New Year, New Financial Challenges

Whew, 2008 is over. And yet, 2009 is already turning out to be challenging.

We're facing a $1.2 trillion deficit. Unemployment is still trending up, while home prices continue to decline. Stock losses have left a $400 billion shortfall in corporate pensions. And, the stock market continues to dive, as it did yesterday.

Despite these things, you still can survive this economic downtown. I'll be online next week to answer your personal finance questions on how to make 2009 a better year for you financially. So join me at Noon ET on Jan. 15.

I'm Not Just A Consumer

Excessive consumerism was a large factor in the economy's collapse, yet some of our leaders still think we can get out of this mess by increasing the flow of credit so people can consume even more. In Sunday's column, I wrote about why we should reject the consumer label.

That column generated a lot of feedback. Here's what some of you had to say:

Ric Wolf in Greenwich, Conn., said: "Not only should people get away from building their self-esteem through the things they own, they need to accord more respect to people who live a humble and useful life. The next time one sees a person wearing a gaudy Rolex or driving a Hummer¿ask that person 'How many education scholarships have you sponsored? Or how many libraries have you funded?' THAT is what should command respect."

Ken Owen of Leesburg, Va., wrote: "Easy credit is a huge, massive contributor to our current economic woes -- in my opinion, it is the 800-pound gorilla."

Albuquerque, N.M., local Estelle Galbreath said: "Some years ago (and I've had 77 of them) I rebelled at being called a consumer and decided that when I was in a retail establishment I was a customer and wanted to be treated as such. It's been a lonely battle, but I win one now and then."

"I, like most people, don't think of myself as being just a consumer but sometimes act like it, nonetheless," said Carl E. Waranowski from Hooksetrt, N.H. "Ideally, good values about saving ought to be taught in the home. It is evident; you will not get it from society in general."

John Davis of Bethesda, Md., said that he's "objected to being referred to as a consumer" for many years. "We have become a nation that produces little more than debt."

"It is high time we stop emphasizing consumption and start understanding we need to save," said Richard Henninger, from McLean, Va. "We can't continue to spend more than we produce indefinitely. I shudder to think of what will happen when our creditors decide it is time to quit lending us funds to pay for our deficit spending."