Money In Motion

The other night, I was both bored and restless, and feeling a bit burned out. So I decided to take a long walk with my camera and see if I could find interesting things and/or people to photograph.

I was one block away from the Federal Reserve Bank of Philadelphia when I came across a group of homeless folks sitting on the sidewalk. One guy was very busy, working very hard scraping dirt from coins and other metallic objects. I stopped and asked him what he was doing. He introduced himself as Danny (pic to the left), and told me that he was recently homeless. He said that he made an arrangements with a friend of his who owns a local laundromat. Danny explained that his friend lets him stop by the laundromat every once in a while and collect whatever he can from the numerous washing machine drains, and Danny can keep whatever he finds. Danny told me that he finds tons of coins, from pennies to quarters, and often finds jewelry and other valuable items. He showed me a clutch of gold necklaces. He let me keep a very worn out penny.

At this point, a small crowd formed around Danny, attracted by the bright flashes from my camera. One passerby asked Danny why he didn't simply wash all the items at once with water. Danny explained that he liked scrapping the coins on the ground. Kept him busy.

After chatting with Danny for a few minutes, I thanked him for his time and for letting me take a few pictures. I then walked over to the Philly Federal Reserve Bank. The bank was advertising a "Money in Motion" exhibit from a large banner at the corner of Arch and 7^TH streets. Admission was free.

I was embarrassed for the Bank.

Here we have the most powerful central bank in the world, a bank that has been printing money out of thin air in an effort to "save the American economy," a bank that wants the world to believe that giving money away to people who have amassed much of their obscene wealth by figuring out ways to get very rich without providing useful goods or services, is the best way to extricate America from the Great Recession. I see "Money in Motion" and I think, "Hmmm, our central bank actually wants to show off how it helps the masters of greed who caused the financial crisis get even richer by sucking untold billions from taxpayers pockets. Hmmm...."

Many Americans know that the federal government spent hundreds of billions of dollars to bailout the insurance giant AIG. What many don't know -- because most mainstream media outlets don't want to go there -- is that the investment bank Goldman Sachs got about $12.9 billion from AIG's bailout bundle. Don't believe me? Read about it here. Just as sickening: foreign banks got billions of that bailout cash as well, including Barclays PLC, Societe Generale, and Deutsche Bank. Money in Motion, baby.

The AIG bailout was a crony capitalism, plain and simple. Goldman has never been a vital part of the American financial landscape. Without AIG's bailout money, Goldman would have taken a huge loss, but would have survived. Meanwhile, countless commercial banks, the ones that lend money to businesses and consumers and help keep Americans employed, are still failing at an alarming rate.

A laundromat owner -- someone who makes money by providing a useful service to her community -- lets a homeless guy clean out washing machine drains and keep whatever he finds: that's my idea of money in motion. It's honorable, civilized and far more American than any multi-billion dollar crony bailout.

Here's an idea: why doesn't the Philly Fed Bank open a small office that's open to the street where people like Danny can connect with business owners who are looking for simple services like cleaning laundromat drains or sweeping floors. They could call it the Informal Services Marketplace. Could help a lot of people who can't find work in the formal economy, or people with mental issues who aren't mentally fit enough to hold down a solid job. Criminal background checks would be mandatory, of course.


I'm glad I bumped into Danny that night. It's so easy to feel overwhelmed by an anemic and dwindling income, healthcare inflation and child support payments. It's good to get some real perspective every once in a while. Helps to rejuvenate the entrepreneurial spirit.

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Cutting Back

When news about the economy is bad, individuals and businesses cut back; they cut jobs, budgets, forecasts, etc. These cutbacks in turn cause the economy to worsen, as we spend less and take on a defensive financial posture. The bad news and the cutbacks mutually reinforce each other, and can produce a long and painful recession, or a depression.

