Sushi Money

“Out with the old, in with the new” as the saying goes.  Timely words for welcoming a new year that will hopefully be a far cry from last year, at least financially speaking.    For many of us the new year also means a new commitment to getting rid of debt and increasing savings.  In short, through circumstance or necessity, many of our priorities have changed.  

Jim Citrin looks at Getting Back to Basics in 2009, describing how changing priorities have affected business perspectives:

“The era of unchecked consumerism and financial excess had the insidious effect of devaluing everything. Why save money when you could borrow to get whatever you wanted? Why hang on to clothes and appliances when you could just go to the store and buy new ones? Why make structural improvements to your business operations or deepen customer relationships when you could push more stuff to get the growth that Wall Street demanded?”

“In one fell swoop, these attitudes have ground to a halt. They’ve been replaced by millions of healthier conversations in conference rooms and around kitchen tables about how to save, conserve, and prioritize.”

The article looks for a silver lining, examining how we can reconnect and make the best of the difficult times we live in.  I appreciate his views because it makes the simple point that we have a choice with how to respond to the current economic environment.  Sit around and wring our hands?  No. We need to get up and do something about our situation, and work to improve our lives and fortunes.

Admittedly the really tough part of the economic challenge we face is how far it has reached into people’s lives.  Between housing, the stock market and the credit crunch, the financial challenges have touched every level of the socio-economic spectrum.   For those who have lived too long on debt and excessive borrowing, the money faucet has been turned off.  Now they’re struggling to save, get by and get rid of that debt.  Others are struggling with layoffs and trying to find a job.  And even for those who saved and invested diligently through the years, the stock market’s downward spiral has demoralized investors into wondering why they ever invested in the first place.

A lot of frugal and industrious folks today are wondering if they should have just spent more of their money when they had it, instead of scrimping and saving through the years only to watch it disappear in a few months.

Most of all it’s just hard to feel confident about our choices right now.  And we’re shocked when reading about financial scandals and corruption.  It’s no surprise that many people have moved their assets to cash in CDs and savings accounts, deciding that something is better than nothing.   Nothing wrong with that, especially if you need the money in 3-5 years, or you are already retired and may need that money for healthcare or living expenses.   But the rate of return on those accounts is really low, and most planners will still target a growth or dividend component in the overall allocation mix if possible. 

Dividends are also king right now for investors, and there’s nothing like getting paid to hold a good company in stock.  Fixed income investments also may offer some of the best opportunities in the next few years.  Cash-wise I’m at least putting some money into a good quality high-yield savings account such as with ING, and money market accounts such as Vanguard Prime.  If you want treasuries (who doesn’t!?), Vanguard also has several treasury mutual funds.

And I’m certainly still investing in mutual funds and selective stocks, taking advantage of low prices and increasing savings and investments where I can afford it.  Is that a gamble?  Not for me, since I don’t plan to need the money for 10+ years.  If you feel like it’s gambling, then that should tell you something about your risk tolerance, and you should look for a more conservative asset mix. 

But if you’ve got decades until retirement, there’s no better time than right now to accumulate investment shares.  As long as your financial life is in order of course.  I call it my Big Three, and they remain the central focus of our financial lives:  Cut Spending, Pay down Debt, and Increase Savings.  After the first two are under control, then I think about investing.

If you’re feeling bad about your mutual fund losses, most of us can be glad we didn’t join the Dubious 60% Club, and that’s not 60% up…  Bill Miller was a high-flyer for about 15 years as a leading mutual fund manager, but for the past few years- well mostly last year- he has crashed and burned.   It just goes to show that anyone can make poor choices and lose money in the market.  Does that mean he’s sulking in some corner office, licking his wounds?  Absolutely not.  He’s still in their fighting and even managed to beat the S&P 500 for December 2008.   

