As I write this, the entire financial, investing and banking industries are in the middle of what will be known as the Panic of 2008. Due to decades of policies where the government encouraged lenders to give the poor more than the poor can pay back, the entire industry is at risk for collapse. The sobering scenario should be a lesson for anyone seriously interested in preserving their value, and increasing their income.
The number one expense for Americans, in general, isn’t housing, food, transportation or entertainment – it’s taxes. The number one reason stocks collapsed isn’t “greedy” lenders, but the laws that were passed over the last three decades that encouraged financial institutions to ignore the long-term consequences of short-term gain. In a sentence, the government forced big loan companies to give loans to people who couldn’t afford them.
This article isn’t specifically about politics or economics; it’s about financial planning. However, regardless of your political affiliations, the fact that political action impacts the economy and, hence, your finances, is simply unavoidable. There’s no way out of it.
Government policies are the most important thing to consider in your financial planning. Financial planning that doesn’t factor in new restrictive laws, future taxes, government-induced inflation and other political actions is naive at best, suicidal at worst.
This is just the first step. Realizing that the government has such a grip on your wallet enables you to accept the next fact: An Economic Depression is Looming. I’m in the middle of writing an article describing the real crises (it’s not what your watching on TV) so make sure to sign up below — it’s vital.