Are we in a depression? In my opinion, no, we're not, and we aren't headed for one either. The American economy is simply too robust, and today the government has a lot more power to get growth back on track than it did back in the 1930's. The main difference between now and then is that back then money was backed by gold -- the gold standard -- whereas today we have a fiat currency. Fiat currency means that the Fed and the Treasury Department can literally pump trillions of dollars into the economy, as they are doing now, without putting the real treasure -- American gold -- at risk. Soon, everything will be OK. All our government has to worry about is inflation down the road, which it will tackle by raising interest rates. Easy.

I'm still trying to figure out what the next bubble is going to look like. During the Clinton years, it was technology in general, with the Internet leading the charge. Earlier this decade, it was, of course, housing and easy credit. But how is America going to prosper after the Fed has raised rates? Can the green movement really generate serious wealth for you and your neighbor? Will American innovation be a big enough engine that can raise the standard of living for a large swath of American households? I'm still trying to figure it out, so I can prepare for it and ride that wave when it comes.

For now, my prediction is that this recession will last until at least the second quarter of 2010. Fed Boss Ben Bernanke, America's most powerful economist, recently said that he thinks a return to growth will happen by the end of the year. Here's a clip:

"...We continue to expect economic activity to bottom out, then to turn up later this year. Key elements of this forecast are our assessments that the housing market is beginning to stabilize and that the sharp inventory liquidation that has been in progress will slow over the next few quarters. Final demand should also be supported by fiscal and monetary stimulus. An important caveat is that our forecast assumes continuing gradual repair of the financial system; a relapse in financial conditions would be a significant drag on economic activity and could cause the incipient recovery to stall. I will provide a brief update on financial markets in a moment.

Even after a recovery gets under way, the rate of growth of real economic activity is likely to remain below its longer-run potential for a while, implying that the current slack in resource utilization will increase further. We expect that the recovery will only gradually gain momentum and that economic slack will diminish slowly. In particular, businesses are likely to be cautious about hiring, implying that the unemployment rate could remain high for a time, even after economic growth resumes..."

I think Bernanke's prediction is too optimistic. In my opinion, the housing problem needs more time to stabilize. I'm hoping Uncle Ben is right, and I'm wrong. But I understand where he's coming from. Bottom line: The best way to break the self-reinforcing, downward spiral is to dump as much cash as possible into the financial system, and inject as much optimism as possible into the collective American psyche.


No More TV

Since the peak of the credit crisis in October 2008, I've been cutting back in many ways, but yesterday I did something I never thought I'd ever do: I canceled my cable TV. I kept the High-Speed Internet service, but canceled all cable TV options. I'm no TV addict -- I never watch TV during the day -- but there are certain programs I enjoy when I need to take a break from work. Here's a list:

• Nightly Business Report
• Nature
• NOW
• Bill Moyers Journal
• Secrets of the Dead
• Frontline
• Masterpiece (they should run I, Claudius every year)
• Modern Marvels
• How It's Made
• On The Money
• Suze Orman
  
• Kudlow and Company
• for the occasional laugh: Family Guy, Robot Chicken, American Dad, (that alcoholic, drama queen alien cracks me up) and South Park.
  

Digital TV is just around the corner, and I'm hoping it will work in my area. Conventional TV never worked where I live. I think it's because the cable company is sabotaging it. When I had cable installed years ago and asked why I couldn't get any free TV through the airwaves, I was told that it was because I'm too close to the airport. Nonsense!

I won't miss Comcast. I don't like the way the company operates. They treat their customers like suckers: all those ridiculous fees! For example, why should I be forced to pay a monthly fee for a cable box? Should be a one-time fee. Moreover, the more channels you have, the more they charge you for each cable box! It's BS and I can't stand it.

It's all good, really. Fact: all the smartest and most accomplished people I know either don't own a TV or they have a TV set but only use it to watch rented movies. Yep.

I really need to play catch up with my reading list anyway.