As we ring in the new year, there’s a host of excellent pracitical advice out there.  Here’s a rundown on some of my favorites:

• The Wall Street Journal offers an eclectic mix of insight for How to Fix Your Life in 2009.  “Exuberance and excess have made way for prudence and pragmatism. Frugality is, once again, a virtue. To help you settle into this strange new world, our reporters have dug deep into their beats…”

• SmartMoney.com shows us 7 Ways to Save in 2009.   “Reducing monthly expenses and saving more money is the must-make resolution for 2009.”

• Kiplinger.com offers a classic article from a few years go reviewing 8 Keys to Financial Security. “Pay yourself first. Protect your loved ones. Borrow sparingly. And don’t go for the home run…”  What a great, timeless article.

• Laura Rowley takes an heady look at the psychology of Understanding Money Behavior in a Financial Crisis.  “One of the keys to surviving the economic crisis, at least from a psychological perspective, is recognizing what you can and can’t control. And not doing destructive things while you’re powerless.”

I wish you a healthy and prosperous new year for 2009.  Sushi Money is two years old this month, and it’s been a grand experiment in the personal finance blogging world.  I don’t how long I’ll continue to write here, and I may look for a different financial niche.  But its been a lot of fun.  One of my goals includes are greater focus on philanthropy.  I’m in little position personally to make significant philantrophic gifts, but I am very thankful for the time and resources I do have available. Maybe there’s some kind of venture in the making.  

In times like these it’s important not to forget those who are struggling.  The economy will gain traction slowly, but there will be many who are left behind.  As we strengthen our own financial lives, it seems a good time to try and help a few others along the way.

So much going on lately it’s hard to keep up with.   Staying too busy and not looking at the market gyrations each day.  It’s almost like a financial soap opera at times with the spin on the financial crisis.  Yesterday some of the headlines read that consumer prices fell by over 1.7%, which is nearly the greatest amount since 1932.  Yet core inflation was unchanged.  There’s always a story to be found somewhere in the financial news.

So now we’ll be reading about deflation as a grave concern by the Fed and others.  Maybe it is.  But energy prices have fallen so far, so fast that it influences the greater part of the drop in consumer price data.  Based on the past years CPI data, Social Security recipients are getting one of the largest Cola (cost-of-living-allowance) increases since the early 1980’s- 5.8%.  But don’t spend it all at once! Over the last couple of months the drop in consumer prices might indicate a meager Cola in 2010.  So it’s like getting next year’s increase now. 

The bigger news yesterday was the Fed’s lowering of the Fed Funds Rate to nearly zero percent.  That should ultimately influence some interest rate direction, but it’s not all good news.  It might ultimately influence mortgage rates, but it also means lower rates on savings accounts and CD’s. The Fed is really trying to do all it can to stimulate the economy and the business cycle.   Business growth produces jobs, and we know the employment news hasn’t been good lately.

Yet even with interest rates falling, this financial crisis is unlike others in the past.  Instead of falling credit card rates for example, many consumers are receiving notices of increases to their credit card rates, as well as reductions of their credit limits available.  Financial institutions such as Citigroup are citing a “difficult market environment” as their justification for raising rates.  This is a huge problem, especially on the eve of Congress’ new laws regarding consumer protections with credit cards.   

My opinion?  That’s why these companies are raising rates… because they’re not going to be able to after Congress tackles the issue.  Federal regulators are poised to make huge, sweeping changes to the credit card industry- and much strong consumer protections.  So the credit card companies are changing the game to their own benefit now while they can, and it’s not helping consumers.  

Even one of the most customer-friendly financial institutions in the country- USAA Federal Savings Bank- has notified customers that it’s raising rates 2% or more above current rates as a minimum!  You don’t have any choice with this other than to “opt out” after which the card/account will be closed.  Personally I think it’s a disgrace- but these companies are in business to make money, and if they can’t make profit at a certain level, they will raise rates to do so.  As it stands now, they’re concerned about losing money in light of low Prime and variable card interest rates. 

