Saturday, April 25, 2009

A Lethal Combination?

Glenn Beck, who predicted the banking collapse and recession before anyone else in the media, is now warning us about the impending crash of commercial real estate and another issue related to credit card debt. He is urging his listeners to be frugal. He is worried that "since we don't produce anything anymore," the president will try to get credit card companies to lower their interest rates, so we'll be tempted to use more credit. Consumer spending now accounts for 70% of our Gross National Product. But Glenn sees this, plus the impending disaster in commercial real estate to be a lethal combination that might cause the next banking crisis.

Liam Denning reports in the April 22 WSJ that the good news is that Americans saved $337 billion in the fourth quarter, but the bad news is that household net worth fell $11.2 trillion last year.

2 comments:

Terri Wagner said...

Glenn and I belong to the same church which has recommended for years that people get out of debt, put money into savings, become as self reliant as possible and store up against bad times whether on a personal level or much bigger. I hope everyone is listening as intently as I am to Glenn.

QP said...

Absolutely What Terri Said™.