Expanding My Culinary Repertoire

I've also been expanding my skills in the kitchen so that I don't get the urge to eat out as often as I do. I need to learn how to cook dishes that don't require a lot of preparation, cook fast and taste great. I'm middle-aged, so eating right is important. Besides, I have no tolerance for grilled cheese, Ramen noodles and the like.

An old boarding school friend helped me perfect what has become my most common meal: London Broil. This cut of meat is always reasonably priced at my local market, and, thankfully, it goes on sale quite often. There is no need to marinate this steak for hours as many pro chefs will tell you. I make an extremely tasty meal from this cut like this:

1. List of Ingredients: London Broil steak, Lea and Perrins Worcestershire Sauce, one yellow onion, olive oil.
   
   
2. Preheat your conventional oven to 375 degrees.
   
   
3. You want to caramelizing slices of a yellow onion in a pan with olive oil while the meat is cooking in your conventional oven. Begin by heating the olive oil on high heat, add the onion slices then turn the heat down to medium-low. Turn slices every 5 minutes or so until nicely browned. Meat will be done a few minutes after your onions are ready.
   
   
4. While the onions are caramelizing, place the steak on a glass Pyrex® baking dish. (FYI: all Pyrex bakeware is manufactured in the USA!)
   
   
5. Poke holes on one side of the meat with a standard fork. The more holes, the better.
   
   
6. Shake up a bottle of Lea and Perrins Worcestershire Sauce and flood the perforated meat with plenty of sauce. Don't be stingy. Important: Don't use any other brand of Worcestershire sauce.
   
   
7. Flip the meat over and repeat steps 5 and 6.
   
   
8. Place meat in oven, middle rack, and cook each side for 12 minutes.
   
   
9. Remove meat from the oven and cut into the center. You should have a thin, brown outer layer and plenty of pink in the middle. This meat is best when it's medium-rare. If you don't like all that rawness in the middle you can stick in back in the oven for a few more minutes, but be warned: if the meat is brown right through to the center, it will be tough and won't taste as good.
   
   
10. Add your carmelized onions to the pyrex dish with the meat and let the meat stand for 3-5 minutes. Makes sure the onions are submerged in plenty of drippings. Also, use a spoon to spread plenty of drippings on top of the meat to keep it moist. And you're done!
    

You can save even more time by forgoing the onions. Meat will still taste great.

While the meat is cooking, the smell of the cooking meat will probably make your mouth water. I always snack on a raw carrot while cooking.

I get plenty of carbs from my other meals during the day so when I cook this dish I have it with a side of salad and a couple of raw carrots. This roughage is very important if you want your gut to last a good long time (i.e. avoid colon cancer.) I also eat plenty of fruit during the day to keep my pipes happy.

One bite of this and all my cravings for a savory restaurant meal quickly melt away.

I don't worry about cholesterol since a) it's never been a problem for me, b) no problems with it in my family history and c) I believe in the Blood Type Diet.

The above is a great meal for a bachelor. When my daughter visits, we usually enjoy pasta with low fat meat sauce (I brown the meat, dump it in a colander then run it under hot then cold water to get rid of the fat) with a salad on the side.

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Recession Worries: Bad for Teeth; Boon to Dentists

Six days ago, I woke to find pain in my jaw, on the right-hand side near the temple. The pain wasn't so severe that I couldn't work or think (yes, I've known that kind of mouth pain in the past), but it was annoying. I was worried about the cause. Could it be Tetanus (also known as lockjaw)? Or maybe I was grinding my teeth in my sleep? I'd never had a problem with nocturnal teeth grinding, but to me it seemed the most likely cause.

I decided to try my own fix. In bed, and close to dreamland, I got into the habit of extending my tongue so that it formed a barrier between my upper and lower gnashers. There was little change after a day, but two days later the pain was almost completely gone, and my tongue suffered no ill effects. Today I woke to find that my jaw was 100% back to normal.

