Great article here The Recession Is Not A Lifestyle Choice.
Reminds me a bit of my recession culture article of which I wrote a part II and never posted it.
I wrote another one about whether the recession will be long and deep or not.
I still think my assessment is right:
The recession will be over when we realize that our previous economy was artificial, unsustainable, and we should not strive to reproduce it. At that point of realization, businessmen, investors, speculators and ordinary people will return to appreciate basic principles: value, service, efficiency, financial prudence—- a respect for money and where it comes from— rather than obsessing over things you don’t need, don’t improve the value of your life and leave you wanting more things that will also not make you happy– but for lack of anything else to want or do will keep you busy chasing them.
I think what the above articles are trying to say is that we need to not think of the recession as something that just “happened to us”. A phase or a cycle.
We’re a nation of point missers and we need to not miss the lesson here.
We were acting like we’re rich. We’re not rich.
If you’d like please look at this complex chart above to help elucidate.
I’ll break it down quickly:
- We thought we had a lot of money because everyone was ordering stuff they couldn’t afford
- We sold everyone stuff (that they couldn’t afford) and bought stuff (that we thought we could afford)
- After floating their bills and them floating ours, eventually the bills had to be paid. Well let me go cash in my house. Oops no money there. My car. No money there. My paycheck! Oops no job.
That pretty much sums it up.