Money Stress Created – Is Time Magazine at Fault?

By Neal@Wealth Pilgrim on Feb 21, 2009 in Money Stress

little-rascals

Recently a fair amount of money stress was created – is Time Magazine at fault?

Time magazine recently published an article naming the 25 people who are responsible for the current economic crisis. (Don’t worry, the list doesn’t name anyone living in Agoura Hills.) When I saw the article, I felt a bit weird.

On the one hand, it felt strangely good to put the responsibility squarely on the shoulders of somebody else. (I’m not especially proud of feeling that way but its the truth.) The list contained the names of such people as Angelo Mazilo (CEO of Countrywide), Bernie Madoff, President Bush, President Clinton, Alan Greenspan and 20 other “culprits”.

To be sure, some of these people were extremely greedy. Many were just stupid. Others were stupid and criminal. But what they all have in common is that they exhibited disastrous judgment.

But are these 25 people (as Time suggests) 100% responsible for the mess we currently find ourselves in? Hardly. Lots of people bought homes they couldn’t afford. Lots of consumers spent money they didn’t have. Lots of Wall Street sharpies sold investments that didn’t make any sense. No, it took millions of people to create this problem. Not just 25.

The danger in creating a list like this is that some people will be lulled into playing the blame game with Time magazine. This will keep them busy (buying magazines I guess) rather than focus on the things that really count right now. What are those things?

  1. Income.
    If you haven’t experienced any reduction in your income– consider yourself lucky. If the economy continues to slow, your income could be impacted. Have you created a plan in case that happens?
  2. Expenses
    This goes hand in had with income. Have you spent time going over your expenses? Have you cut or discussed making cuts in case the income is reduced? Have you talked this through with your family? Is everyone on board?
  3. Investments
    Have you reviewed your portfolio or are you burying your head in the sand? Is the investment mix a good fit for you?

So is Time Magazine at fault for the money stress created?

 

I think that the article published by Time is dangerous because it is a distraction from what matters most. It plays to our least attractive traits – fear and anger. But maybe you disagree. Do you feel that the Time article is helpful? If so, how?  Do you think that Time did us a favor or not by publishing their list?

If you don’t answer me, I’ll feel unheard.  Well…..at least I’ll have someone to blame!

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  1. 1 Comment(s)

  2. By Dennis on Feb 23, 2009 | Reply

    You are right on with your assessment of the Time article. It seems to me “financial” pornography, that is just the bad news, which is used to sell, sell, sell also creates fear and anger. If we let the Susie Orman’s of the world talk without any responses to them, they will drive our economy the way of their predictions.

    Neal Reply:
    February 23rd, 2009 at 5:53 pm

    Thanks Dennis,

    I agree completely. Its very important to have a strong voice of reason in response to irresponsible journalists.

    Thanks for your comments.

    Neal

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