I'm thankful that the pain has been eradicated, but now, once again, I'm worried about the cause. I'm 99% certain that it's this recession. I've been worried about my income, bills and responsibilities for some months now, and I think the anxiety is starting to take it's toll on my unconscious mind. Am I getting enough rest? I feel like I am, but I'd need to go to a sleep center to know for sure.

Then, earlier today, I listened to a great episode of my favorite NPR radio show This American Life. Today's show was called "Scenes From a Recession." The show begins with a segment about how this recession has been a boon to dentists. Nocturnal teeth grinding is up, resulting in chipped and worn out teeth. I was sorry to hear about the teeth, but it was nice to know that I'm not alone.

This recession episode also features a great piece detailing, in documentary form, the closing of a failed bank (if you're wondering which bank, it's this one.) Good stuff.

And that's not all: there's also a fascinating piece covering the final days of a Circuit City store, and it includes the kind of detailed coverage I've come to admire -- no love -- about This American Life (FYI: Circuit City no longer exists.) I found this particular story compelling, because I always thought the service at Circuit City was beyond terrible, and most of my friends didn't agreed with me.

If you missed it, the episode will be available (at the story link above) as a free MP3 download within a few days. Highly recommended.

Of course, if I'm wrong and it is Tetanus, I'll blog about it at this blog, from my hospital bed! But I think I'm OK. If the pain comes back I'll look into getting a teeth grinding guard later this week.

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Bad Economic Times for People = Trouble for Pets

The Associated Press recently reported that,
"one in seven [pet] owners nationwide reported reduced spending on their pets during the past year's recession. Of those cutting back, more than a quarter said they have seriously considered giving up their pet." This article went on to explain that the average annual cost of owning a dog is $1,400; a cat, $1,000. Those are not easy numbers in an economy where every penny of our paychecks seems to be spoken for before reaching the bank account.

The expense of pet ownership is not a surprise. After all, any pet owner who has ever confronted an emergency vet bill certainly knows that pet ownership can be a real financial burden. But now, the question is not one of emergency – at least not in the sense of a cat getting hit by a car, or a dog overdosing on coffee beans (actually happened to my sister’s dog Viszla), or a Labrador needing a major surgical procedure for displaced hips. Those kinds of emergencies are heartbreaking, and pet owners always face hard choices about them. But now, we’re talking about a different kinds of emergencies for people and their pets: What happens when my house is foreclosed and the apartment I can afford doesn’t allow dogs? What happens when I have to work a second job to make ends meet, and I can’t afford a dog walker? What happens when, frankly, the burden of cat food, liter, routine flea and tick treatments, and veterinary services are just more than I can afford?

I faced a similar situation a few years ago when I went through a sudden divorce and lost my home. It was difficult enough to know what to do with myself, let alone the one year-old, 70 pound, retriever-Sheppard mix! 70 pounds of exuberant puppy who still liked to chew the occasional pair of underwear or the delectable couch pillow from time to time – how would I find a housing situation where I could keep this guy? What would I do with him when I was at work?

I was fortunate; my parents took us in until I could get back on my feet and find housing where he was allowed. He’s still with me at age four, and the love, companionship, and sense of security that he’s brought me are worth any sacrifice I may have made. However, I’m sure I could have been out of my parent’s house sooner if I hadn’t been looking for housing and work that would meet my financial needs as well as the needs of my pet.

In the process, of all this, I learned a few things to make pet ownership more affordable, and I’d like to share those tips with you here. However, I also recognize that even with practical approaches like these, keeping a pet sometimes does become just too burdensome, too difficult. While we all acknowledge that in an ideal world, a commitment to a pet is for life, people do get into situations that are so unexpected or out of control that the animal needs a new home. Also, people can become ill or have to escape an abusive situation. With that in mind, this article also provides tips for finding the best placement for your animals when crisis merits the extreme action of having to give up your pet.

