Regardless if it’s a technical recession or not, I think an adjustment is needed in American thinking. Even though the gov’t. thinks the answer is to continue to encourage us to spend, I hope this small shake up is causing some to save, rethink mortgages outside of budgets restraints, and perhaps even trade in the ole’ SUV. Our worth as a nation need not be based on how much money we spend but on how well we spend it.

Obviously, I’m no expert – just a housewife with wonky ideas. I don’t know of anyone else who is happy with a slow down (not that I am in any way happy for those who are truly suffering to make ends meet).

According to the most recent polls, more than 75% of the American public believes the economy is in bad shape. All three remaining candidates for president are treating the economy as the biggest electoral issue, and all agree the situation is dire.

The normally sanguine Alan Greenspan recently observed that the current economic mess is “the most wrenching” since World War II; Fortune magazine’s Allan Sloan, who’s been covering the business of business for decades says, “I’m more nervous about the world financial system than I’ve ever been in 40 years.

There is no denying that the current financial morass is deep and painful. But taking the long view, there is something both startling and disturbing about the gloom that has settled over Wall Street and the country in general. In fact, looking back over the past century, it would be a stretch to rank the current problems as especially notable or dramatic. Something else is going on – namely a cultural rut of pessimism that is draining our collective energy, blinding us to possibilities, and eroding our position in the world.

Per my earlier posts, I think the above op-ed says it very well. Please read the rest of the article for startling statistics giving historical perspective showing how much we are overreacting to the present economic circumstances. Satan has conditioned us to be permanently dissatisfied with our circumstances, no matter how historically incredible they really are. May we, as did Paul, learn to be content in all circumstances (Philippians 4: 11-12). May we truly appreciate the wonderful gift God has given those of us who are fortunate enough to live in modern America. May we help our fellow citizens see that their dissatisfaction is rooted in spiritual emptiness and not an absence of material things.

Patrick:

The real estate problem is very real, but also a normal correction. Real estate, particularly in So. Cal., tripled in value between 1998 and 2006. Speculation and easy credit drove the market to unsustainable heights. There was obviously going to have to be a serious correction and now is the time. Unfortunately, people blindly entered the market at its peak, with zero down payment adjustable loans and no means to pay them back, absent continued increase in real estate value. That is why you see so many foreclosures, but this is not a bad thing, except for those who stupidly bought at market peak. But most of those folks who are now walking away lost very little equity (except on paper), because they made very small or no down payment.

As for brick and mortar retail, it has been declining for years. Internet sales have been driving that decline. In particular, grocery chains have been losing market share to the warehouse chains such as Costco for years. I remember the grocery strike in So. Cal. a few years ago where the chains were whining even then about the concessions they needed from labor because of their declining market share. So this is nothing new, and is not primarily due to a present recession. I’m sure current market conditions are not helping, but it’s not like this is some sudden apocalypse either.

The stock market is telling the tale. It has stabilized, and is even rising to some extent, because company earnings reports are a lot better than folks were led to believe by the “chicken little” media. I don’t trust the government figures either, but company earnings reports are a definite bellwether.

Bookstore chains — Amazon.com. Enough said.

By the way, “One man I know is facing foreclosure on three homes” should ring bells in your head. Three homes? Can you say “house flipper/speculator”? He deserves his fate, as it is these “easy money” guys who drove the real estate market into this condition.

I like the CATO Institute, but they are just plain wrong on this one. First of all, we would be in Afghanistan in any event. Virtually everyone agrees we should be there. As for Iraq, 85% of us thought going into Iraq was the right thing in 2003. Regardless of whether it was or not, what choice do we have now? We have made tremendous progress there in the past year and a half, and abruptly getting out now would just throw away everything we have sacrificed to date.

As for getting out of Korea and Europe, I’m all for it. Funny how all of the anti-war folks don’t really push for that, though. Why do we have 100,000 + troops in Europe anyway?

Groundless conspiracy theories that take hold in the hearts and minds of otherwise reasonable people scare me more than anything else about the future of America. I think this loss of basic trust in American principles and leadership is a function of our rejection of absolute standards of truth and morality. I refuse to participate in this process by entertaining such notions of conspiracy, especially those supported by not a shred of evidence.

I understand what you are saying about the environmental issue. However, big oil is using the furor over that to still have a windfall.

As far as the mideast goes everytime there is a burp over there watch the prices jump within a period of 12 hours or less. Now I have a real problem thinking of anything positive about our involvement in Iraq. My favorite source for news commentary is the CATO Institute. There is little to look at there to rejoice over. The initial involvement was to roust out terrorists and their supporters. Now we are there to protect them against themselves. Sort of like 55 years in S Korea. Will we be in Iraq for 55 more years too? Those actions are helping inflate oil prices and on the other hands we are going further into debt protecting the government in Iraq who are enjoying large amounts of money from the oil.

I am not much into conspiracy theories but it sure makes one wonder.

I am not looking forward to the next White House or Congress. Whoever it is will be wanting to let the tax cuts expire and dream up new ones to raise. Fun isnt it?