. I've been wondering how I might contribute to helping others become more secure given that our industry is blamed for so much of the current economic hardship. I personally am a loan officer, not a realtor--but I feel a real desire to help my clients to achieve greater security and satisfaction in their homes. Rather than to become bogged down in the dark realities of today's mortgage market, I'd like to offer a light to my clients and help to see them through this.

Shari - I think your attitude will help you see those things you can do. You're in a unique position to be able to offer advice that most others cannot.

JUN

Less is more...people are now realizing it. I love your blogs.

Hi, and that was a very good statement of our greed. Another problem that I consider huge is our retail purchasing habits. It is ALARMING to try and buy American made products in a mall. I am for free trade, but I think we have given away the farm. It takes me a LITTLE longer, but I don't buy clothes, shoes, purses, wallets, toys, cars, or anything else I can avoid buying made in a COMMUNIST country. My jeans even come from USA, Jordan, Brazil, you name it. I am very saddened that our jobs have gone overseas. Most major labels, even if they have AMERICA in the label, are made it China. Well, my money stays in America, I use local food products, and I keep my money in American owned banks. Hopefully, if we all take a stand, we can contribute to some jobs and cash flow right here!

Cheri - Thanks for the support.

Deidre - Our balance of trade would be a blog post in itself. Now, we need to buy from China so they have money to buy our debt. It's a bit twisted.

Guilty as charged, as evidenced by over $50K in credit card debt (much of it run up by starting my real estate business), 2 mortgage balances that exceed the value of the homes to which they are attached, and 2 auto loan balances that exceed the Kelley Blue Book Value of the cars to which they are attached. It struck me just a few days ago that its absurd to have such high fixed expenses when our family income is so variable (I'm a Realtor while my husband is a mortgage broker). Too bad I didn't think of this 5 years ago...

Many of the posts in response to this article accuse government, corporations, underwriters, banks, etc... of enabling consumers to overextend themselves. I beg to differ. I blame myself and my husband for making the financial decisions we have made, for choosing a full-time champagne lifestyle on a sometimes beer, sometimes wine, sometimes champagne budget. Life is good during the busy season, but come Christmas time, we're scraping to put presents under the tree. Why? Because we chose this, we didn't choose to live a lifestyle that matched our budget. It was us that created this problem; regardless of commercials, tv shows and movies showing us what life "should" be like, nobody except us could control whether or not that credit card was swiped for our 4th gaming system, or the newest $55 video game that ensures nobody talks to the gamer while playing for 3 hours straight. No one forced us to sign on the dotted line for either car, or for either house (one is a rental). It was us that did it to ourselves. Just because someone told us yes, we didn't have the discipline to say no, thanks, that will put us over our monthly budget.

I don't think it's about conspicuous consumption; if you can afford it, enjoy it. It's about personal responsibility, discipline, and knowing when you are at your debt capacity. The bank may say I can support the additional debt, but my checkbook register says otherwise...listen to what your checkbook register is saying to you; sometimes you have to listen very carefully.

Rachel - Great advice. Thanks for your comments.

My father used to say: "If you make 4 dollars, you should spend 25 cents and save $ 3.75. The Americans make 4 dollars and spend 8."

Although I have tried to adhere to his dogma, I've "Americanized" it a bit: "Make $4, spend $1"

I notice that all my foreign buyers living here in the US seem to adhere to the same dogma. They are now buying in earnest with cash, no less...

Maybe we need to retrain our kids and start setting new and better examples...

Great post, John!

This is now featured on the Optimist group.

Thanks, Mirela. Living within our means is a trait we should all re-learn.

John,

Well stated my friend. They can keep throwing money at economic stimulus but it's not going to cure anything until Americans and the world at large alter their perception just how bad our habitats have become.

Brian - There isn't enough money to solve the problem, and it's not about the money, anyway.

John. Very true. This generation does not know the meaning of delayed gratification. We are paying for that right now. The consequences of overindulgence=BAIL OUT. Therefore we will NOT learn our lesson.

Mark - At some point I'm afraid we'll be forced to learn--when we run out of money or have printed so much that it's worthless. Then the lessons will be even more painful.

JUN

A true dose of reality about the state of our nation and our moral compass. It's always "everyone else" yet we're all affected and we all contribute to the constant frenetic rat-race to have it all. This crisis is indeed an opportunity to re-think our goals, wants and needs as a people. Thank you.

Martha - Thanks for visiting.

JUN

Excellent post. I work with alot of 1st generation of Americans, most have come from other countries, they all live together, pool their money, spend only on what is needed, not what is wanted. Following their example, over the years I have managed to put over 6 million in a trust account that can not be broken until I'm 60 and ready to retire. I have NO credit card debt, no student loans, use cash to pay for everything, I keep my cars until the wheels fall off and manage to live large doing whatever I want, when I want. I totally believe in God, family, friends and the US. Too bad our gov't can not live within it's means........ Hopefully your post will strike home for some, stuff is not the answer, but living life is....

Regards, Kenneth

Kenneth - You're right, many in this country have strayed from the path of being sensible in their spending habits, and the government has set a terrible example. Hopefully, that will change.

You could have not explained it any better..... Awesome!

Henry - Thanks!

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