[Maria S]

I agree with some of this article; I also think Bush has been a victim of circumstances...just like Clinton was just in the right place at the right time and had very little to do with the 90's boom.

Just my opinion, and I know zilch about economics. I am old enough, however, to know that you save in the good times so when the lean times show up, you're prepared.

[2banana]

Recent headline: "Consumer spending rises, savings rate dips." The U.S. personal-savings rate in June was the lowest on record. In fact, it was minus 0.6 percent. That means people are not only failing to save, they're dipping into their reserves to spend money -- or just borrowing more. Which brings us to the next headline:

When I see this statement I can't help to see poor analysis. The statement is true for anything under the FDIC (like banks). What is left out of the picture is credit unions and 401k plans. A HUGE amount of money being saved that is not tracked by these traditional numbers.

President Bush inherited a handsome budget surplus. It could have served as a cushion for the near future, when retiring baby boomers put extra strain on the Treasury. But as the swingers say, "Cash is trash." Our so-called conservatives slashed taxes and spent wildly, turning the surplus into a deep deficit.

No he didn't. There was still a massive deficit even with the few unexpected years of a yearly budget surplus due to the dot.com boom. It wasn't going to last no matter how you sliced it. As for spending wildly, some truth and wars for our freedom are expensive...

[nmh]

This is one TWISTED article!


Geesh!

It's NOT the fault of Bush that people are by choice, OVER EXTENDED - credit card debt, not saving etc.. It is the fault of the people DOING THIS.

Then we have this idiotic and illogical comparison:

"The Bush administration may be Bible-friendly, but it learns not from the Good Book. It certainly didn't take anything from the story of Joseph -- the government adviser who urged setting aside grain during the seven fat years to feed people in the seven lean ones."

It is NOT the role of OUR government to now encompass bailing people out of their debt. We are a Republic. We are a democracy and in THIS country people are to be responsible for their spending and lack of spending.

Nothing like taking the Bible OUT OF CONTEXT to promote MORE government taking care of you and at the same time blaming Bush for peoples INDIVIDUAL bad decisions on how they are not managing their finances.

[LizardQueen]

I am old enough, however, to know that you save in the good times so when the lean times show up, you're prepared.

I always think of the old adage "make hay while the sun shines", myself....

LQ

[jrp]

Why bother to save and be prepared for the unexpected? The biggest grasshopper of them all, Big Daddy government, is there to bail you out if things go bad.

[SirLinksalot]

<<<<
as rising interest rates sink a people floating on debt
>>>>>

How can this be Bush's or any president's fault ? Whatever became of personal responsibility ?

If you borrow more than you can pay, I don't see how this becomes the fault of the president.

[Only1choice____Freedom]

I always though it was "Be Repaired"

[SoFloFreeper]

I think this is a lot of fearmongering. Unemployment is low, inflation is tamed, and the stock market is slowly but steadily rising. The price of oil is a concern but it isn't breaking the bank...and many think oil is riding a "bubble", just like many think the housing market is on a "bubble". Steve Forbes says oil we be at $35 a barrel this time next year.

Americans ARE smart enough, I think, to realize a liberal "government is the answer to every problem" solution isn't the way to go. So while we ought to be concerned about the economy, we needn't panic.

The criticisms of Bush's domestic spending seem to be well-founded, but if that spending is for Homeland Security--and I think much of it is--then I don't have a problem with such an increase. I heard Bush say last year that his NON-DISCRETIONARY, NON-HOMELAND SECURITY increases in budget were around 4%.

Additionally, Bush's tax cuts have increased revenues into the treasury by about $112 Billion. Unfortunately for the budget hawks, most of that will probably go to Katrina Relief; but it is impolitic to say the feds shouldn't help that area rebuild in some ways.

So, there is my 2 cents in this discussion.

[nmh]

Did you bother to read this crap carefully?

"As the fable goes: All summer, the ants worked hard, busily storing grain. The grasshopper just played. Come winter, the grasshopper begged the ants for some of their corn. The ants asked him why he hadn't gotten ready for winter. He responded, "I was so busy singing that I hadn't the time."

In a nutshell, God wants us to be INDIVIDUALLY responsible. This writer wants us to depend more and more on government for our needs - even when we are willing;y, by choice being irresponsible.
That "fable" is taken from the Bible. When it is convenient then the other story pops up form the "Good Book" because THAT fits the agenda of the person writing this dribble - MORE government taking care of people but notice how the ant "fable" actually a parable doesn't apply. It is GOD that wants us to be prudent and uses the parable, in the "good Book", not a "fable" to illustrate what He wants us to do.