One would think these same companies shouldn’t be able to do this, especially if they’re receiving federal bailout money.  Maybe that’s an indicator of just how bad things have been.

So paying down (or staying out of) debt is more important than ever.  And don’t look for those zero-percent balance transfers to help out either.  They’ve disappeared like a lot of other things, and we just won’t be able to play the ‘ole credit card shell game as much anymore. 

Otherwise everyone’s busy!   It seems like we’re making progress from a macro perspective with the financial challenges we face.  The Fed’s doing all it can to move money around the economy, and maybe the banks will start to lend more in the months ahead.  I’m not a market prognositicator, but I still believe valuations are incredible and offer some of the best investment opportunities we’ll see in our lifetimes.   I’m not chasing stocks or the next big thing, but just trying to stay patient, and focus on long term goals.    Have a great holiday week.

It’s been a busy couple of weeks and a nice break over the weekend.  Amazingly it’s already December… I’m all for supporting the economy, but I didn’t join the shopping melee last Friday.  I find myself holding back and shopping a little more carefully these days.  In fact I’ll shop more on the internet than in retail stores, looking for bargains here and there.   Today is supposed to be Cyber Monday for shopping online, but it looks more like Red Monday with the stock market after a key manufacturing index fell to a 26 year low.

Beyond the economic news there’s incredible unrest around the world these days, and now travelers have much to be concerned about.  If the events in India tell us anything, it’s that we must keep up the fight for freedom and against terrorism.  How can we live and grow as free nations around the world if we allow other countries such as Pakistan and Somalia to harbor or export such people?  This is not a simple fix, but will require generational change to overcome.  Hopefully we’ll see it happen in our lifetime.

In Thailand there are hundreds of thousands of travelers stranded at airports around the country trying to get home because of protesting within the nation.  And this at nearly the peak of the tourist season.   Civil unrest in Thailand and other countries is going to impact tourism in a huge way, and deepen the economic crisis for many people.  But the Thai government recognizes the impact and is trying to support tourists through lodging and food allowances while the protests continue.

“Tourism Minister Weerasak said the government will set aside as much as 400 million baht ($11 million) from its budget to pay for hotels and food for stranded tourists. Tourism generates about 1 trillion baht in revenue each year, he said.”

œThe government will pay 2,000 baht per person per day for hotels and food, Weerasak said. œWe think we need to spend this to take good care of the tourists. We will try our best to make them feel taken care of.

When I read such news I must say I am thankful in so many ways.  Doesn’t quite give one the travel bug does it?!  And it puts the economic challenges we face in a better perspective.  We’ve got work to do certainly, but we’ve got a strong foundation to build upon and people willing to work.  Soon we’ll have a new President and administration, as well as a host of minions running around Washington D.C. trying to get things going in a new direction.  Between all the new economic experts and a January stimulus bill, the news is bound to get better eventually.  What happens between now and then is a good question!

With the holidays upon us it’s time to decorate and focus more on home and family.  We won’t be doing much traveling, except perhaps closer to home.  Gas prices are helping the budget immensely, and that’s one more reason to be thankful.  Have a great week.

How does a well educated middle-aged registered nurse end up losing $400,000 to scam artists?  For the life of me I can hardly understand how this is possible, especially because it’s such a well known internet scam and involves the red-flag word “Nigeria”.   This otherwise intelligent (maybe not) woman emptied her husband’s retirement account, and took out loans on their house and car all to continue sending money to thieves half way across the world.

“It turned out to be a lot of money up front, but it started with just $100.  The scammers ran Spears through the whole program. They said President Bush and FBI Director “Robert Muller” (their spelling) were in on the deal and needed her help.“

Ahem… well, you see Presidents and FBI Directors don’t ask regular people for help.  Unless they’re behind in the polls for re-election perhaps… But important people have, you know- other people to do that kind of stuff for them?

