In this week’s video address President Obama spells out some of the economic indicators that show light at the end of the tunnel. Even under the Bush administration, by all accounts, our country was on the verge of a financial collapse. Now folks like Tim Geithner, Larry Summers and Alan Greenspan all say we’ve moved away from the edge of the cliff.
But I want to highlight a comment that Obama only alludes to without getting overly explicit. The fact is folks, that the good old days were never that good. Our “prosperity” was built on a pile of debt, both nationally and individually. Lots of consumers buying anything their heart desired confused charging it with paying for it. Thus even before the economic crisis of last September, much of our wealth was just an illusion.
This complicates the job Obama has to do. We need not just a recovery but a change in how we manage our money. Wall Street must never again be allowed to play Russian roulette with our retirement accounts and we as individuals need to start relying more on cash than credit.
And now, the President of the United States of America: