Wednesday, May 23, 2012

I Don't Understand

The current economic situation has me baffled.   As I see it, a global economic decline is coming.  Yet, no one seems very worried.  I guess that people a lot smarter than me have a better understanding than I do.

Here are some other things that I don't understand:
  • Success is not used as a model.    I want to laugh when failing EU countries are telling Germany what is needed to solve the EU crisis.   Seems like the failing countries ought to be listening to the successful country.  The failing countries have already proven they are ... well,  failures.  Personally, I'd rather get financial advice from a self-made millionaire (i.e. Germany) than an unemployed person, who is in foreclosure and has $100,000 of student loan debt (i.e. Greece).

  • Government is seen as all knowing solution. If that were true, economies run by Communists and dictators would be the top economies.   Government has an enabling role, but not a commanding role as some seem to believe.  I agree with Herman Cain's comment on government subsidies for green energy, "Government should not be in the business of picking winners and losers, because most of the time they pick the losers."

  • All news is good news.  Good news is good news.  Bad news and is good news.  No news is good news.  I guess good news means the economy is doing well.  Bad news means the Fed will do QE3, which is good news. No news means everything is OK.

  • For now, I'm not buying "this time it's different." I think the timeless of personal finance will prevail.

    For more on The Practice of Personal Finance, check back every Wednesday  for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2012 Achievement Catalyst, LLC


    Anonymous said...

    Look at China - sustaiable, exciting economic growth - no country could match.

    It is not like nobody is worried. This year is important one - elections all over the world - the USA, Russia, France...
    Nobody wants to surprise people with bad news. It will all come but in 2013 onwards. Inflation will be raging, number of the jobless people will go up, etc...

    You are correctly pointing at the problems? What are the solutions? All advanced economies are not sustainable, i.e. they have deficit. What is the way out?

    Super Saver said...

    As you correctly point out, China has "sustainable, exciting economic growth..." Maybe the U.S. should learn from what China is doing. For example, China implemented a great stimulus package that signficantly boosted its economy.