Savings, NOT Credit, is the Lifeblood of a Healthy Economy President Obama

Earlier this week, President Obama made the statement that credit was the lifeblood of a healthy economy.  So the last two years of financial diaster hasn’t proved anything to you Mr. Obama?  While credit is a very important part of a healthy economy, it is not the lifeblood.  I would agree with this statement if we lived in a country where people lived within their means and were financially responsible with the money.  This is definitely not the case and President Obama needs to stop believing it is.  This is another reason I disagree with the distribution of wealth.

If you have been irresponsible with your money in the past, what is going to change that today?  Did all the individuals who defaulted on their mortgage loans and built up huge amounts of debt decide that now is the time to take a finance course?  Do you think ANY of these individuals know how to compound the annual percentage rate on their EIGHT credit cards?  If they did, they would not have eight credit cards!

If Americans was getting financially smarter, we would not continue to see credit card spending up.  We would not see a greater number of foreclosures.  We would not see savings remain at the lowest levels in history.  This is why SAVINGS is the lifeblood of a healthy economy.  Those who are financially intelligent and know how to manage money SAVE.  Those who are financially ignorant and have no clue how to manage money buy on CREDIT.  So President Obama, why would credit be the lifeblood of a healthy economy?  Oh, thats right, because we need to redistribute wealth to those who do not know how to manage it!

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