[wideawake]

There are several problems with this analysis.

(1) The alleged housing bubble.

There is no housing bubble. There are more people living in America and jobs are becoming more and more concentrated in a handful of states and urban centers.

Therefore, in many housing markets prices have gone up considerably - this is not a bubble, it is a natural outcome of the law of supply and demand.

In my town, housing prices have gone up 50% in the past two years. This is due to a combination of two factors that are being replicated over much of the country: (a) my town is conveniently located within an hour of NYC by train, bus, ferry and highway, (b) zoning laws limit the amount of land in my town that can still be developed.

Demand has grown and supply has remained relatively static.

This leads me to point

(2) America's savings rate is berated as low compared to high-savings countries like Japan.

However, most of Japanese savings are held in postal accounts - the US equivalent of passbook savings accounts. They pay minimal interest and are about the least profitable investment imaginable.

A very large number of Japanese and European people rent all their lives and never own a home.

In contrast Americans save their money in their homes, which are a good and profitable investment with a higher return than passbook savings accounts.

Yes, there are plenty of Americans who save nothing in a bank or in a home and live off maxed-out credit cards and from paycheck to paycheck. These peopel are not the majority and there are plenty of them in every developed country, not just the US.

[ravingnutter]

How many of you out there have six months' worth of savings?

Well, I did have, until I built a new house last year, LOL! We, however, did get a fixed rate 20 year note and have been doubling up on the payments. We are currently paid 3 months ahead and now the extra payments go towards the principle. And, of course, we are trying to rebuild our savings. I had my share of lean times in the past raising my kids as a single mother...never want to go there again. But then, I have already warned my kids, I am leaving them all the money they owe me, I will enjoy myself now.

[nmh]

What are these proverbs telling you?


Proverbs 6:6

[6] Go to the ant, thou sluggard; consider her ways, and be wise:


Proverbs 30:25

[25] The ants are a people not strong, yet they prepare their meat in the summer;

Is it the message the author wants you to have?

Being responsible? Being prudent as individuals?

Did you know the hungry ant works his arse off? The little ant will lug, I many times his body weight in food to others and store up? Does it sound like the ant is waiting for others to feed him and take care of him?

Hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm?

This is what God wants us to do - not be dependent on others.

There are other verses in there but I leave that for you to discover.

[BJungNan]

Consumer spending as been the fuel of the U.S. economy for a long time. The problem is not how much of their disposable income Americans are spending, it is how much the government is taking of that disposable income in the form of taxes.

[uncitizen]

Clinton was just in the right place at the right time and had very little to do with the 90's boom.

Oh yes he did! He was printing money like it was going out of style to keep the ecomony riding high. And it didn't take long once he was out of office for that artificial wealth bubble to burst.

[Reeses]

I think this is interesting: the federal government's financial facts presented as a corporate financial statement: www.fms.treas.gov/fr

[television is just wrong]

There is way too much debt out there, but when a basic passenger car is around $25,000.00 and you need transportation, the debt is going to be high. Things cost outrageous amounts these days. Salaries are not going up in the same fashion.

A house down the street from me 1100 square feet, two bedrooms, one bath, $699,000.00?? The monthly payment with NO money down is over $3,000.00 a month??? OUCH. Going to take 5 people working to pay for it.

[Bommer]

President Bush inherited a handsome budget surplus.

Geezus people are stupid! They honestly believe that there was a warehouse full of unspent money! The surplus was PROJECTED figures, andPROJECTED figures only! I have yet to see the photo of the budget surplus!

[SevenDaysInMay]

Put at least $1 million in gold and spare change in lead, tin, copper, sulphur, salt peter, and charcoal futures.

Learn vegitable gardening and canning like great-grandmother.

[Nik Naym]

"President Bush inherited a handsome budget surplus."

What a load of hooey. The idea here is for the writer to imply that there was a pile of cash sitting around.

The national DEBT was and still is there. There is and was no "surplus" of any kind.

So many supposedly intelligent people can't seem to understand that a zero budget deficit does NOT mean there is no DEBT.

DEFICIT is not the same as DEBT.

[petercooper]

http://www.daveramsey.com/

[petercooper]

http://www.sharebuilder.com/about_us/jump/nsd/index.htm