“They sent official-looking documents and certificates from the Bank of Nigeria and even from the United Nations. Her payment was “guaranteed.”  Then the amount she would get jumped up to $26.6 million “ if she would just send $8,300. Spears sent the money.”

“More promises and teases of multi-millions followed, with each one dependent on her sending yet more money. Most of the missives were rife with misspellings.”

Okay, I guess if someone’s going to give me a lot of money I won’t hold their spelling problems against them. 

“When Spears began to doubt the scam, she got letters from the President of Nigeria, FBI Director Mueller, and President Bush. Terrorists could get the money if she did not help, Bush™s letter said. Spears continued to send funds. All the letters were fake, of course.”

Oh boy.  Even worse, she was told it was a scam by relatives, friends and other professionals, and was advised to stop- and still she kept sending money.  No offense Ma’am, but I hope your nursing judgement is better than your everyday, ah, money handling judgement.  

This type of “Nigerian” scam is a called “advance-fee fraud” and it has been around for a long time.  Even worse, it’s reaching an epidemic level and people keep falling for it!   What’s the best way to avoid it?  Just don’t reply to any email or letter than has anything do with Nigeria for one…  more importantly think about these words from the Federal Trade Commission:

If You Receive an Offer

• If you’re tempted to respond to an offer, the FTC suggests you stop and ask yourself two important questions: Why would a perfect stranger pick you ” also a perfect stranger ” to share a fortune with, and why would you share your personal or business information, including your bank account numbers or your company letterhead, with someone you don’t know?
• And the U.S. Department of State cautions against traveling to the destination mentioned in the letters. According to State Department reports, people who have responded to these “advance-fee” solicitations have been beaten, subjected to threats and extortion, and in some cases, murdered.
• If you receive an offer via email from someone claiming to need your help getting money out of Nigeria ” or any other country, for that matter ” forward it to the FTC at spam@uce.gov.
• If you have lost money to one of these schemes, call your local Secret Service field office. Local field offices are listed in the Blue Pages of your telephone directory.(I never knew that!?).

Admittedly some people get involved in a scam and it becomes an obsession to fix it, get their money back or it becomes some type of self-denial.  That’s such a shame, and it must border on psychological issues sometimes.  But apparently the woman in the article above would like other people to know her story so maybe it can prevent someone else from falling into this trap.  Good for you lady, and thanks for sharing it.  It’s too bad you couldn’t have done so earlier without losing so much money.   

It also upsets me that our government, and the governments of Nigeria or other countries cannot do something to prevent or remedy this type of situation.   It’s bad enough when we’ve lost 36% over the course of a year in the markets- but to just give our life savings away to scam artists?   Don’t fall for it!

For More Information

More information about Nigerian Advance-Fee Loan scams is available from the U.S. Secret Service (www.secretservice.gov/alert419.shtml).

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad. 

That’s pantry fellas, okay?  You know, that closet or cupboard where you keep your food and canned goods?  I looked around ours recently and discovered we’ve got a lot more food on hand than we realized.  Maybe not fresh foods like milk and eggs, but if push came to shove we could probably go a month without a major shopping trip.  That’s not even counting what’s in the freezer.   With thoughts like these it’s no wonder we’re reading about consumer spending taking a huge dive last month:

“The Commerce Department reported Friday that retail sales fell by 2.8 percent last month, the biggest drop on record, surpassing the old mark of a 2.65 percent plunge in November 2001 that occurred after the terrorist attacks. The October sales decline was led by a huge fall in auto purchases, but sales of all types of products suffered as consumers, worried about their jobs and the market turbulence, cut back sharply on spending.”

“The dismal report on retail sales was worse than the 2 percent decline that analysts expected. It marked the fourth straight decrease, the longest stretch of weakness on record. Retailers are braced for what could be the worst holiday shopping season in decades with economists forecasting a recession that could turn out to be the steepest since the 1981-82 downturn.”

