raising4daughters

Can We Rely on Stock Prices Going Back Up?

Roger - thanks for the good column. I got the same advice from my Depression-era grandparents for free many years ago.

The problem is that our government has refused to live below its means and has thus set a terrible example for its citizens. Run up debt. No problem. Just kick the can down the road.

The answers to our economic troubles are actually quite simple, but it involves truths that few want to hear and sacrifices that no one (from the billionaire financier to the local teacher) wants to make. That's what troubles me.

We need more engineers and fewer lawyers and social workers. We need more savings and less consumption. We need REAL health INSURANCE, not full coverage (free medical) care for some while others go without. We need for people to live in 1,000 - 2,500 sq. ft. homes rather than 5,000 sq. ft. McMansions that they can't afford.

We need a currency that's back by real, hard assets so we aren't merely trading debt.

In short, we need to rely on the advice that our grandparents (and occasionally some prophets) gave us. It's not that hard.