What we're seeing now is the breakdown and flushing of the debts and malinvestments of the boom period.  It's time for more savings.  Our ancestors built this nation and you can bet they didn't do it on debt, margin, 0% down mortgages and HELOCs.  Perhaps this will bring an end to the idiotic Keynesian debt-based system and usher in a return to a commodity-based currency.  But... I doubt it.  Thanks for the article!

So...the responsible people are now at fault, are we?

Those who live within our means, sacrifice to pay off our homes and cars (and are keeping them now that we own them), spending wisely (which does just translate to spending less; it also means spending locally and carefully), bartering, trading, couponing and comparing? If we are at "fault:" for anything, it's about finding better ways to spend and save, as opposed to mindless "I-want-it-NOW-and-I'll-pay-for-it-whenever" consumerism.

I am tired of the whining from some folks who put themselves at the bitter end of unpayable debt for the sake of their collection of stuff, then beg for help instead of growing up and owning up. Personally, I've been "stupid broke" in my past, took responsibility got help (mostly from these boards and blogs!) and dug out.

People have said, do they teach this spending habits in schools.  Are your serious!  Kids are taught to budget time, realistic math/accounting is taught from an early age and responsibility is something teachers tirelessly to teach.  The problem is our mass media says BUY BUY BUY.  And the students parents stop teaching those principles, even sometimes do and promote the opposite.  Maybe if society invested more into our struggling school we would see our society grow and get better.  I have a masters degree and make only 34,000 a year and thats not even counting the hundreds I spend on my students a year. I'm not complaining I'm just pointing our the fact that teachers are underpaid. Step up society!  Fix our economy by fixing our schools.

[quote]

Our refusal to buy every little thing we want or eat out for every meal is causing a tidal wave throughout the business world, hurting retailers, suppliers and manufacturers, who are then forced to lay people off.

[endquote]

...yes forced to lay people off so greedy corporate leaders can still get their fat paychecks. Why they get a pay increase after performing layoffs is something I don't get.

So they want me to stop being frugal? Fine. Here's the deal corporate leaders. Given the economic situation we're in, instead of laying everyone off: YOU accept a pay cut (for once), NO private jets using money given to you to bail you out of this mess, NO golden parachutes after screwing up your job. And NO justifications for violating the prior 3 requests.

THEN we'll talk. I'm so done with this mess.

Thanks for the mention! And the comments are great -- really interesting, with some creative takes on the whole fiasco. I've enjoyed reading them. --vh

I almost lost my wife to an accident a few years back.  We received an insurance settlement - nothing large - less than 150K.  We didn't go out and by a new car or move to a more expensive house.  We paid off the home that we live in, which is small but we like it.

My reason for sharing this is that many people thought that we were crazy for not getting "bigger, newer things".  Well now we have no debt, no mortgage, no car payments, and no credit cards.  

We can weather quite an economic storm from being frugal and playing the game our way!

It was Bushes' congress that dropped the reserve requirements for Freddie Mac and Fannie Mae. It is so easy to point fingers, but not actually true. With farm subsidies, sugar subsidies, financial industry subsidies, auto industry subsidies and oil subsidies how can you say a NEW president will be big brother? Socialism is fine as long as it helps big business? Not fine if it helps the average American? Wow, I bet big oil loves you!!

No way.  I think frugal people are the ones that smooth out the economy.  THat is because our spending pattern is not tied to the economy.  Frugal people do not cut back nearly as much as the spendthrifts.  They are the ones that get over their heads and cause crashes, because they pay absolutely no attention to their means.

They spend because it makes them feel temporarily happy.  Then that moment fleats and they are back to their crappy mood.  On and on it goes, until, they realize that their credit is maxed out.

Sorry, but frugal people are the ones that suport the economy.  They are the ones that truly realize that money does not buy happiness.  Friends and family can.

This is a country of big wasters and baby criers,yes we should have nice things,but

spending more than you earn is what made this mess. Materialistic is a word that many people should look up in case they do not know what it means,I have seen people buy very expensive and not importante things and come the end of the month

there is no money to pay the bills. The Gov. is doing the same thing with the bail out

money,I would like to teach people how to live confortably and have money set aside

for EMERGENCIES.

I live on SS, so that tells you I'm frugal.    Yes, I'm tight,  but I don't have debt for the first time in my adult lifetime.  I don't have bad habits except for eating fast foods of the wrong kind and at home.  If this is viewed as 'radical', and I suppose it is, then so be it.  But with a 401K down 90%, what else can an adult do? In my books, the few jobs there are should go to the prepared workers, not the stretched retirees or transient visitors.  Yes, retailer, I'm sorry I can't help you this year, but I just might be out on the street next year, so I'm saving for those unexpected contingencies, not for a granite kitichen, Prague fling, 60 inch tv or even a newer used regular car. Any extras I'm hoarding go to insurance and medicines, not luxuries. My coffee's instant, my gowns are tee shirts, my events are Internet, my sprees ink cartridges.