Op-Ed: The credit crunch, the doom and gloom reality

The credit debacle is definitely going down in the history books as one of the worst moments. Everything America has stood for comes into question. The country must learn from this, and act fast.

Today, it seems like a roller coaster when looking at the stock market. People have less money, unemployment checks have been reported to be slow arriving, and jobs are simply evaporating. The doom and gloom reality sucks. People all over the country find credit shrinking along with credit scores. This could mean that the cash only policy will become standard. The fear of loosing money, the drive for the American dream with the white picket fence, and the love for everything now have created an unstable economy. The fear of loosing money is something natural, but it could turn into greedy decisions to ensure wealth. This is problematic for the "average Joe's" and "Joe six packs" that work labor intensive jobs for the most part. More than ever, these people need to learn the ends and outs of business economics. They do not need to be experts, but to have a general idea, so when these politicians say certain crazy ideas, the average population is not easily fooled. People should start by going to the local library, or the Internet. For instance, www.investopedia.com is a great place to get clear and concise definitions and newsletters. For far too long, America has allowed leaders in Washington to make all the decisions without any major input, and this has led to disaster. The American dream is probably the most dangerous idea for low to lower middle class people. It makes them feel that they are not complete without a home mortgage, and a house with extra bedrooms. This had driven people to make unhealthy work decisions, and push their credit to the brink. Credit was designed to help you use other people's money, while your money grows somewhere in an investment or savings. The idea was to pay within 30 days, and allow yourself more freedom in the meantime. However, this has become perverted into a new financial slavery system with no way out. Now, people have high health care issues, no savings, and no help. The unemployment and savings are going to run out for most people by next year, so this financial crunch will get worse. Expect more crime, and scams to be on the rise. So far, identity theft has been a growing factor every year, and this is definitely going to only get harder to fight. The "shop till you drop" philosophy established a nation of gimme now. Americans want the LCD flat screen now, rather than waiting for the price to go down. They listen to marketers with flashing ideas that sell a fantasy. All the while, they loose focus on their responsibilities to pay the bills on time. There is this fallacy that you can help, if you get behind on bills and everything will be okay. This invisible safety net has trapped a lot of people over the years, and this has lead to an increase in homelessness. They live in shelters across the country, and for some reason no one is talking about them. More interviews should be done of the homeless who once had a nice life, and how it unraveled. This could be the best scare America straight with their finances ever! However, as a nation we are not conditioned to ask important questions. We prefer to know what is someone's favorite sport team. In summation, America can recover by going back to basics in economics. This doom and gloom reality will not go away easily, but with the right priorities it can be surmounted. The American people have driven themselves to being overworked to get things they could get with good savings/investing strategies over time. Supply and demand laws have been eroded in the minds of consumers. For example, people must realize there is a lot to consume, but it is not all for you now. Look at your budget, and look at what you demand to live on. The last time I checked, a flat screen TV is not necessary to live. Don't fear saying you can't afford something to friends, family, or yourself. It does not mean you are a failure. It means you understand your personal finances, and want to be savvy about it. We must act before it is too late for the economy to turn around. The video from You Tube truly speaks to our situation. The time to make a change with new economic policies is now more than ever.