Another Recession?

Many of the economic experts say we are headed for another recession. In an attempt to stifle a prolonged economic turn down, the Fed has lowered interests rates. Many people agree that our economy is cyclical, so does this mean that recessions are inevitable? Does the mere fact that "the experts" say we may be heading to a recession make it happen? In a recession, who is actually hurt? It is said many jobs are lost during a recession, but I have not known of one person who was laid off or let go as the victim of an economic turn down. They say jobs are scarce during a recession. Hey Bud, a good job is hard to come by any time! So, from my standpoint, a recession does not affect me as much as the experts say. Or is this just another one of these situations where it all looks bad on paper? Like the stock market.

Much of the direction in the stock market has to do with the "emotions" reflected by the general public, as reported by the media. If the general public is reported as being confident, then the market is up. If there is skepticism, then the market is down. Intangibles control the tangible. And the media controls our feelings on the intangibles. A media that is run by big money and big business.

Unfortunately, our country is insatiable. We want more and more and when we get it, we want even more. Big business thrives on this. We lavish ourselves on every luxury, we pamper ourselves with all the amenities and we spoil ourselves rotten. We build ourselves up so high, that when we hear news of a possible recession, we panic. But how much are we really affected?

What if we put all our credit cards away and just bought things on a cash basis? Would the average Joe be better off? I have heard it say that this country runs on credit, but isn't that what they want us to believe? Who really benefits from credit? Big business! Sure you need credit for some things, like buying a house or a car, but that should be just about it. The average Joe is so far in debt to credit cards, it has become a maor part of their monthly budget.

With most of the population burdened with huge credit card bills, (just look at all the debt relief programs out there) is it no wonder people are losing their houses at record rates? A high rate of foreclosure, when focused on again and again by the media leads to what? The general public's negative view of the economy, which leads to what? A decline in the stock market, which leads to what? Recession!

The government is starting programs to help people to keep from losing their houses. But are they really treating the right symptom? It is said that sub-prime lending institutions are to blame for much of the problem. (I wonder about this premise too. Give someone a loan with a high interest rate, because they have had problems with money. Won't that compound their problems?) But why can't people keep up with their mortgages. Could it be because they are overextending themselves with other credit? If the government spent more time and money helping people understand about credit and how to manage it, would that be a more effective way to stop this downward spiral? Or would that step on too many "big business" toes?

If people were living within their means by eliminating credit, outside of buying a house or a car, wouldn't that help prevent a majority of foreclosures? If people eliminated their huge credit card bills, wouldn't they actually live a less stressful and more enjoyable life? If we are living a less stressful and enjoyable life, isn't our general perception of things going to be more positive? And if your general perception of things were more positive, would we be looking at a possible recession?