“A survey of the nation’s big chain retail stores found that retailers suffered through the weakest October in at least 39 years even though they tried to gin up more sales by a frenzied round of price cutting.”

Of course there’s a bright side to a retail downturn…  discounts and sales everywhere.   Now retail doesn’t usually include grocery stores, but I know folks are cutting back there too.  The stores are quieter and emptier.  Except for Wal-Mart.  I made the mistake of going to Wal-Mart on a Friday a week ago- holy cow!

Having grown up through the ‘81-’82 downturn, I’m not sure I learned anything of significance either, especially because I was young and single, and didn’t have a family or home to support.  But we scrambled with multiple jobs and did what we had to do… worked, saved and pinched pennies.  I do remember running out of gas a few times… that was embarassing, but more a reflection of my lack of foresight than anything else.   You know what else was lack of foresight?  Not investing on a disciplined basis each year at the time- I probably gave up a decade or more of investment returns over the length of the 1980’s bull market.   But that’s another story.

As I ponder the current state of affairs it strikes me that most of us have a lot more resources at hand than we may realize.  And that’s also because most of us plan ahead a little bit, and try to stay prepared for whatever might come.  If I look in the pantry, the garage and a few other places, I realize we have a lot of stuff.  Some of it is even useful.  If things get really tough, we’ll be fine for a while.  We’ve already cut back, and we have room to cut back more if we need to.  Admittedly lots of other folks may not, and we’ll need to help them where we can. 

All across America starting this weekend the Boy Scouts and Cub Scouts have their annual food drive to gather donations and help people.  So many of the local food pantry and shelters really need the donations.  Looking at our household pantry I know we have a lot of cans we can give to help another family with Thanskgiving this month.

But if you’ve read Sushi Money at all before, you know I’m not one who believes we’re falling into another Great Depression.  Heck they haven’t even called it a recession formally yet.  But when they do (oh, they most assuredly will!), the recession will probably have started around the middle of 2008. 

We don’t know when this recession will end.  We don’t know how deep it will be, or what will help trigger the turnaround.  But to get the nation moving and growing again means we’ve got to foster business and public works.  And James Stewart’s approach to How Obama Can Fix the Economy makes as much sense as anything I’ve heard from Congress or the Treasury Secretary.  The new President will have a full plate, and a lot of motivation for changing the economic course we’re on right now.   I don’t envy his job, but is there a better time to be a new President than with the economy on the ropes?  Looks like opportunity to me.  

Today is a day of remembrance and thanks for the Veterans who have served the nation in the armed forces. So many of us have family and friends that have served, and are still serving today.  We are better for their service, and sacrifice. 

If it’s not apparent to many people by now, the frugal living style is becoming the “in thing” these days.  No surprise considering the challenges Americans face with a tigtening economy and job market.   While consumers have cut back on spending more than any time in the last 28 years, the Fed has lowered interest rates to levels not seen since the days of Eisenhower.  It’s no wonder we’re spending like we lived in the days of Eisenhower over fifty years ago.

Of course the government is doing all it can to stimulate the economy, but consumers have awakened to the reality that money only goes so far.  And taking on more debt to support lifestyle needs is just not a good idea for long term financial security. 

But what is surprising is that being “frugal” is becoming fashionable throughout all levels of the socio-economic spectrum. Even the more affluent families are now looking for ways to cut back, and busy executives are wearing bargain shirts.  It just makes sense.  Why does “dressing for success” have to mean $1200 suits and $80 shirts? 

I believe we’ve entered a new period of practicality and frugal living.  Even if it’s simply a response to challenging financial times, people are becoming aware that spending money they don’t have just digs a deeper hole of indebtedness.  Living a simpler lifestyle is healthier, more stress-free and saves a lot of money over time.

