Of course, we could change...

If you think the finance crisis in this country--or the world for that matter--is close to ending, think again...

Looking at the level of debt every investing entity has accumulated--from the federal government through states and municipals to corporations and individuals, we've finally reached that unsustainable position.

A tipping point. It's downhill from here.

Unless we do something different. We've got to wake up out of this debt fantasy.

Did we honestly think we could keep borrowing at those leveraged percentages?

If 40% of debt is an acceptable level for an individual to qualify for a fixed mortgage, when health care, food, fuel, insurance and numerous other basic costs are rising at an increasingly higher pace...how is the regular Joe going to sustain regular fixed mortgage payments that are at the top of his debt range at the getgo?

Let alone the credit card interest debt that increases with each passing month. Add in the future costs of rising tuition, clothing, medical care for children the average homeowner will pay over the next twenty years...

Are we that stupid to think we can get away with this? Where is the money going to come from--trees?

I guess it will just have to be printed, because it seems there is no end in sight to the borrowing (credit) policies everyone in this country seems to advocate.

What is wrong with living within your means?

First you have to determine your means. If you haven't realized a relatively stable income for a long time then you should not sign a mortgage document or any loan document for that matter.

Why can't everyone, including the governments and Wall Street follow the basic principles of finance?

Greed. Laziness. Stupidity.

How's this for Common Sense: You can't finance long-term debt with short-term income--you'll end up upside down.

Why don't we have financial education in our school systems?

If we don't educate our youth, they are going to repeat the same mistakes we have. That's if they get the chance.

PERSONAL FINANCE 101

There needs to be a public finance education campaign to teach people the basic principles of finance, beginning with...

1. Don't spend more than you have coming in.

2. Don't borrow long term if you don't have truly stable income with at least a few years' history.

3. If you don't have an emergency fund with at least 3-6 months of expenses saved, you should not sign any kind of debt instrument.

4. Pay yourself first--put a minimum of 10% of any income aside in a separate fund that is not to be considered emergency funds.

5. Stop using home equity to finance anything that does not improve the value of the home that can be recouped upon sale.

6. Reinvest dividends instead of spending them--the secret to the finance universe is the power of compound interest.

7. Don't assume others know more than you do. Do your homework.

8. Take a deep breath each hour and keep your head--don't let anyone talk you into anything. You're the one who's got to live with the consequences so take your own sweet time deciding on any financial decisions.

9. Gather as much information as you can about a subject, give yourself enough time to think about it, ask yourself how you feel about it, sleep on it, and then do what your gut tells you.

10. If you marry, make sure your intended shares the same finance policies and outlook as you do.

11. If you must marry, make sure you have done all the forgoing first (have a stable job, a home, money funds already for emergencies, purchases, retirement).

12. If you want kids--plan them. Don't bring kids into the world that you may not be able to provide for. Things are very iffy now and your kids deserve a bright future. If you don't have financial stability, you can't afford them. Do the right thing--use birth control.

13. Don't blame others for your bad decisions. If you didn't follow the above, it's your own fault. Accept it. Move on. Do it better next time. Learn from your mistakes. Tell others what you learned. Make the world a better place.

CORPORATE, GOVERNMENT FINANCE 101

There needs to be organizational finance policies in place to ensure staff and officials follow the basic principles of finance, beginning with...

1. Don't spend more than you have coming in.

2. Don't borrow long term if you don't have truly stable income with documented history.

3. If you don't have an emergency fund with at least a minimum predetermined amount of expenses saved--like a complete operating cycle, you should not sign any kind of debt instrument.

Yeah, that's right! You should be operating from a cash position, not a borrowing position for operational expenses. That way, if you run short and have to dip into your emergency fund, you need to change the way you are currently operating so you can replenish the fund--not borrow, which increases your operating expenses!

4. Pay yourself first--put a minimum of 10% of any income aside in a separate fund that is not to be considered emergency funds; this is to build the business stability and ensure good ratings and reputation.

5. Stop using loans to finance anything that does not improve the value of the business that can be recouped upon sale--certifiably.

6. Reinvest dividends instead of spending them--the secret to the finance universe is the power of compound interest.

7. Don't assume others know more than you do. Do your homework. That goes for everyone--from the janitor to the board member.

8. Take a deep breath each hour and keep your head--don't let anyone talk you into anything. You're the one who's got to live with the consequences so take your own sweet time deciding on any financial decisions. This applies to every level of staff and officials. Think before acting people!

9. Gather as much information as you can about a subject, give yourself enough time to think about it, ask yourself how you feel about it, sleep on it, and then do what your gut tells you. If the decision is one to be made by a committee or group, make sure there is true documented consensus. Otherwise you may not have a group later.

10. If you merge, make sure your intended shares the same finance policies and outlook as you do.

11. If you must merge, make sure you have done all the forgoing first (have stable income, an adequate operating facility, money funds already for emergencies, purchases, employees' retirement).

12. If you want to start other businesses--plan them. Don't start more than you can sustain. Things are very iffy now and your employees deserve a bright future. If you don't have financial stability, you can't afford to branch out and take on more risk. Do the right thing--use birth control.

13. Don't blame others for your bad decisions. If you didn't follow the above, it's your own fault. Accept it. Move on. Do it better next time. Learn from your mistakes. Tell others what you learned. Make the world a better place.

Pretty similar, right?

So why can't people, firms, governments, do these things?

The answer is they can, they have, and they should. We just have to encourage this kind of behavior. Who's going to lead by example?

We're all to blame for buying into the debt fantasy. But it's time to end it and start being responsible with our money.

It's time to grow up!