Well the headlines are saying what everyone knew they would say. Here is how a job market normally thrives and is Rex’s common sense, anyone can understand explanation of what is happening now. The economy typically grows and with that,  jobs are created. It has been a fairly long cycle with few interruptions along the way. I knew that students would have a problem getting  jobs and have been saying this for a few years now. Is it because the cycle of growth is broken and new jobs haven’t been created? Yes, this is one part. Is it because jobs have been lost so there are diminished opportunities? Yes. Now here is something that isn’t talked about much and that is point #3. Every year there will be people retiring from their jobs and therefore new job openings are created that need to be filled. With 401k accounts in half right now, you do you think most of these people will still retire? I don’t think so. So there is another avenue of jobs opportunities that are cut off from college graduates.

I remember a few years ago when I first moved to Austin. I was young and went to HEB our local grocery store chain and asked to put in a job application as I had worked in grocery stores through High School and liked it. Well I was told there were tons of applications already for the one job. The manager doing the interviewing was nice. He told me things were tough. At that time we were having lots of job losses and layoffs due to the economy. He said they had an IBM engineer bagging groceries because he could find no other job. He said, yeah we know he will leave when he finds something else, but he is good and reliable for now. He said this is the market now. I was sorta shocked. I wasn’t too hard up for a job so had other things I could do.

My point is now, things are totally different. There is fear out there that wasn’t around before. No amount of Stimulus can cure that. It will take time and gradual growth. One good thing coming out of all of this is people are saving like never before. The Government though says this is a bad thing. Yeah if people are saving, they are not spending. I think there will be an upside to that also. If people save, when they do buy, they will start to pay cash more. I think people are getting tired of being dependent on credit cards. It is too easy to charge as it is “outa sight, outa mind” sorta attitude. It is very easy to turn over a credit card with little to no thought and purchase something. We all need to learn to wait until we can afford something before we buy. If you are buying a home for example, pay a bigger down payment. You will be glad you did later.

I have also been saying for years that the drawback to the internet is that it is so convenient. HUH? Sounds contridictory doesn’t it? Well, because it is so convenient, you can go online sometimes with no intent to purchase anything and you run across a bargain you just can’t do without. You put in the ole charge card and now you wait on the UPS man to come. So easy! Too easy! Just think before you do this next time.

This is the extent of my thoughts today. I know I have talked multiple times about credit and saving. At least I am glad to see people are saving money. They will need it for later as the economy isn’t going to get better for a while. No one knows when. You can still live a good life and enjoy it though. Having no debt makes life a whole lot better.