Does Paying Attention REALLY Matter?

YOU BET IT DOES.....here is why. I got this clip as part of a newsletter from one of the groups I used to work with...Read on!

The growth in bank loans has turned negative to a halt since March. The overall debt burden in the US economy is currently at record levels, raising concerns that a recession, if it occurs, could set off a sharp downward spiral. Household debt is now 131% of disposable income, compared with 93% at the top of the dot com bubble, 79% in the property boom of the late 1980’s, and 62% at the end of the 1970’s.” Shrinking money supply has historically been very bad for the economy. This is surprising information with our real negative interest rate.

In another piece of interesting “news”, Reuters reported that the Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department due to bank failures. The last time the FDIC had borrowed funds from the Treasury was at nearly the tail end of the savings and loan crisis in the early 1990’s. For those of you who do not feel that inflation is the greatest tax we pay when the treasury does not have the money from tax dollars to give the FDIC, the fed will create money out of nothing, decreasing our purchasing power and increasing inflation.

Time for a Review? Make sure you are doing the best you can with your finances.