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12/27/2010

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BJ

When I started reading your post I was planning to make the following comment, which as it turns out, substantiates what you later stated.

My personal spending has increased recently, I actually have discretionary income now. The reason being, I recently went on food stamps and stopped paying my credit cards and mortgage.

As a small business owner, this year was significantly worse than last year. The bottom fell out in June. Back in January, I thought I had survived the Great Recession, but I was wrong.

Other business owners report the same. Consumer Metrics Institute would appear to indicate there were many of us, at least for those selling online.

http://www.consumerindexes.com/

There are a lot of jobs out there, I know this, because I keep meeting people with 2-3 of them. Some have primary jobs that should more than cover their expenses, but they don't.

Some claim the spike in gas prices triggered the last recession, what will the current spike do?

Queenbee

"My personal spending has increased recently, I actually have discretionary income now. The reason being, I recently went on food stamps and stopped paying my credit cards and mortgage. "

Since when did stopping paying your bills and going on government assistance become disretionary income? If you have income pay your bills.

BJ

$10 in "discretionary income" doesn't quite cover $1,000 in bills.

But I'm sure the government will report the $10 increase in spending, ignoring the $1,000 in missed payments.

Queenbee

Spike in gas prices? Please. What do you want to pay for gas? 3.00/gal is a bargain in most parts of the world. If you drive 250 miles in a week and get 20 miles to the gallon that is 12.5 gallons. Now that recent "spike" is about .50 a gallon or an additional 6.25 a week. "The Horror" That is one less pack of cigarettes or a can of pepsi a day. Gas prices are not the problem. It is deadbeats who don't work and don't get it.

"I am a small business owner." I am sorry if I seem rude, but you don't own anything. You owe a lot, but hey why pay the bills when you would rather live in you home mortgage free, stiff the Credit Card Companies, eat free government cheese and go to the movies.

Gail

Fluff!

Super Rich: The Greed Game

http://video.google.com/videoplay?docid=6262083407501596844&hl=en#docid=-3305522889894137433

queenbee

BJ sorry you caught me at the wrong time. Didn't mean to body slam you. I am sure you are doing the best you can in a time that is no recession it is a depression and you and your family are the victims. I forgot my social graces and need to be a little more compassionate.

BJ

One way my going broke has increased my "apparent" spending power, thanks to Uncle Sam's debt, is I now spend 4 times as much as I was on food. When they told me how much they were giving me, I thought it was way too much. But once you start buying something other than Ramen and eggs, you quickly learn how much even the basics costs. We are not talking steak here, just ground beef.

I just received a notice of a pending 2.5% increase in natural gas prices, which again, since the taxpayer is paying for it, my apparent spending power will be increasing once again.

By the way, as a taxpayer I helped bail out those who were too large to fail, but when my tiny business went belly up, there is no bailout for me. My clients and suppliers are in the same boat, so it isn't just me.

As far as the credit card companies, they doubled my interest rates when I was current and hadn't missed a payment since day one, 20 years ago. My reward for helping bail them out, being pushed off the cliff, financially, a little quicker.

I'm not trying to justify my actions, just provide a perspective from the other side.

The Arthurian

BJ, sounds like you are... I was gonna say "lucky" but that ain't right. But you'd be worse off without the assistance, certainly.

Forget public debt. It seems to me that if we somehow magically cut *private*sector* debt in half, the private sector would be willing and able to grow again. (For a while at least.) BJ, you'd probably get your customers back.

Nice post, Dave Cohen. My first visit.

Art

Gail

Fascinating, 60 minutes on the 99'rs:

http://www.marketskeptics.com/2010/12/60-minutes-reality-vs-nightly-news.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarketSkeptics+%28Market+Skepticism%29

R

Hello,

Considering only one of every four Americans is living paycheck to paycheck, based on your experience, what suggestions do you have for people to begin to prosper? What are you thinking?

Thank You,

Roth

http://crisisprofit.blogspot.com/

Randy

Even with the propaganda machine running wide open, my sense is that fewer and fewer people are buying the b.s. Millions have their eyes wide open and realize that these phony stats don't have a basis in the average American's reality. Those who refuse to wake up and pay attention are the type who come to my home for a free meal because they spent all the money they had on a camcorder for Christmas. You know who you are.

sharonsj

Savings are down--not because the banks pay almost zero interest on a personal saving account--but because all other prices are going up.

This crap about no inflation is a complete lie. Not only is everything more expensive, from food to energy, but all taxes and fees are going up because the states are going broke too. I have yet to find an average citizen who understands the financial relationship between the state and federal government. Therefore, when Bush gave everyone a so-called tax cut, the states had to make up the shortfall as best they could (and that was before real estate tanked!).

Extending the tax cuts, and reducing the Social Security payroll tax, just screws us more. It cuts back on the revenue coming in to fund Social Security payments--and it will allow Congress to try and privatize the program--just so Wall Street can get more of our money.

If we don't have a real revolution soon, there will be no middle class.

R

Response to Randy and sharonsj:

1) How does the average American wake up? What are a few signs of the awakened American?

2) What is the financial relationship between state and federal government? What is the main cause of the price rise? A revolution, interesting, what is involved in this revolution?

Thank You,

Roth

R

Response to Randy and sharonsj:

1) How does the average American wake up? What are a few signs of the awakened American?

2) What is the financial relationship between state and federal government? What is the main cause of the price rise? A revolution, interesting, what is involved in this revolution?

3) What is one effective general solution?

Thank You,

Roth

http://crisisprofit.blogspot.com/

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