So will families and children growing up these days have a new perspective on frugality and financial awareness?  Is this a new paradigm that has changed how society may interact with money?  Possibly, but you’ve got to wonder if some people are simply like that all the time anyway, or if it’s just due to the financial crisis.  A good comparison is the Nature versus Nurture debate, examined by the Wall Street Journal in The Making of a Miser.

“…people who lived through the Great Depression were often thrifty their entire lives. Since the 1930s, each successive generation has gotten to be more free-spending.”

“The current financial crisis could change that. “Right now, there are probably a lot of children who are going to be tightwads,” says Mr. Rick.”

“But our childhood isn’t the only factor. George Loewenstein, a professor of economics and psychology at Carnegie Mellon University, says people have innate tendencies. “It’s almost like people are born tightwads or cheapskates,” says Dr. Loewenstein…”

I’m not sure about being born to be thrifty.  Personally I think it has more to do with our experience, and the nurture aspect of childhood development is very important.  Yet being a tightwad is far different from simply being frugal.  And being a cheapskate, or someone who stresses out about every penny may not be all it’s cracked up to be:

“…According to Messrs. Rick and Loewenstein, being a tightwad isn’t the happiest state of being. Many cheapskates experience something akin to physical pain when they spend, and are constantly anxious about money.”

“Spendthrifts aren’t necessarily any happier. Their free-spending often causes stress in their lives and marriages. Indeed, Messrs. Rick and Loewenstein say the happiest people are frugal, which they define as people who are able to spend without suffering but take pleasure in saving.”

But what about the little things we love to buy, or gadgets like cell phones?  Are we thinking twice about those purchases as well?

One of the more expensive items I purchased this year is something most of us don’t need, but we really like.  A GPS navigation gadget, or personal navigation device (PND).   I’ve been waiting to buy one of these for a few years, and finally justified it by taking a two-week trip this summer (with sky-high gas prices to boot!).   Taking the trip was not a frugal decision by a long shot.  But it was a chance to spend time with my son, and something we will long remember.

To help with the trip I found a Garmin Nuvi 770 at a great price on Amazon, and had to have it.  And how did it perform?  Flawlessly.  In fact, the trip would not have been the same without it, and I’ll never be without it again.  This thing took us places I couldn’t have imagined, and kept us safe and sound and always aware of our location.  We did a round-robin trip in the midwest, through Michigan and the Upper Peninsula, and back down through Wisconsin, circling Lake Michigan.   Not only did the Garmin take help us find dozens of “points of interest” (POI’s) that we might otherwise not have seen, but it also found gas, shopping and dining facilities in a heartbeat. 

Crossing the Mackinac Bridge into Michigan’s Upper Peninsula

You can even see Mackinac Island in the picture’s background to the right over the water, and also on the Garmin’s screen.   This thing was just awesome to use, and really simple.  Personally I view it as a safety or security issue now- we know where we are, and how to get where we want to go.  It’s peace of mind and a whole lot more.  I even added a custom POI database that listed campgrounds, parks and other recreation facilities.  The coolest part is while driving down the highway in late afternoon, I could look up campgrounds nearby and the Garmin finds several I never heard of or even knew existed.  So we end up camping at some terrific places, without a reservation, simply by using the Garmin to find them as we travel along.

So can a Garmin be considered a frugal purchase?  Probably not, but one could make a case for saving gas by not getting lost!  It probably comes out even though, because the Garmin shows you so many new things you never knew existed, that you like driving there too. 

But a couple of months later, do I still use the Garmin very much?  Not everyday, but whenever we visit the city, go to garage sales, need directions to some new place, etc., it’s very handy to have.   I suppose of you’re a sales rep or a realtor, you can’t live without it.   But in terms of frugality it’s not an easy argument to make.  This thing is a cool gadget that makes life and travel better…but most of us don’t need one. 

I would like to think I’m usually in the frugal category, or at least working a lot harder at joining the ranks of the future frugal. I think we have entered a new age of frugality, and many people will more carefully consider how and where they spend money and the lifestyle choices it brings. 

