Cholestrol, Fat and the Economy
Did you know that your body needs Cholestrol and fat? I bet that all of the negative ‘news’ you hear doesn’t lead you to believe that you do, but you do. In fact some fats will keep your brain healthy, and some cholestrol actually helps your heart. Crazy, huh? [disclosure: this is not medical advice - seek a doctor and all that jazz]. Here’s the kicker: some debt in the economy, as a tool to help companies get started seems to be OK. Some debt for consumers seems to be helpful at times when major things need some attention. I don’t recommend debt, but small levels in specific locations are safer than others. The safe types of fat and cholestrol in appropriate quantities keep your body moving and grooving.
Here’s the deal: too much of the debt doesn’t keep things moving, it makes things stop up and causes strokes just like regular human body blockage. Adding more debt to the economy’s ‘breathing room’ by ‘unfreezing’ the credit opportunities is just like putting a stint into an artery but them immediately going out to guzzle down the largest fast food meal you can find.
Trent of the Simple Dollar posted on twitter that he had a person asking how they should tell their children that they’re losing their home. More credit doesn’t help this situation. If I lose my home due to foreclosure having access to more credit doesn’t fix the problem that I’m in over my head. The ability to infinitely borrow doesn’t help anyone. The ability to aggressively pay back the debt and get to a positive cash flow matters a lot.
If I cheat and have a nasty, super-duper grody dripping rack of ribs all by myself but then go run a mile and then eat another sloppy rack of ribs (which is wrong, because ribs do not have to be prepared like that) I’ve not fixed the problem either. If I got into debt, pay back most of it and then buy a bigger TV on it, but am not saving for retirement I’ve blown it. If I go into retirement with money saved, but still have stupid amounts of debt, I’ve blown it. Debt, much like a medical condition that needs attention, can’t be put off indefinitely.
So, watch your diet, watch your spending, take care of any debt or health issues, and don’t be fooled into thinking that we can quickly fix the economic situation with more debt. More debt doesn’t help like more cholestrol doesn’t help. Which is why I’m going to stop typing and go eat a carrot. The Vitamin A will help my eyes so that I can read more of the stuff coming in over the wire on this screen;)
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