2nd: The Interest Rate Freeze is indeed a short-term fix (if you can even call it that…I’ll save the rant and the details). It appears the government is looking to forestall our crisis/correction…essentially spread it out over time so as the lessen it’s effects.

Lastly, you raise a very valid point…one that I believe is overlooked to often. Overall, we’re instinctively inclined to want to spend more. In fact, we spend money easier than we earn it! We have a desire to want more…that luxury car…the fancy clothes, etc. Our spending is only constrained by our income! Otherwise, we’d keep spending more and more.

So maybe it’s best that our market correction is taking it’s course the way it is in bringing forward tighter lending restrictions. It’s not that we’re saying “oh well, too bad.” But the fact is, statistics evidence that the major contributor to foreclosures is a Curtailment of Income as opposed to the ARM resets we’re seeing. Our correction is going to bring to light just how much of the American population has been living beyond their means.

And enlightenment that should say hey, think before you spend…exercise frugal spending habits…and think outside the box (if you can get it cheaper somewhere else, then do so. Don’t just buy it because you want it right now!)

Anyway, that’s me sharing my thoughts! Agree/disagree?

Nice to meet ya! I’ll read you later!

Here’s a typical example: I can just barely ‘afford’ that excalade at $500 a month. I’ll have to stretch, but I can do it. Maybe it means I’ll have to eat out 3 less times per month, but its worth it right? Its totally sweeter than the Jones’s Beamer.

Of course what I neglected to consider here is that the total cost of that excalade, depending on where I live, is probably more like $1000 a month, after taking into consideration gas, maintenance, insurance etc.

Then add in payments on the 52 inch plasma (only $92 a month!), home maintenance, a clogged sewer pipe repair, tax bills, a wii, netflix and gamefly, the hdtv cable package, 4 mobiles on the family plan with unlimited texting (even though junior is in 5th grade, all the other kids have them), this, that, and the other thing, and you get into a situation where all those ‘affordable payments’ are now unaffordable.

Oh, and don’t forget, Christmas is coming…

NCN, your article is spot on, as usual. Americans are going to have to learn how to make do with less in the coming years, and the really scary thing to me is I don’t think we know how to do that.