The bottom line is that President Bush’s remarks on the economy mean practically nothing to you in terms of your personal finances. His remarks (and the Democrats’ after) basically amounted to political posturing. It’s nice that we’re getting a tax rebate, but for most people that will just offset the rising cost of gasoline.
And for those already in foreclosure, platitudes about helping the mortgage market don’t make anyone feel better. The good news is that there might be movement to prevent further foreclosure, with the help of government programs. Unfortunately, that sort of thing costs money (like the tax rebate) and eventually we the taxpayers will have to settle the debt — with interest.
Even though he didn’t mention recession (and today’s initial GDP reading is better than expected), he did mention the economic slowdown. And, really, that should be where you take your cue. Things are likely to be a bit rocky for the economy, and that means that you should probably plan your personal finances accordingly: Pay down what debt you can, build some savings and cut unnecessary expenditures.
The good news? Another Fed rate cut is expected today. And that means that if you have credit card debt or home equity loan debt your interest charges should fall.