Borrowing Against the Future

"Living off our equity," is a catch phrase that most middle class Americans believed in only a short time ago. The housing market was never going to bust.  Like most of us in our 40's, 50's and beyond we were somehow stepping into an unknown zone.  We were working hard, trying to do our best to secure that our children would have it easier than we did.  Educating our children insured that when they graduated from college, numerous employment opportunities would await them.

Many if not most borrowed against their equity to help pay for their children's college education.  Others borrowed money to upgrade their homes as when the time came for them to sell they would receive the monies back three fold.  Then Peter said to Paul "I am sorry, but I have no more to give."

While middle class Americans were listening to "the experts" we forgot to listen to ourselves and had not lived through what our parents and grandparents had lived through when times were tough.  We had forgotten the phrases "A penny earned is a penny saved,"and "Save for a rainy day."

After all when you opened your mailbox there was an abundance of banks only more than willing to let you open up credit card accounts.  They added fire to the fuel as they did not care what you were earning or how much debt you were in already.  Of course, they were not solely to blame, as afterall we knew what our limitations were.

Leasing your car became the norm as it ensured every three to four years you would have a brand new car.  Elaborate vacations that only the rich only used to enjoy were not available to us.  Designer kitchens were what middle class Americans decided they needed also.  McMansions were being built all around us.

Gone were the days like I remembered when my children were young.  Only 12 years ago they were eleven, eight and three.  I, like other moms, was somehow able to stay home.  They were entertained by having friends over and playing with the neighbor kids.  Myself and other moms did not have cell phones, brand new cars, or designer kitchens.  If we needed to know where our children were we only needed to just go outside.  Our cars drove our children to and from play dates and after school activities.  Our kitchens may have been outdated but we made home cooked meals for our children and other children that happened to be at our homes at the time.

If only we had not listened to the outside entities that were bombarding us through television, the radio and other medias.  If only we had not fallen into the so many systems that were established by so called experts.  The health care industry, the educational system, the "grass is always greener on the other side." phenomen. 

We live in a time in our history where so many are depressed, in financial distress, and where for the first time our children will not do better than us.  You only have to look to your own neighborhoods to see this is a true fact.  There are no more mom and pop stores, local towns have numerous empty storefronts, foreclosures and short sales abound in your areas. 

The middle class is shrinking at an alarming rate.  We are the bread and butter of America.  Without us we can no longer pay for the numerous social programs that have been implemented.  The upper class will survive for a short time, but again, without the middle class eventually their numbers will shrink.

Peter has stopped the volcano that has erupted.  It will take a long time to stop the lava.  Paul in the meantime will do his best to get by with what is left.

An American economy that no longer has employment available for all that are willing and able to work.  Social programs that have for too long been taken advantage of by those who really did not need them will feel the effects for those who truly needed them.  The health care, education, govenment and banking systems are broken.

Peter has no more to give and Paul has no where else to go.  Hold onto what you have and try to rebuild the foundations of family and the American Dream.  Do not look to what others have as you can only do what you can little by little to once again bring back the middle class.