Personally I enjoy spending money, yet I relish saving money on things and finding a good buy.  In reality however, I also don’t hesitate when I think I need something, and I usually pay for quality when given a choice.  But I often wonder if frugality and the enjoyment of shopping can go together?  I think the answer is yes, but it depends on the lifestyle we choose, and how much that debt is part of our lives.  It’s much easier to whip out that credit card and charge something rather than pay cash.  When we use our own hard-earned cash, I think we’re a little more careful about what we buy.

All I know is I choose not to stress out about financial choices (or debt!), and the more I provide for a secure financial future, the better my life is.   And that’s what it’s all about.

In these last days before the election I find myself amazed at the emotions and tactics of the political candidates and their followers, on both sides of the aisle and at both the national and local level.  This surely is one of the most fascinating, if not important elections we have faced in decades. Today I’m stepping out of the financial discussion to share a few thoughts on the election.  This may frustrate or disappoint some of you, and it may please others.  Whether you agree or disagree, that’s fine.  I respect your views and the choice that’s right for you.  I’ll even try to put up a guest post with opposing views if someone sends it in.  But for today, here’s mine:

Who am I voting for?  McCain.  Why?  Primarily because I believe he has a better vision for the future of the nation, as well as a philosophy that strengthens rather than weakens the foundations of society over time. 

I’m voting for McCain not only in terms of my views on national security or economics, but more importantly in considering the basic elements of what one believes about freedom and democracy.   At the heart of these beliefs, for me, is an understanding that the individual in society is the strength of that same society. Whatever we do to help grow, foster, improve and assist that individual in realizing their potential and expanding their ability to contribute to society is essential both for them and the nation as a whole.  

One of the growing socio-economic buzzwords is the term human capital.  Human capital refers basically to the inherent skills and knowledge that an individual may possess in order to contribute to society and produce economic value both personally and for that society.   One of the hallmarks of America has been to establish a foundation of freedom that allows this tremendous drive by individuals to grow and succeed, personally and professionally, and to seek ”…life, liberty and the pursuit of happiness.”    I prefer to think of it the same way as Benjamin Franklin:

“All the constitution guarantees is the pursuit of happiness. You have to catch up with it by yourself.”              

The expansion of human capital through the economic fabric of our free American democracy has arguably fostered the greatest revolution of invention and creative genius in history.  Yet it isn’t perfect.  What society is?  Even with the current economic challenges we face, the grand experiment of American democracy has been an incredible success story that continues to foster industrial, technological and environmental change throughout the world.  More importantly it places people first, acknowledging both the value of human rights and the value of human life.  Something that far too often is forgotten about most of the world in which we live.

We owe that strength and genius not to the nation of America itself, but rather to its people.  And the only way we are going to continue fostering the strength of the American nation over time is to continue empowering people as individuals, and not as recipients of government programs and largesse that increasingly demands adherence and holds their future hostage. 

I read a message on one of the news sites today that was interesting.  I think it’s a creative story and not a real event, but it makes an interesting point:

“Today on my way to lunch I passed a homeless guy with a sign that read “Vote Obama, I need the money.” I laughed. Once in the restaurant my server had on a “Obama 08″ tie, again I laughed as he had given away his political preference- just imagine the coincidence. When the bill came I decided not to tip the server and explained to him that I was exploring the Obama redistribution of wealth concept. He stood there in disbelief while I told him that I was going to redistribute his tip to someone who I deemed more in need–the homeless guy outside….”

Maybe the waiter would actually smile, and say “Good idea!” if this were to happen.  Probably not however, because few of us like having our money taken from us and being told we must give it to others.  Choosing to do so is one thing.  Not having that choice is another.

I believe Obama’s vision of change and “economic justice” to be lacking in understanding for the basics of freedom and democracy, and that it devalues rather than empowers the individual in society over time.

