The Economic Crisis - Who is to blame?

So it officially hit the fan today. Or at least in a way that was a wake up call to the rest of the country. The insurance giant AIG and its Titanic-like collapse has finally given every American the very same kick in the rear. That's to say - we all feel it. Of course now its not about getting kicked - but how are each of us going to respond to it? Honestly, I am torn down the middle on this one.

I can say that I absolutely do NOT want to see or hear about who is to blame for this. The reality is that this problem exists not because of the failure of one president, one political party, or government. We are ALL To blame. I posted the pic of Rush Limbaugh above to represent a number of things. Rush himself represents the arrogance that we as a country have (and continue) to display when it comes to facing our problems. Its never OUR fault - its the liberals, its the conservatives, its the terrorist, its Soulja Boy - anyone to blame other than ourselves. I know what you are saying - "how is this my fault?". Well that's what the cigar in the picture represents. Our little destructive indulgences - that ultimately lead to our demise. Addiction to nicotine - or oil its all the same people. We knew we were writing checks that our a$$ couldn't cash - so I don't understand why all of sudden there is a panic. Face the facts folks - we all got us in the hole.

Let's just do the simple math.

You can't cut taxes that fund the government and at the same time expand government spending. It doesn't work.
You can't beg for your taxes to be cut and then expect for the government to be able to take care of your every need when you run out of your own cash. That's not realistic.

If you know that your energy costs are rising along with your consumption - you don't fix that by simply getting it from some place else (off shore drilling). That's a quick fix - like putting a band aid on shotgun wound. The real solution is to reduce your consumption which will reduce your costs immediately AND force the price back in your favor. If you have a house phone and a cell phone and it costs too much - do you just talk on one of them? Or do you disconnect the one you need the least? Or the one that costs you the most?

The government has come to the decision to bail out AIG with an 85 billion dollar loan. Just as they did with Freddie Mac and Fannie May. Now I "personally" have a problem with bailing companies out of situations that they get themselves into. However, in this case while I still disagree with it - I understand it. Not doing anything would affect way more people - and a lot faster. There is some logic in trying to fight off something with an action that buys you time to come up with a better and more aggressive solution (its still quick fix though - not a real solution). But I think it sets a very bad precedent for saving companies from the consequences of their own mistakes or irresponsible practices (I bet you those Enron investors would have liked a government bail out!).

Tough times are ahead and there is no avoiding it. I think its a better move at this point to make the tough times self imposed thru strict budgeting, saving, better investments, etc. vs. facing a extended recession or worse (whatever that is). I think we all have lived a little too pampered to deal with the alternative.