You’ve probably heard some of the issues with the proposed rebates by now. Most significant to me is the reality that the intended positive impact on the economy may not happen. Even if the people targeted for the rebates spend all of the money there is a strong possibility that the expenditures will be largely on foreign made products. There certainly will be some positives for the sectors of the economy related to the delivery of the final product to you, but it will certainly add to the demise of the manufacturing base and increase the trade deficit.
I personally recommend that people pay down credit card debt and save a portion of the money. You can’t get a better return on your money than paying off these debts of over consumption. That’s in fact what it is….over consumption. We have been coerced and encouraged to over consume via the credit vehicle which has come to include the ransoming of our homes to get more stuff. You can take steps now to change this pattern forever. We’ll talk more as I hear your views.