Tax Stimulus Offers/Sales-a-plenty!

Hi Etta,

As a credit union person all my life, I say pay down debt and save your money. We live in a society were credit is too easy to come by and too hard to pay off. I believe we should spend when we have a need and not to get caught up in keeping up with the neighbors. Impulse buying is one way to get into trouble. And if you have kids, just say no when they want things. I always told my kids that it is nice to want.

Do I think the rebates will help stimulate the economy? Maybe for a very short time, if we all spend our rebate… but in the longer term, I don’t see it helping a lot. In Ohio, we have a serious mortgage situation. Our local newspaper had over three full pages of foreclosures notices last week. Until we find a way to solve the mortgage crisis and keep people in their homes, we cannot expect to see the economic picture change.

Last August, I read that it will take twelve to eighteen months for the mortgage crisis to correct itself. I still hear those same numbers today so we are not making any progress in this area. Until the housing market rebounds, I don’t look for an economic rebound. If houses are being built then consumers are buying items for inside those houses. So much of our economic activity is related closely to the housing market.

I’m pleased to hear that you enjoy my blog. I enjoy responding to questions and sharing my thoughts.

Thanks,

Al

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