Money on My Mind

Okay, I usually try not to talk money mainly because I'm a novice to it all. I read Suze Orman and other financial gurus and follow their advice as much as my pockets will allow. But all of this financial news I am bombarded with on a daily basis is finally wearing me down. I'm actually wondering now if putting my money in the old school shoe box account is starting to make sense, however, threat of fire or burglery is preventing me from taking such a drastic step. Yet I see why people are considering it. See, even though your money is insured (well up to about 100 or 200k per bank, and not account, and Lord knows I don't have anything saved even close to that to break a sweat) you got to wonder how our money would really be paid back to us if we're in a deficit and bailing out all of these big companies out of big debt.

And I don't care what the republican's say, if tax payers are helping out Fannie and Freddie Mac and AIG then how are taxes not going to rise? This is an extra expense! I'm no financial maveric but the thought seems logical to me that with a new debt so to speak, comes a higher payment. Like you purchase a new item on your credit card, the monthly bill goes up. So my train of thought would believe that if we have some new companies to pay for then something's gotta rise that we pay on a regular basis which would be taxes.

And I'm all for a higher tax on the rich and less so on the middle and lower classes. Typically the middle class always feels the brunt of it. We don't make enough for it not to matter and we make too much to get any incentives or real breaks. Republicans don't favor higher taxes on the rich, who are not the majority, because they state it will hurt the economy. My assumption is this is because if the rich start feeling the burn they will cut back on spending thus hurting our whole capitalist set up. But I have to say if the middle class, which I believe I believe is the majority, stops spending as much due to higher taxes/costs then wouldn't that hurt the economy even more?

The reality is, as long as the middle class suffers and as a results deminishes by finding themselves on the lower class living, the greater our country will suffer. If you check out any third world country you will notice one big factor, a small or lack of middle class. The middle class is the backbone of any thriving society so shouldn't we be treated with a little more respect?

It's a hope that this is like our usual recession (and I mean usual, our capatalist set up makes for a recession at least every decade) and it will end in the new year. But realistic finanical advisors are relating this to a financial storm of the centry. We haven't yet hit Depression crisis but we are well past a usual recession. This one might see us into 2010. So maybe I'll be holding off on my big Europe trip to see where this economy goes.