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Financial Titanic –who is watching for the icebergs?
If you have ever watched the Titanic, you will know that despite being in Iceberg waters, the lookouts failed to spot the iceberg quickly enough. And so it seems in today’s financial world, where we are sailing in uncharted waters with a great ship (Australia’s economy) but where there is a very real risk of a looming second wave financial Tsunami, far worst than the first. Its not me saying this but a thought provoking documentary.
Do yourselves a favour and tune into the ABC’s Four Corners on Monday night at 830pm. It is a story about the greates financial crisis we may ever see, the one that is on the way, in this program called “Overdose’. This is a warning about why we should sail very carefully in these waters and be on the look-out for danger, financial danger that has a very real risk of causing enormous damage. Is it just scaremongering or is it real?
Straight forward common sense tells you that borrowing beyond your limits places you at financial risk. The banks know it and you know it. That is why they are so diligent about placing limits and conditions on what you can borrow and payback. Maybe it is just me but to BORROW outrageous sums of money by acquiring more debt, to get out of what is fundamentally a debt crisis (the GFC) seems incredibly niave and pretty stupid.
At some point, you have to pay it back. And if you can’t you may need to become bankrupt. The writing is on the wall with Greece, Iceland, perhaps Spain and even Ireland. In our country we are accruing $100 million dollars PER DAY!!!! We have very low interest rates, but very high debt. At the last count was we owed $1.57 per every $1.00 we earn. While you may think that it is the Government debt that it is responsible,but it is not! It is the private debt borrowed primarily by the banks to fund our property and consumer appetites that has created much of this. Every one of us is affected by this and everyone one of us can take some responsibility to help sail us through these uncharted waters.
You wont hear the governments telling you not to spend because without spending you don't get economic growth, or in other words a recession. But you can still spend PROVIDING that you spend the right way. Learn the right way, not the way others would like you to spend, so they can profit from you.
So BECOME DEBT FREE by LIVING DEBT FREE is the best way you can help and to spread the word to everyone you know. It is a time to budget properly, categorise our spending correctly, not overspend and to be prepared.The economic and social consequences of us getting this wrong are something we all would want to avoid.
Get educated, watch the Four Corners program and start to Live a Debt Free lifestyle as quickly as you can.
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