If I Promise to Spend it, Will Obama Send Me Stimulus Money?

Neither Obama nor Congress have any desire to send Mr. ToughMoneyLove any part of the gazillion dollar stimulus packages that are being discussed.  No tax cut, no tax credit, no check in the mail, nada, none.  No, the government wants me on the outside, looking in on the stimulus plan for two reasons: (1)  I make too much money;  and (2) I’m not broke.  (I probably should qualify “I’m not broke” by adding “yet.”  I’m afraid that after the government gets finished stimulating everyone but me, I will go broke through a combination of higher taxes and inflation destroying the value of the dollars we have stashed away in savings.) Read more

Spenders Jumping on the “Shopping is Patriotic” Bandwagon

Black Friday always makes for an interesting study in consumer behavior.  In addition to the shocking news about the Walmart tragedy, commentary from the shoppers themselves is instructive.

Mr. ToughMoneyLove was listening to NPR today when a field reporter caught up with a Black Friday shopper waiting for a Best Buy to open at 4:00 AM. This particular shopper had been in line since 5:00 PM they before.  Explaining herself, she said that “she didn’t have much happening on Thanksgiving.”  I’m guessing that whatever she had going on, it involved closely studying the Black Friday sales fliers. Read more

Liquidity Conflict in the U.S. Economy – Spenders vs. Savers

The Credit System is on Life Support

There was another round of dire warnings issued from Washington yesterday, capped off by a somber speech from President Bush.  The fundamental message is consistent:  The credit markets are clogged.  There is not enough flow of money from lenders to borrowers to support economic growth.  Read more