How YOUR Saving Advice Caused The Financial Crisis
Once upon a time there was Joe who made living by selling hairdresser’s furnishing. One day Joe started reading personal finance blogs. Until that day he used to spend a lot of money for eating outside, gas, clothes, movies, popcorn, gadgets and his home. The economy of his country was working fine (well, almost).
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But the day he started reading blogs, Joe learned that the way he lived his life was wrong. He learned that he had to save money instead of spending it all. He learned that eating outside was bad, so he started cooking rice and potatoes at home. Because rice and potatoes were the best food. He read that in the blogs. Meat and fruits were not as good because they were expensive. He started wearing his clothes more and buying less new clothes. When he bough any new clothes, they were produced in China, because they were cheaper.
Joe decided not to buy a new house. Instead of that he could live in a van. Vans were cheaper and you could get one without mortgage. Because having a mortgage was bad. He learned that from blogs.
Instead of going to movies Joe stayed at home and played cards. Spending money on movies was not a good investment. He had to save money. He read that in the blogs.
One day a friend of Joe – Sam – lost his job flipping burgers at McDonald’s. His bosses said that more people cook at home, less people eat burgers and there was no more work for Sam. Sam had to limit his expenses as much as he could. One of the many things he had to stop buying was sweets for his children.
Wendy worked in the sweets shop. She was selling home made sweets that she and her sister were making. But not only Sam stopped buying sweets. So did many people who were flipping burgers and also had lost their jobs. The sales went down and down, Wendy and her sister couldn’t pay the rent so they closed their shop. The two sisters had to limit their expenses. One of the many things they stopped doing was to go at the hairdresser’s. So did aunt Barbara – the host of their sweets shop. She had no tenants any longer so she had to limit her expenses too.
Since many other women had to stop doing their hair-style, many hairdresser’s had to close shop. Joe had no more customers to sell his furnishing to. He had to use his saved money to survive. He was very upset, but he read in blogs about the financial crisis and how everything was going bad for everyone.
So it wasn’t his fault. Or was it?