HUTCHINSON, Kan. - It's easy to become discouraged listening to the litany of bad news about the economy. This is particularly true if your information is coming from the rant radio crowd. One can imagine Limbaugh at the point of wetting himself as he gleefully reports the latest figures.
However when listening to the figures relating to declining home purchases it struck me that this could be considered a very positive indicator.
Drunk on credit for too long the American public is sobering up and starting to practice some common sense and self control. This is also evident in the shrinking amount of credit card debt. Though it may be perceived by some as negative the other side of that argument is that in the long run our economy will become stronger as consumers become smarter. The glory days of binge spending may be behind us but a slower, saner brand of consumerism could provide the kind of stability so sorely needed.
Your right people have become way too "drunk on credit". As for talk radio I listen to Dave Ramsey and you wouldnt believe the debts some people ring up. Yesterday a caller said they had over $50k of credit card debt with a $110k income. Why? She admitted they were "addicted to restaurants". Plus people always thought their rising home values would be their nest egg. Now we have all these people with little equity left in their homes, massive credit debt, and depleted stock investments. Will we ever recover?
Brad, it is quite evident that wealth does not always relate to intelligence! With 110K income and 50K credit card debt, inteligence is not driving their economic decisions.