This hole is getting too deep, dig faster.

There are moments in time where it seems like there is a perfect storm of financial bad news. We are surrounded by panic and miscalculations, job worries, budget concerns, stories about corporate malfeasance, government malfeasance, malfeasant malfeasance…

The conventional wisdom says that we’re in for a tough time: layoffs, recession, dollar worries, declining home values, etc…and the fed seems to think that lowering the costs of borrowing money, “the fed funds rate” will somehow help…even though the borrowing rate is at historical lows and has been for years now…and that extremely low rate is partially what encouraged people to collectively borrow more than they can afford.

Until individuals and banks wake up to the harsh reality that we have all been borrowing from our futures to pay for our presents, the “crisis” is unlikely to stop.

If you make more than you spend, consistently, you will be OK. If you make a LOT more than you spend, now might be a significant opportunity to find a bargain, in stocks, housing, and other stuff.
With any luck, the coming credit crisis will quickly cause people to feel the pain of their financial folly and take steps to fix it.