Are Financial Magazines Helpful?

While not exactly one of the mainstream financial magazines, 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 me.) 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 it’s 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) instead of focusing 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?  Maybe it’s time to start looking for great small business ideas?
2. Expenses.  This goes hand-in-hand 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?  Consider reading my You Need A Budget review and start using this fantastic software to track and tame your spending.
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!