Do we really need more credit?

Are these bailout and economic plans really going to help us in the long run?

One thing that I don't understand is this push to get banks to offer more credit. This seems to be very counterproductive.

Isn't this a big part of the reason we are in this mess in the first place?

Too many people live way beyond their means. And, have leveraged their income by using credit. Now, it's time to pay the piper. And we're witnessing the results – increasing foreclosures and bankruptcies.

It seems that part of the solution would be to encourage people to return to the good old days of living by a budget.

We need to teach people to save or be patient when they can't afford something. Using credit and putting yourself in a deeper hole is not the answer.

I was reading an article today and Scott Brown, a chief economist at Raymond James & Associates in St. Petersburg, Florida said the following:

"One of the big problems we have is that there has been a lack of demand for debt. You have seen the market for securitized debt such as credit cards or student loans dry up completely"

Is he saying that debt is a commodity?

Let's be honest, people generally use credit to satisfy their wants. We want to buy things like the Playstation 3, the brand new car, or the big old house that we don't really need.

I plead guilty as well.

The downside to that thought process should be evident. We now have several people who were living the "American Dream" now living on the American streets.

But now that we are here, it would seem wise to learn from our past mistakes and start making wiser decisions. If not, "Main Street", will never be truly fixed.

We will continue on playing with monopoly money until the piper comes calling again.

Then what?

The Wizard has spoken.