When you stimulate spending with more debt in a debt drenched economy, you are borrowing purchasing power from the future. The US is taxing presently at the rate of 17% of GDP and spending at the rate of 22%. This gap must be addressed from both ends. David Stockman, OMB director Under President Reagan. (I always wish David’s tone was less whiny, but his content is very good.)
Danielle was a guest today on Talk Digital Network talking about this week’s developments in the economy and world markets. You can listen to the audio clip here.
Willie Jolley is the host of the Sirius XM talk show, The Willie Jolley Wealthy Ways Radio Show, a motivational speaker and the author of the new book Turn Setbacks Into Greenbacks. I agree with much of his sentiment in this clip with my friend Aron Task (hat tip: Dave). I think stocks may get quite a lot cheaper yet before they will present an exciting buying opportunity.
But I agree with Willie’s comments about people needing to break out of doom and gloom and victim mode to find creative ideas, and practical steps to find our way through tough times. Instead of trying to make quick bucks in broken financial markets, people should focus now on building their own skills, talents, and self-discipline. Tough times will be the making of those who do.
