Monday, May 16, 2011

Working For a Living

You've got a job. Maybe you've got a family. You work hard and you make some money. You try to save a bit and you try to keep to your budget.

But expenses aren't as linear as your income. Emergencies crop up, opportunities present themselves, and even planned costs will vary through the year like your heating bill or gasoline costs. You've managed well so you take out a credit card. Maybe you've got more than one.

Because you've reliably made your payments, your credit limit reflects your excellent record. You've got a high credit limit. It tempts you to overspend and you succumb to the temptations. Now you've got your credit limit maxed out and you are at the point where your income barely allows you to make the minimum monthly payments. You've got no flexibility left for emergencies.

You know what the options are, don't you? You can work harder or take a second job to increase your income. Or, you can examine your expenses and make some tough decisions. Maybe the bass boat will have to go. Maybe you won't go on the Bahamas cruise this year. The new car might have to wait. Home cooking might be more common than dining out. Possibly no more HBO and pay-per-view but limit to basic cable. Start drinking eight-year-old blended Scotch instead of single-malts.

There is the other option of asking the bank to increase your credit limit, isn't there? If you are spending like a drunken sailor on shore leave in Olangapo and all of your credit cards are maxed, you know that isn't going to work. But, then you aren't the US government. The bank sets your limit not you.

Debt Ceiling Reached Geithner Flustered

What a concept, they are going to borrow from the pension funds to keep the party going!

Here's the funniest line in the whole piece:
Geithner, who has already suspended a program that helps state and local government manage their finances, will begin to borrow from retirement funds for federal workers. The measure won’t have an impact on retirees because the Treasury is legally required to reimburse the program.

That's a prize winner! "A program that helps state and local government manage their finances..."!!! The pusher is running a rehab!

The paragraph even includes the runner up for Whip of the Week: "won't have an impact because the Treasury is legally required to reimburse the program."  Where does the Treasury, which has reached the debt ceiling and is tapping the pensions get the money to reimburse the program?

They probably don't even see the contradictions in that.


The Donald said...

Dewar's instead of Glenmorangie?

A plague of all cowards - art thou mad? 'Tis blasphemy, I say!

Of course, when I find myself unburdened by excess coin, I revert to water and homebrewed iced tea. I won't hold my breath waiting for government to do likewise.

Ed Rasimus said...

Donald, I didn't say my credit cards were maxed! Glenmorangie or MacCallan 12 are still on the menu.

immagikman said...

I believe that incompetence has reached all corners of our ruling class, now there is nothing left but for the emperor to fiddle while Rome burns. It is really hard to have a positive outlook on the future. I see the day when ol Timmy starts tapping our personal savings to pay his bills.

The Donald said...

Good man, with good taste!