I listened to NPR this morning and got a better understanding of what happened yesterday.  It also goes to prove my point that actions based on the pursuit of money as an end to itself do not serve anyone - yourself or the public.

So, here is my brief recap from NPR on WHY AIG and NOT LEHMAN?

The reason that AIG got into trouble is because they sought out a new insurance business involving credit default swaps.  They didn’t really pay attention to what they were getting into, but it was a HUGE business, so they delved into it - possibly to the tune of $70 trillion.  So basically, it’s insurance in case a bond goes belly up. 

Insurance on homes and such works in a way that the majority of the other insurance policies will protect and provide enough capital for the one home that burns down in a neighborhood.  They base it on the fact that one house burning down does not impact the other houses.

Insurance on bonds doesn’t work the same way.  If one bond fails, people lose faith in the market and other bonds start to fail.  It becomes a domino effect.

AIG doesn’t appear to have really looked into that very deeply.  They followed the money trail, thinking everything would support itself.

This might not be a big deal, but a lot of the BANKS in our country had this insurance.  If AIG goes belly up, all the banks might stop doing business with each other.  Banks do business with customers, but banks also process loans and transactions with other banks - this makes up a large amount of the economy as we know it, the passing back and forth of money between banks.  If banks are afraid to loan any money to OTHER BANKS, our economy comes to a screeching halt immediately. 

The other aspect of these swaps is that it is relatively obscure as to who holds them.  It could affect ALL the banks, or only a few.  There isn’t much of a way to check into that for sure (at least in a short time.)

Thus the government stepped in to stop our economy from totally collapsing.  Ta-Da!

Please note: I am not trying to chastize anyone. Perhaps I am speaking to myself, because I have been a part of the problem for some time as well.  Perhaps I’m trying to give myself hope in the face of what appears to be some dark times ahead.

In this world of continual orange alerts, fear-mongering, and get-them-before-they-get-you politics, I’d like to actually clear my throat and say,

“Ahem - has anyone noticed that our economy, as we know it, is gone?”

I am not trying to use fear tactics; I am not trying to sound an alarm. I’m trying to ring a bell. This round of incompetant leadership and fiscal values is over.  This round (read: century) of entitlement and manifest destiny is done. 

Oh, people have noticed that there are issues. Possible recession, interest rates, housing bubble, credit crisis - a lot of terms are being used to explain away what’s going on. But everyone thinks that we’ll have a low point, and things will pick up again. Just like people tend to think that gas prices will go down again, someday.

I don’t think so. I think the face of how our economy works is changing. Financial companies that were around through the Great Depression are now disappearing off the face of the economic photo of America.

“To live is the rarest thing in the world. Most people exist, that is all.” - Oscar Wilde

Tell me. What do you do for a Living?

I’m eager to know.  Because I don’t think what we do for a Living necessarily is our “job”, or even our “profession”.

I was thinking about this one morning, discussing with Jizo-Sama regarding the titles we take on willingly, or don’t allow ourselves to take on.  That’s a whole OTHER post.  But it sparked something in me about the fact that we label ourselves all the time, but almost always about our job or profession.  Joe is a plumber.  Sue is an Administrative Assistant.  Mr. So-and-So is an Attorney, and Ms. So-and-So is a Graphic Designer.

But that’s not really what we do for a Living.  That’s what we do for existing.  For bill-paying.  Some of us are lucky enough to have jobs that would qualify as “living”, or even get to do their preferred “living” actions within the confines of their job.  Perhaps Mary Smith loves to write, but does it within her annoying Copywriter job.  She could probably ditch the other aspects of her job, but it allows her to do one thing she LIVES to do all the time.

But the majority of us put up with corporate world in order to Live a certain way, to Do certain things.   They rarely have anything to do with concepts we associate ourselves with, and even more often these days, have little to do with what we studied in school. 

I find it interesting that we ask a seven year old what they want to BE.  They are allowed to BE anything.  When children get older, we ask them what they want to DO.  Now we have narrowed it down from dreams to interests and hopes.  At adulthood, we don’t even deal with the term “want” anymore.  What DO you do? 

That’s like asking: What do you do now that you’ve given up your dreams and interests?

I’m reminded of Fight Club where Tyler says, ”You are not your job.”  I am not my job, but I willingly take on those labels specifically when people ask me what I do for a living.  But in reality, that says so very little about me.  In fact, it says near to nothing. 

So I asked myself: what do I do for a Living? Not my job, but my dreams and joys.  What do I do to experience life?  What would I call myself? 

Thinker. Dancer. Writer. Blogger. Singer.  Lover. Pennsic-goer. Reinactor. Traveler.  Seeker.  Retail Therapist.  Activist.   

So what is it that you do for a Living? 

Apparently, there are millions of people who just forget about bank accounts, safe deposit boxes, and more.  Legally, the government has to hold onto these things.

 Go to this website to find if you’ve been missing out on something that is yours!

http://www.unclaimed.org/

I’m still looking for that sound.  Another post with linkage that inspires me to get back on that horse of frugality.

50 Ideas for Frugal Living (zenhabits again) - What is nice about this list is that it suggests that you decide what makes you happy, and do that.  Very Your $ or Your Life.

http://zenhabits.net/2007/08/the-cheapskate-guide-50-tips-for-frugal-living/

Renting VS. Buying (linked from zenhabits) This one has several great article links at the bottom as well as being informative.

http://www.getrichslowly.org/blog/2007/07/16/renting-vs-buying-the-realities-of-home-buying/

Credit Card Hint (Getrichslowly.org) Deduct that purchase immediately from your checking account register - or quicken, whatever you use.  Then the money is always there. 

http://www.getrichslowly.org/blog/2007/08/08/a-quick-trick-for-tracking-credit-card-expenses-in-quicken/

Three Ways to Ask for More Money (the Mint) - Not many people suggest the “call and ask for a lower rate” method - it is too conflict-oriented for our world.  But it works.  I’ve done it.  And it is about time to do it again.

http://www.mint.com/blog/moneyhack/three-ways-to-ask-for-more-money/

 Your hints and tips?