Dow Jones Industrial Average hits another all-time high.

So the market is in healthy shape right now. The economy in general is doing very well. The housing market has crashed in the past six months, but that is nothing to worry about. Prices of homes have appreciated ridiculously over the past few years due to low interest rates. Home prices are now adjusting back to a reasonable value. Only the flippers are the ones who have been hurt by the crash. Anyone who plans on living in their house for years to come will be just fine.

Anyways, this economy is great! Unemployment is at a record low. Inflation is moderating. Corporate profits remain strong. I am not a Republican when it comes to social issues, but the Bush economic policies, with regards to taxes, is paying off. Reducing taxes actually increased government revenue. This sounds illogical doesn’t it? Well, study up on supply-side economics and the Laffer curve and you  will see why.

The worry I have is the national debt, budget deficit, and social security. These issues will destroy the country much faster than al-Qaeda can. The United States needs to undergo some fiscal responsibility. Cut expenditures now! As for my fellow debtor Americans, you are just as bad. What are thinking?! Personal debt is at an all-time high and the national savings rate is negative! If this trend continues, a much stronger barrier will form between those who are financially responsible and those who are not. The former will control the latter – moreso than now. My fellow Americans, you are screwed and your saftey blanket (the government) is screwed unless the trend reverses. You should only borrow money to make money and never to live off of. The problem is not outsourcing, lay-offs  or low paying jobs. The problem is the expectation of a certain lifestyle that many Americans believe they are entitled to.

Get your act together or you and your descendents will suffer.

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