Does Anyone feel like Bailing

[tw]

Originally Posted by Pico and ME

Secure? As in reducing debt?

Absolutely. I was surprised how many don't get this. First pay off the debt with highest interest rates - ie credit card. Pay that off even if at the expense of savings - the lowest interest rate. Then pay off car loans (the next highest interest rate) which a fiscally responsible person does not have anyway.

Some people foolishly refuse to use savings to eliminate high interest rate debt. They don't get it. Money for an emergency is a credit card with no outstanding debt. Money in a savings account at 1% or 2% while the credit card is demanding a 12% interest rate payment? That is a no brainer. Move that 1% saving to eliminate a 12% expense. Do it now. Stop using credit (debit) cards until those balances are zero. Get secure.

This is not an economy to be exposed. If others go bankrupt, then your income or risk gets even worse. Economics does this by many methods – inflation, dropping dollar, corporate downsizing, higher rents and a deadlocked housing market, loss of benefits, or the worst – stagflation.

We also know the more that government does to alleviate this (corporate welfare, tax cuts, increased tariffs, special benefits to domestic industries), then the worse economics takes revenge later.

How bad will it be? Automakers were given $25billion. (GM is only worth $5billion because GM products are so bad and GM has no solution in the innovation pipeline.) Automakers are already going back to government for more money. That means your financial security is at even greater risk.