The Domino Worry and the Worlds Financial Markets.

This is not an issue of the have nots but an issue that the haves are concerned about. It is salvaging their empire. Average Americans are a secondary concern if any at all. No, if the crash came tomorrow average and the poor would still be dealing with the same issues. Average and poor Americans are the ones facing and dealing with, poor jobs, low pay, no credit, so who is going to get any new loans to refinance or buy a new home, buy a new car, be able to survive? That's right not any average person.

No, although the "upper" middle class is certainly feeling the impact it is that nagging 40 million who will take the real hit. At $60,000 a year I do not think government is really worried about them other then to keep them from sliding further. In my opinion that is really who the stimulus was geared to.  No the real issue is as I said keeping the economy moving.

So what will be impacted first. Well in my opinion those fringe items such as Cell Phones and Cable TV will be one of the first to feel the bite as consumers look for ways to rollback their costs. I have already dropped mine in favor on an Antenna. Then again the real question is if they wish to keep their land telephone line or switch to a cell carrier only? That would impact internet access. Another example, a short trip to the store produced a $107.00 bill at the checkout. Predominant items were not food stuff other then milk and eggs, some banana’s, cooking oil and the rest on items that are what I call money down the drain. That is cleaning items, various paper items. Of course on the way home I needed to fill the tank on my 04 Focus. That took 12 gallons at $3.25 a gallon or $39.00. I guess some would leap at that, not me. I got rid of my big cars for just that reason. Do you think it is bad now just wait, especially after the election.

Now if you throw in all the rest I have been talking to, Credit Card rates, late fees, which by the way are the third highest revenue producer for these companies, doesn’t that tell you something?

Yes, your friendly banker at work. Tell you how friendly I tried to call to refinance my mortgage. First they were busy, "swamped with calls", second they would call me back. Ok should I hold my breath? How do these people in Washington look anyone in the eye?

So as Average Americans just go down the simple logical things that are all about you from food, to fuel, to insurance for your cars, to home owners insurance, to paying for your kids school lunch, buying their uniforms, sending them on a class trip, how about those dance lessons, etc and who is going to be impacted? Well let me explain once again. We are not talking about those making $60,000 and up. That is what those in government allude to as ‘the middle class". How can any average Americans be included in that when Hillary and Obama think middle class incomes start at between $70,000 to $97,000 a year.

No "middle class Americans" kids are still taking dance lessons, their kids are still enrolled in sports, they still go on vacation, they still drive that big car, they buy at upscaled stores, they do not worry if their food bill is higher, yes they complain, but do they they really care about their cable or phone costs, etc. Now, once again, I didn't say that they don’t gripe, it is just that they are not as impacted like those 40 million average Americans and the poor. Their worry is how bad will it get?

So the real question is to stop the slide now at whatever costs, understanding that if they could do this their hope is on that $60,000 and up crowd to recover over time. However, if that group starts to slide lower financially and their Credit Card debt rises, savings go down, no vacation, they drop out of those extra activities, they take less of a vacation, they cut back on the Bling and frills, and they can’t get to work because it costs too much to fill the tank, then there is a real impact. That leads to cut backs at work, more layoffs, and more of the same, etc, etc, etc.

Now there is an economic plan. If you have read my earlier work you will know what that is. So do not worry, the haves take care of the haves. As for the rest of us, we will all kiss them for it and that’s a fact Jack as the movie goes. Hey think one world order and you will find your answer.

So the real worry is if his domino effect continues and gets worse. In my opinion, I do not see how it can’t because as McCain says the good jobs are gone and they ain’t coming back. To create new jobs of that pay level will take years. Mr. Gates wants to use more Green Card holders so will Americans even get those jobs and education, well how many jobs will they create, enough for all those being educated, yea, right and now when we need it. yes, right?

Hey, by chance, are you interested in a bridge?

Robert T. Melaccio Sr. 2008 Copyright ©2008 Robert Melaccio