The Economic News Is Too Depressing, Lie to Me By: Curtis Ophoven 4/6/2009 - 8 Comments The other day I was watching an interview with Ben Stein and Ben suggested that the media was making the economic crisis worse by continually publishing bad news. Your Ad Here We need the honest news, bad or good, and right now it’s mostly bad.  The media is just reporting the news, like it or not, the economic is in a downward spiral with a quickly rising unemployment rate that is now at 8.5%. The saving rate is going up, but that is exactly was we need to recapitalize the financial industry and build a personal finance safety net for each family to avoid more bankruptcy and more foreclosures. The politicians lie all day long and look were they got us?  More lies will only get us into more trouble.  Get Serious It’s time to get serious about the economic crisis. If you don’t have a budget, it’s time to get one.  America is on the verge of a major financial collapse that is just getting started.  The big crash is still to come, with the collapse of the dollar.  The economic problem is so big that there is no way the government will be able to stop a deep recession.  My advice is to get over it as soon as you can and focus on solutions for your family.  Create a family budget, find things to cut back on and get out of debt as fast as you can.  Get a better financial education and find or create new jobs. Psychologists say we deal with a tragedy in five steps. 1. Denial, 2. Anger, 3. Bargaining, 4. Depression, 5. Acceptance  Pretend the economic problems do not exist, will not help. We need to get to #5 Acceptance, as fast as we can so that we can focus on tough decisions to cut back on spending and increase savings. Increase Savings The government should be leading the way, with drastic spending cuts and ways to increase our national sovereign wealth fund, while paying down the national debt. How effective is it for the government and tell us one thing and do another?  If we all followed the government’s example and continued to borrow and spend like drunken sailors, the economic would have no hope.  The only hope we have is in personal savings, because savings and production are the only way to produce wealth. True hope for a better economic future is found in saving money. The government’s budget deficits only leads to more economic failure and everyone seems to understand this. The very fact that the personal savings rate is increasing while the government is trying everything it can to encourage spending is a clear indication that the people understand economics better than the government.  The increase in personal savings is proof that no one actually believes the government’s plan will work.  There is virtually zero faith that the government will be successful in spending the economy out of this financial crisis.  If an increase in spending was the answer then everyone would be doing it. Yet, Obama and congress think they can pull the wool over our eyes and revive the economy just enough to get re-elected.  The people have been lied to too many times. The gig is up. Only the truth can set us free. Related Articles 7 Reasons to Grow Your Savings Account While You Are Still Employed 7 Reasons Why Banks Should Increase Interest Rates If You Still Don’t Think Inflation Is Going to be a Problem Anytime Soon, Look at This 7 Most Dangerous Threats to America What Can I Cut Back On?   Subscribe via RSS Copyright © 2010 PennyJobs.com. All rights reserved. << FREE >> Weekly Newsletter... Signup today and start receiving our free weekly newsletter! Reader Comments Comment 1 Jeffad Says: on Monday, April 06, 2009 7:03:42 PM Will the stimulus help in the long term? Maybe, but that’s likely to come at the expense of deficit and inflation. We have been through several downturns before (see, for instance, http://www.recessioninfocenter.comso, maybe we should just accept that it’s part of the economic cycle Comment 2 Rick Vaughn Says: on Monday, April 06, 2009 8:08:16 PM Curtis, "Financial collapse" the destruction of the dollar. I hope your wrong. Comment 3 Student Says: on Wednesday, April 08, 2009 10:06:09 AM The personal savings rate is increased because of fear. The government does not have fear, since they are playing with tax payers money and their only goal is re-election. Comment 4 MoneyEnergy Says: on Wednesday, April 08, 2009 11:09:57 PM Curt, you should check out the videos on YouTube of interviews with Gerald Celente.... if you haven't yet. That will really get you worked up! kept me up for a few nights... The bear market rally has been a nice way to keep us all from thinking about the real doom and gloom. Plus, we've been floating on a post-G20-high. Still waiting to see how that falls out. Comment 5 Curt Says: on Thursday, April 09, 2009 10:03:15 PM @MoneyEnergy - Yes, I have hear Gerald Celente before in many interviews. He is CEO of Trends Research Institute, who has predicted many economic issues around the world that have come to past. wikipedia says: http://en.wikipedia.org/wiki/Gerald_Celente "He is noted for predicting the 1987 stock market crash and the fall of the Soviet Union. He says the Fed is exacerbating the economic crisis of 2008 by "bailing out their buddies with cheap money". The dollar is going to drop and hyperinflation around the corner as they have done in several other countries. " "On November 14, 2008, Celente appeared on Fox Business Network and predicted economic depression, tax rebellions, food riots, and more concern for buying food than Christmas presents by 2012 in the United States.[1][12] Celente also has predicted in his Top Trends of 2009 newsletter that governments across the country would be squeezing the little guy for every last dime wherever it could." here is the latest youtude.com video http://www.youtube.com/watch?v=0QDxwbJlKDw Comment 6 beach guy Says: on Saturday, April 18, 2009 11:30:15 AM There is also a school of thought that says this time is different. Decades ago, stimulus spending resulted in "bang for the buck" and generated multiples of dollars spent on increased GDP for each dollar the gov spent. That ratio has been in decline, years ago went less than parity, and now is clearly NEGATIVE (GDP falling despite enormous spending). The reasons relate to the type of spending (wasteful, wars, no bid contracts, pork), as well as reaching a critical inflection point in debt service. This theory says the increased spending actually will reinforce a downward spiral of GDP. It also claims the printing/blowing of trillions of dollars will only temporarily help and when the money runs out, we get a double dip recession quite worse than now (because only a bigger non-producing government and mountains of debt were created, with no new means to pay for it except the continued destruction of the dollar). Can u say Zimbabwai? CHeerio and have a REALLY NICE DAY! Write a Comment Please keep comments civil and on-topic. Abusive or inappropriate comments will be removed without warning.  Name (required)     Email Address (required)     Website URL  Comment

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