Tips and Considerations to Make
Pet Ownership More Affordable:

• Give up your gym membership before you give up your dog! Walking or jogging is good exercise, and the $50 a month you spend on a gym membership will cover dog food. It’s easier to re-join a gym when times get better than it is to get your pet back! Visit Hike with Your Dog to find dog friendly places to exercise in any of the fifty states.

• Form a dog walking Co-op. A huge problem for (especially single) dog owners is what to do when we have to work a 14 hour day and it’s not possible to get home to take the dog out. Dog walkers and doggie daycare are expensive! A resourceful alternative is to find one or two people in the same situation and form a Co-op where you can exchange services. Think creatively – it doesn’t have to be a day by day exchange. I once knew someone who walked her neighbor’s dog every Wednesday afternoon in exchange for two consecutive weeks of vacation dog sitting in the summer. This worked out great for both of them, and went on for years.

• In a crisis situation, such as having to flee your home due to a domestic violence situation, many animal shelters offer temporary housing for dogs, cats, and even exotics. Inquiring at your local shelter is a good place to start when there’s a true emergency such as domestic violence, fire, or hospitalization. The Humane Society of the United States provides an on-line directory of nationwide safe haven services on their website.

• Keep your pet vaccinated to avoid fines and illness! Most shelters offer annual rabies clinics where they give this vital vaccination for free or at a greatly reduced rate. For example, Anne Arundel County Animal Control in Maryland offers this weekly, the price per pet only $5. Local animal shelters can usually provide information about similar programs in your area.

• Spaying or neutering your pet is one of the best ways to keep costs down. After all, it avoids the pitfall of having, accidentally, more pets! Many shelters, and even some vet schools, offer spay/ neuter support or clinics, so you should inquire locally. Usually, these services can be provided for a discounted rate of $40 - $50 – services can be as much as five times that amount at a regular vet’s office. The national organization SpayUSA offers a list of reduced price services nationwide.

• Finally, be practical. A long time ago, I decided that if I couldn’t afford a multi-vitamin for me, then Basil wasn’t getting any fancy supplements. On the other hand, I continued to feed him a quality dog food (even when I was eating PB&J for dinner) because I knew that the quality food would keep him healthy, which would prevent trips to the vet. The same went for preventative flea/tick medications and heartworm pills. I found the money for them because I knew they would prevent bigger problems. Believe me, your pet would rather be curled up next to you at night, after a dinner of slightly less-fancy food, than lying on a floor in a shelter somewhere. I speak for the dogs and cats here. Pets can go through the ups and downs of family life with us.

In addition to the tips I’ve given above, the ASPCA website offers some excellent, practical tips for making pet ownership affordable.

Before you give up your pet, consider the terrific physical and emotional benefits of having a dog or cat in your life. The Center for Disease Control shares some of these benefits on their website. Here are two notable quotes:

“...Pets can decrease your blood pressure, cholesterol levels, triglyceride levels, [and] feelings of loneliness...”

“...Pets can increase your opportunities for exercise and outdoor activities, and opportunities for socialization...”

It’s hard to put a price on that. I know in my case, Basil has comforted many tears through my divorce, kept me company when I’ve been lonely, and has forced me to get up in the morning to walk and feed him when I didn’t have much other reason for getting out of bed.

Sometimes, though, there are situations where owning a pet becomes impossible. The safety of people comes first, obviously, and I know it must be hard for those who have to lose a pet because they’re leaving an abusive relationship. It’s also hard to admit for any reason that you’re unable to adequately provide food, shelter, and exercise for an animal that you love. Sometimes, what is actually the responsible thing to do – giving up the pet – may not appear responsible to others. I don’t think it’s a decision to make lightly, but sometimes it’s necessary. If it is necessary to give up your pet, you owe it yourself and your animal to handle the situation responsibly. I’ll never forget a story that a shelter worker told me: she got to work and found six cats in cages on the shelter doorstep, all dead or near dead from hypothermia. That's cruel, inhumane and inexcusable.

