What in the heck is going on here?

Are you watching the stock market? The Mortgage crisis? The oil situation?

We are free falling into the worst economic period since the great depression.

Think not? Consider this.

The Wall Street Journal says fuel prices could go to between $8.00 and $12.00 by years end. The Housing market that everyone thought would begin to rebound by mid summer is now predicted to continue to tumble for several more years. The world economic scene has NEVER been so vulnerable.

Iran vs Israel? Can you say WWIII? China owns everything of any value in the US and what they don’t own they are negotiating for right now.

Individual Debt is 10 times higher than just 5 years ago.

When we started in financial services 15 1/2 years ago 88% of disposable income of the average American family was dedicated to personal debt. today 135% is dedicated to debt.

How is that possible? We spend far more than we earn on average by using debt to pay for food gas utilities clothing perishable goods.

Where does that leave us?

IMPENDING DISASTER!

We coach thousands of families yearly who are average income earners with a home, 2 kids, 2 cars, both Mom and; Dad work, they feel like they are getting along alright until we do a reflective budget.

SHOCK & AWE!

They are upside down by hundreds even thousands of dollars per month.
How is it that they don’t know? They stretch the check by carrying more and more debt each month. The sad news is that if they don’t submit to some serious changes in the money management they will loose the house, go bankrupt, divorce. 78% of the families who go through this scenario divorce within 3 years.

What impact is this having on the stock market? Check your mutual funds since January.

Conservative speculators say we will see a much greater loss of value in the market this time than in 2000-2003 and it will last far longer.

What can we do? What should we do first?

STOP THE BLEEDING!!!

Do what ever you have to do to get back to better than break even and then have an aggressive strategy to eliminate debt.

STOP the contribution to the 401k, retirement plan etc, temporarily and pay down debt. That flies in the face of everything we have been taught but we must get free from the slavery created by debt.

More later.

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