There was an interesting analysis in “The Economist” this week, looking at the US economy’s current woes and the measures being implemented to turn the tide around.  However, unlike most pieces about the current global economy which try to predict when the economic situation might improve, this article examines what the long-term consequences might be from this current global recession.  If their analysis is correct – which I believe it is – we’ll have to prepare for a dramatic change in our spending habits.

As the article from “The Economist” points out, growth in the US economy for the last few decades has been fueled largely by consumer spending as a result of easier access to credit, thanks in part to companies like General Electric and GM that moved into the money lending business as a quick way to generate revenue.  However, as the current economic downturn has demonstrated, this model for economic growth is clearly not a sustainable one.  With this comes the realization that the US economy, and by extension the American population, will have to Click here to continue reading »”Is This The End of Mass Consumption?”

With the ongoing uncertainties of when the global and regional economies will pull out of this deep recession, I think it’s important that all consumers understand what exactly led to this situation rather than simply relying on economic forecasters and politicians for their stance on the matter, which seems to change on an almost weekly basis.

To that end, I want to share this video created by Jonathan Jarvis called “The Crisis of Credit Visualized” as it does an excellent job of breaking down this complex issue and presenting it in a fashion that is easy for everyone to follow.  Thanks to Jarvis’ video, viewers will not only have a better foothold on what exactly caused the current financial meltdown, but they’ll also be able to better evaluate whether the measures our respective governments are putting into action will resolve this economic downturn, if not why new regulatory measures need to be implemented to ensure such a situation doesn’t arise again. Click here to continue reading »”A Guide to Understanding the Current Economic Crisis”