Strategies for Finding a Safe, Happy,
and Appropriate New Home for Your Pet:

• Use networking among family and friends as your first resource for finding a home. And, no, I do not mean guilt tripping someone into taking your animal! I mean, put forth a word of mouth and email campaign to find the right home for your dog or cat. A friend of mine, Sarah, had to go through this when she found she couldn’t afford her one-year-old lab-pitbull mix. According to Sarah,
  
  

  “It just wasn’t fair. I probably shouldn’t have had the dog to begin with… she had too much energy and I couldn’t afford to work less. I didn’t have the time for her.”
  

  Sarah’s story has a happy ending, though.
  

  
  “I used email and contacted friends. I offered the dog, with her crate, bed, toys, and over a month’s supply of food. She was up to date on all her shots.”

  
  It took some time, but Sarah eventually found a family who lived on a three acre property to take the dog.
  
  

  “I visit her sometimes,” Sarah says, “and they send pictures.” She adds, “It’s for the best.”

• Another great resource is a reputable breed rescue organization such as Yankee Golden Retriever Rescue or Persian and Himalayan Cat Rescue. This works best if you have a purebred animal, but sometimes the organization will accept a mix or “similar-type.” The reason this is a good resource is these organizations generally do not euthanize, foster dogs in temporary homes, and have an understanding of the kind of home your dog or cat will do best in.

• Tell your veterinarian that you need to find a home for your pet. Vets (and veterinary assistants) see lots of pet owners every day and they know who the responsible owners are. This can be a great resource. The same goes for groomers, dog walkers, trainers, feed store owners, or any other professional who may know and like your pet.

• The popular website Petfinder.com will not allow individuals to post pets there for adoption. However, Petfinder does offer a great search engine for finding animal welfare groups by zip code. Sometimes an animal welfare group may not be able to take your pet in, but will be willing to make a courtesy posting on Petfinder for you if they believe your animal is a good prospect for adoption.

• Contact local shelters until you find someone willing to take your animal. Check for no-kill policies. Provide, if possible, a monetary donation to the shelter to help them support your dog or cat until they can place it. NEVER, ever just drop your pet on a shelter doorstep. In many states, that’s illegal and punishable with fines or jail time!

• Be careful when giving away your pet! You don’t want your pet to end up in the wrong hands, so request references/ visit the home of anyone you’re going to give your pet to, even if the person claims to be a representative of a rescue organization. Do a little research. You are going to all this trouble to avoid having the pet meet an unhappy ending! It would be terrible to give your pet away and find out later that the home or organization was not what it claimed to be.

Needing to find an animal a new home is a very hard situation to be in, but it can have a happy ending. The right situation can come along like serendipity. Recently, I interviewed Alyson, a single woman in her fifties who has always loved animals (and has owned many pets) but has been without pets for a while because she's had to care for her mother. After her mother’s death, Alyson wished for a new animal, but part of her was still grieving and this held her back from rushing out to get one. Then, one afternoon, she was at an old friend’s house and mentioned that she’d been thinking of getting a pet. The friend encouraged her to take Jack, a litter-box trained Dwarf rabbit that the friend’s 14 year-old daughter just simply didn’t have much time for anymore. A first-time rabbit owner, Alyson quickly takes out her camera phone to show me a picture of Jack, saying,

“I saw him out in the garage and he was so cute and looked so lonely, I just thought, it’s time. And [Jack] really has personality. If he wants my attention, he jumps up and begs for affection. It’s good for everyone. My friend -- Jack's previous owner -- feels happy because she’d been plagued with guilt about the situation. She and her kids can come to visit. I’m happy to have this delightful pet. And Jack’s happy because I can’t get enough of him. Everyone’s happy.”

