In his State of the Union address on Tuesday, and at a separate announcement unveiling a federal budget proposal on Wednesday, President Obama acknowledged that government aid to banks for a financial crisis that “was not inevitable” remains very unpopular.
He also recognized that the availability of credit is essential to retain jobs in the country, and that more money might be necessary to bail banks out from their “bad decisions.”
President Obama announced his intent to clarify regulations for financial institutions, noting that Wall Street “traded in complex financial products without fully evaluating their risks.”
Whether or not you follow happenings on Wall Street or own shares of stock yourself, it is clear that personal financial responsibility is essential in order to stay afloat in any situation. Evaluating the risks of major financial decisions that you make–whether it be applying for a credit card, taking out a loan, or simply creating a budget for your everyday activities–is a step that you should take to ensure that you are living within your means.
One Comment
I’m not sure how increasing regulations and placing limits on credit is going to help at a time when the biggest problem is fear and lack of access to credit.