Originally Posted by
300miles
You hit the nail on the head! Our economy is not supported by people saving their money! Over the decades it has been propped up from everyone spending as much as they can... and then even more by going into debt. Debt had been made very easy to obtain via credit cards, low interest rates, and mortgages that don't even require down payments. THIS is how our economy boomed. It's coming to a screeching halt people people are (rightfully) afraid to spend now.
The "right" thing to do is to live within our means, but unfortunately, that policy will not improve our economy for years, until the whole system is realigned to reality. It will be a painful switch. The more likely scenario is the govt will attempt to prop up the debt/credit house of cards again and hope we all forget anything happened.