Finally, if you do find yourself in a situation where you have to give up an animal, you should honor that animal by putting yourself on pet probation. I’m not saying, never own a pet again, but I am saying, make yourself wait 3 – 5 years, until your life situation (financial, housing, etc.) is stable enough that you know you won’t get into the unfortunate position of having to part with an animal you love.

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My Mom Can Be Such A Comedian...

A few days ago I was having a conversation with my mother, and, as usual, she asked how I'm doing financially. I told my mother what I tell everyone who asks: I have no complaints. Of course, I understand why my mom asks all the time. She's known me my whole life, and for a relatively large percentage of my time on this planet, I've had plenty to complain about, including massive credit card debt, a student loan-related judgment against me, and various creditors calling me incessantly trying to collect. I'm not rich, but I am pleased with my financial circumstances, especially when I consider my irresponsible past. I've learned a lot over the years, and one key thing I've noticed is that you can live quite well and be happy while earning a lot less than the Donald Trumps of the world, but only if you have no debt, or your debt is at a very manageable level. In other words: you'll be surprised how little money you can live on when you're not servicing mountains of debt. Yep.

So this conversation with my mother took an interesting turn this time around, as she asked me if I was aware of my brother's problems with credit card debt. I told her that I wasn't, and she proceeded to enlighten me about my older (by 3 years) brother's credit card debt, which is currently at a whopping $45,000, and rising. When she told me, I did not believe her. I thought she was pulling my leg. You see, when I was growing up, my brother always seemed to have his act together when it came to matters of money. He always had savings, when I had none. He always had a job during the summer breaks, whereas my summer work history was...well...spotty. I asked her why he had so much credit card debt, and she told me that he just wasn't doing well. I still didn't believe her.

The reason for my incredulity was simple: my brother and his family are all healthy (so no big medical bills), he has a steady job working with computers and -- OK, this is the big one -- he doesn't pay rent and he doesn't have a mortgage. Yes, being the oldest boy has it's privileges, and one key benefit that he, his wife and his daughter have been enjoying for about a decade now is living in my mother's house for free (and no: my mom doesn't live with them.) Don't get the wrong idea here: I am not, and never have been, bitter about my brother's free accommodations. I think it's great. The way I see it, if you can take advantage of a good thing, then do it. Besides, I really wouldn't want to live in the same house where I grew up (my sister feels the same way.)

The only housing-related bills my brother (I'll refer to him as Phil from now on) has to pay for are the utilities and property taxes. I know that old, stone and stucco house can be expensive to heat, but I'm still not feeling any sympathy. I also know that when things aren't going well between a man and a women (his marriage isn't the happiest), money tends to drain away, for all kinds of reasons. Still, $45,000?

So, my mother eventually laid this Godzilla of a question on me. She asked, "Why don't you and your sister put some money together and help your brother out?"

I didn't answer my mom. I sat silent for about 10 seconds, and she understood what that meant: sorry, but no. She quickly changed the conversation at that point.

Once again, I am sorry, but I'm almost ready for my midlife crisis, and I've only just started building a serious savings account. Why should I help Phil? I took some serious risks, used up all my 401K savings and worked hard to get where I am today. Phil should work hard too, get a second job if he has to. I had the same problems with credit cards not too long ago, and I did the right thing and paid them off. It took a while, and it was quite painful at times, but I did it, because it had to be done. Bottom line: I know that Phil has the inner fortitude to get disciplined and get serious about fixing his finances, so I'm not going to be a crutch for him. If we were talking about a medical emergency, I would happily open my wallet. But credit card debt? I don't think so.

It's just like the current situation with all the bad mortgage debt dragging down the American and global economies. Helping those speculators and investors out would create a moral hazard. People should be willing to bear the pain and take their lumps. Besides, if we get a recession, it will help to purge the ill-considered speculating, bad debts and bad investments that have created bubbles in markets all across the globe. Market players will eventually rise from the ashes stronger, wiser and more mature.

And so will my brother Phil, just as soon as he tames all that ugly debt.

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