Friday, June 06, 2008

Economic Troubles on D-Day

Economies goes up and down. For those thirty and younger, they have not really known tough times. It is likely that the bad news we received to day -- $139/barrel of oil, a 400 point drop in the DOW, an increase to 5.5 percent in the unemployment rate, and foreclosures rates at all-time highs -- is probably a sign of things to come.

For the average person and business, this is coming down to the price of energy.

With more and more of our money going to energy, less and less is going to other things. We have already curtailed our discretionary spending. We eat out less. We don't go to sporting events. We don't travel far for family gatherings -- they will occur less-frequent. We buy less food at the supermarket, opting for generic rather name brand. The list goes on and on.

There is no reason to think the next month or quarter or year will not worsen. We all adjust in our own ways; but adjust we must.

Despite the issues, we are not yet uncomfortable as a society; but we are leaning in that direction. In general, things are not "that" bad. It gets bad when unemployment is 8-10 percent; gas is over $6-8 a gallon, the dollar is not gaining on the major currencies, and the DOW and NASDAQ have fallen 25-30 percent below their current levels.

We just hope government's response is not higher taxes, more spending and more regulations. Unfortunately, we all know that's what it will do.

While today's news is not the best, today is a date worth reflecting upon. D-Day, 6/6/1944, was one of the most memorable days in our nation's history. Few things choke me up, but one topic that always gets me is D-Day and our WWII sacrifices. I thank the Lord for the men and women who served with valor, against all odds, giving their all for our liberty and freedom. It is too bad the government and our citizens are doing everything to eliminate those freedoms. And I am not talking about gays' right to marry; give me a break.

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