Talk From Your Own Perspective

Posted: September 17, 2008 in Commentary, Economy

When it comes to talking about the state of the economy, I get so tired talking with folks who parrot newspaper headlines as if it represents their own economic experience. Not too long ago, someone was whining to me about how bad the economy was and how he couldn’t wait until Bush got out of office so that the economy could recover. In his little rant, he also tied it all in to gas prices.

Mind you, he told all of this AFTER giving me a tour of all the recent landscape work he had done to his backyard and telling me where he was going to put the pool and basketball court.

Today, Rasmussen posted a very interesting poll that showed that despite all the bad news coming from Wall Street, the vast majority of non-investors are unfazed.

Investor confidence stabilized on Wednesday morning after falling sharply over the previous few days. While the fallout from the finance sector difficulties have created a glum mood on Wall Street, non-Investors are unfazed by the turmoil.

Overall, the Rasmussen Consumer Index fell less than a point on Wednesday morning to 82.3. That Index, which measures the economic confidence of American consumers on a daily basis, is down two points from a week ago but up two points from a month ago. It remains near the highest levels of the past eight months.

The Rasmussen Investor Index actually inched up half-a-point on Wednesday morning to 93.2. But, that’s still down ten points since Saturday morning.

The confidence of those who do not invest is currently measured at 68.6, up two points since Saturday morning.

The percentage of investors who rate their own finances as good or excellent has fallen five points since Saturday, from 57% to 52%.

Movement among non-Investors has been in the opposite direction, up four points from 23% to 27%. (more…)

I say the same thing about middle-class Black folks who feel the government needs to do more to help poor Black folks. Yet when you ask them, in most cases they themselves did not require government intervention to get to where they are today. Thomas Sowell, I think addressed this issue in his latest piece “The High Cost of Racial Hype”.

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Comments
  1. DarkStar says:

    Is my perspective just me, or that, also, of a sister-in-law in the rust belt who is a mechanical engineer and looking for a job for 8 months now? Or another sister-in-law who just got full time work 2 years after her 1st baby was born? Or a steel worker friend (who I reference in a post) who has trouble getting steel work?

    I get your point, but I have troubles with it as well.

    My income increased over last year, but at a slower rate than my constant expenses: groceries and energy. And I have cut back some.

  2. Duane says:

    Is my perspective just me…

    I thought that was the whole idea behind “one man, one vote?” Or are we to think collectively?

  3. DarkStar says:

    What does thinking collectively have to do with my point?

    I’m saying that if I’m doing well, but see others around not doing well, should that not affect my point of view?

  4. Duane says:

    I’m saying that if I’m doing well, but see others around not doing well, should that not affect my point of view?

    As it pertains to how you vote (what the guy I talked about in the post was refering to), I don’t see why it should.

    The problem I am referring to here is when folks purposefully make no distinction between the woes on Wall Street versus their own experience on Main Street. This individual has done well for himself financially in these past 8 years. Yet listening to him you would think that he was right there with your sister-in-law.

  5. Give it a rest says:

    “economic confidence of American consumers”

    How about the economic confidence of the American AND international investor in regard to the Unites States economy,
    That would be a far better indicator of how healthy our economy is.
    The American consumer is the entity that is flushing our wealth away on Chinese made trinkets. The American and interantional investors are those folks that are actually pumping money into our economy to help keep us afloat.

    When what I read does NOT jive with what I see, I know it is time to put down the reading material and start paying more attention to the world and people around me.

    Outside of the few civil servents that I know I do not know anyone employed in the private sector under the age of 45 that has a pension. Everyone I know is primarily dependent on IRAs and 401ks to fund their retirement. We are all taking a beating and expecting to continue getting beat for the rest of the year at the least.

    In all honesty the vast majority of American do NOT understand what the current economic crisis is all about. If they did they would be far more concerned then they appear today. We all looking a a serious credit crunch that will effect many folks in the near future. If folks believe they will be immune because they do not have money directly tied up in the stock market they are rather foolish.

    Who are these people that they are polling? What level of education do they posssess? Do they even understand what a mortgage backed security actually is? Do they not understand that while they might not be committed to the exchanges most likely their employer and the company’s assest are? Do they have a clue what will happen if foriegn investors lose faith in the US economy?

    Anyone who is getting paid in US dollars in today’s economy needs to be very concerned.

  6. S. Cain says:

    Say “fiat currency” to most people and they’ll think you were talking about some kind of European sportscar. I wasn’t aware, had nil-to-nuthin of an idea of how the Federal Reserve System worked until, fairly recently; two years ago I was in the dark. “Fiat” means false, fake, not real. Our money isn’t based on some tangible commodity (i.e. precious metals)back in 1933 the Fed was created and also, the Gold Confiscation Act demanded all gold coins to be given to the government. (Think about it: No more gold coins. That’s all fantasy today…) Our money is now, in a sense, “backed” based solely on the *value* of the money *in and of itself*. A $100 dollar bill is what it is worth, because we, as a people, subscribe to it the *value* intrinsic in it. Pick up a $100 dollar bill on a windy day, or save a cat in the street? you tell me. We don’t need $100,000 notes in our pockets, like they have some places on the globe(I’m vague on specs but I know inflation is wreaking places) because the value of a single $100 is,well, fairly financially influential, in both domestic and foreign markets. Our paper currency is systematically created and destroyed in order to keep in balance a steady, consistent “valuation” of the currency. So, watch out when you hear about “devaluation” of the dollar- A BANK is NOT a SAFE place to keep money…in my opinion; I’s keeps little in there, with internets hackninin’ and the whole 9 yards. I wasn’t born but I know in 1929 many people lost the little they had.

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