And quite frankly I would rather politicians work to legislate for structural  economic foundations, with evolving regulatory approaches, that support free enterprise rather than redirecting the hard work and success of some to those that may do little to earn it.  I believe the dreams, creative vision and efforts of hard-working Americans actually lift up the nation over time, and that if we make taxes too burdensome, and focus on re-distributing the products of their success to those who do not earn it can only serve to undermine the fabric of the nation.

I do believe we must give and share with those who may not ever be able to achieve or survive on their own, or without help in so many areas.  But giving of your own volition is one thing.  Having your money taken and being told that you must do so is another.  Rather than government deciding who are the deserving among society to receive the wealth of others, we must foster a nation that lifts up the poorest and those who are struggling. 

We can teach, train, volunteer, and give of ourselves in so many ways, and government can help establish programs and structures to facilitate those goals.  But economic justice is far more than being “neighborly” by taxing the rich, and handing out money to the poor.  It’s a balance to be sure, but Obama’s views- and those of Pelosi, Reid, Frank, Dodd, etc., are balanced much too far to the left.

Essentially I think America needs McCain more right now than we need Obama. 

Yet from the polls, media blitz and just about every other indicator, it looks like Obama has some incredible force that may sweep him into the Presidency this election.  If so then perhaps I’m voting with the minority.  Maybe the nation needs a pyschological shift of energy or some zen-like aura of charismatic change that Obama seems to bring for so many people.   But I just don’t see it.  I would rather focus on McCain’s experience and practical approach to moving the nation forward, rather than some lofty, unscripted vision of change. 

In the car this morning I actually heard two religious hymns being sung with Obama’s name in them, holding him up even as “holy.”  I have to admit that was a little shocking to me, and I’m not even an ardent religious observer.  I have to wonder if in times of national challenge or crisis that people might be flocking to someone new, someone they want to believe in and that can “save” America?  Have many of our fellow Americans replaced their religious views with a secular perspective that is looking somewhere for hope, and are they now looking toward Obama to provide that level of dramatic change?  Maybe so.  Whoever wins the Presidency, I do think the country will be fine.  But it’s going to be a very interesting ride depending upon the direction we take.

What a difference a few months can make.  I paid $2.19 per gallon to fill up a tank of gasoline today.  Is that amazing or what?

Remember all those days of $3.79 or $4.20 per gallon gas where it was just crazy silly to be paying those prices?  Looks like global demand has dropped so much that oil is falling towards $50 dollars a barrel.  We may see gasoline under $2 bucks a gallon in some states before year-end.

Meanwhile OPEC is scrambling to cut production and keep prices high around the world.  Iran and Venezuela are screaming “Higher! Higher!” while the price of oil- and their ability to prop up their regimes- keeps falling.

Realistically, I wonder how long oil prices will remain this low?

Well the market certainly is fickle.  Down a hundred points then up a hundred.  No one really knows the direction right now except that uncertainty makes people nervous. Recession, credit crisis, investment fears, the election… Don’t get me started on the election.  Some experts see lots of downside remaining in the markets, and then maybe a huge bear market rally before the end of the year.   With time and effort, it looks like our vaunted leaders will get a handle on the challenges facing us.  Let’s hope it’s the right handle…

“All human situations have their inconveniences. We feel those of the present but neither see nor feel those of the future; and hence we often make troublesome changes without amendment, and frequently for the worse.”

                                                                     Benjamin Franklin

It’s enough to make most investors toss up their hands and move on to something a little more certain.  Like focusing on work, home and family.  We may not be able to do much about the direction of our investments, but we can certainly influence the direction of our lives.  And that, today, is enough for me. 

“Finish each day and be done with it. You have done what you could. Some blunders and absurdities no doubt crept in; forget them as soon as you can. Tomorrow is a new day; begin it well and serenely and with too high a spirit to be encumbered with your old nonsense.”

                                                                       Ralph Waldo Emerson