We have a big financial crisis in America.
It's not the weak housing market, rising unemployment, inflation, the collapse of Bear Stearns or Lehman Brothers, fallout from the subprime mortgage fiasco, declining home prices, stock market volatility or geopolitical unrest in the Middle East. Sure they have made front page news; however they're not the real issue. They are symptoms of the "spending crisis" in America. They are symptoms of the real issue - that we are a country of financially illiterate people.
In the June 2008 issue of the Journal of Financial Planning, Elisabeth Donati, founder of Creative Wealth International said, "The statistics on financial well-being and young people are alarming. There's a rise in college suicides because of credit card and student loan debt, young adults under 25 are now the fastest-growing age group filing bankruptcies, and more kids now see their parents file for bankruptcy than file for divorce. Less than 10 percent of our high school graduates take any courses on money management or wealth creation. Most of our country's social problems stem from financial problems."
The issues are easy to identify: the government and millions of consumers alike spend more money than they bring in or make. When the government needs more money it raises taxes or goes further into debt. When Americans need more money, they charge it or take out more of their home equity.
cont'd... Click here: http://www.nowuknowonline.com/forum/topics/the-real-financial-crisis-in to read the entire article!
Source: CNBC On the Money
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