Nothing to Fear, But Fear Itself?

I was catching up on my reading this morning.  And, I read an interesting article.  Some of the statistics reported were of the strange, but true, nature.  To paraphrase some of the statistics, we all seem to believe that consumer debt late payments are near record levels.  Apparently not the case. The percentage of late payments on home loans is nowhere near record levels. Troubled loans are rising less than last year.  Now, some of that may be attributable that many foreclosures of the worst of the subprime have already hit.  Some of the loans were very, very shaky.  One lost paycheck and poof! there goes the house.  Still, the pace for the foreclosure has slowed.  I've noticed it because I work with a fair number of bank clients and my BPO business is slowing. Another reason could be banks could be overwhelmed, or found it in their Grinch little hearts to stop throwing people out of their homes prior to the holidays, Right!!!

One senior economist for one of the biggest banks has said we are going into this recession in very good shape.  Now, I'm no expert, but it seem that it appears that the President only stoked the fires of fear when he claimed we were in dire straits.  The economy has not exactly recovered, but it didn't help consumer confidence with the President, Congress and the Federal Reserve all running willy-nilly screaming the sky is falling.  One banking forecaster went so far as to say that in other economic crises and we've had quite a few (memories being selective about that), three of every four problems were fundamental roadblocks to economic growth.  And, that in this instance, three-quarters of the problem is fear. 

Listen to the newscasters, they all tell us Christmas will be a lump of coal this year.  Do you want to go out and spend knowing that?  No, and one of the best ways to avoid deflation is spending.  Goods and services need to be exchanged to bring us out of this.  U.S. corporate profit margins are at record highs!  Yet they all line up for handouts when the government announces bailouts. 

I plan on buying this year...local and from my neighbors.  Each of us needs to contribute to the greater good.  And, if I can help here in my area, I intend to.  It might save a job or keep a house out of foreclosure.