Listening to talk radio this morning, the host asked listeners what the deal was with their reaction to the financial situation of this country. Why aren’t they panicking? Why is everyone continuing on as if nothing has happened? As large sums of money get thrown around in conversation like they’re nothing, it does seem a bit odd that the average person on the street seems somewhat disinterested in talking about the economy. Is it because we’re just so sick of the doom a gloom — or do people actually buy into the idea that this crisis is a creation of the media, as opposed to a legimately disasterous policy debacle?
I’m certainly aware of these bailout and their long-term impact on me, my family, my business, my goals, and ultimately my entire future. I’ve heard so many people say that the losses of the stock market had no impact on them, and therefore how can it really be that bad, as I’ve watched my investments’ value cut nearly in half. Investments that aren’t just stocks, but 401(k) plans I packed tight with money for the 2 1/2 years I worked at Expeditors for tax reasons. Le sigh…
I also notice the price cuts all over the place, even Starbucks was offering 20% off all merchandise and whole bean coffee in their store – and if you imagine that is happening nationwide then that could indicate a significant drop in profits. So what am I doing, panicking? No, but I do think it’s important to have our eyes wide open now and through the coming months while Barack Obame takes over the roll of president. The risk of further dillusionment of Americans towards their government is great.
There’s good reason to believe prices will be going back up after a few months of price cuts. Once peopel turn over their current inventory, they will be buying less. I think purging inventory is about the only reason we’re seeing these cuts right now. There is a huge swath of newly minted money entering the economy, so inflation will be here soon.