The Economic Recovery

 Do not expect a fast recovery for our current economic down turn. In the past down turns the consumer has led the recoveries buy buying again. This time the consumer is pinched and the availability of easy credit is gone. Their credit lines are reduced, the home equity that made them feel richer is greatly reduced. National avarage home equity has gone from near 50% to closer to 25%. And a general feeling that there is a lack of job security has the consumer feeling a whole lot less confident.

The number one talk show host in the country spouts "get out of debt". He is on the air some five hours a day and he is gaining listeners daily. That tells me there is a general feeling that the banks and credit card companies have carried things to far and that not borrowing is a pretty good idea.

Another deciding factor is the aging of the population. Those over fifty folks are saving for retirement in a big way. Keep in mind they represent about one third of the population.

So if the older folks are just not interested in spending, and the younger folks do not have the purchasing power, and the banks and credit card companies are taking advantage of everyone by over charging on rates,and cutting available credit, then where is the spending going to come from?

The government can only stimulate the spending so far, then what? It will be a slow recovery taking five or more years. So set up a long term GET RICH plan and get it started. There will be no fast recovery and your plan to get richer will need to be long term too. Reading the articles on this web site is a good start. But you do have to actually implement your plan.