It seems to me that massive consumer debt has been a major factor in our current financial crisis. I recently read in the Wall Street Journal two more disturbing pieces of information.

First I read that the National Exchange for Health Insurance is insufficiently funded. This is the exchange that guarantees insurance to people who are uninsurable and have no insurance. Despite the fact that the premiums are high, more government subsidies will be necessary to keep the plan alive until 2014 when the new law goes into effect and everyone has to be covered on richer plans.

Secondly in an article dated July 9, 2010, it is noted that the Office of Budget Management has not issued their report on Medicare and Social Security. This report is always published by May. The worry is that the report will show that the Social Security fund is operating in a deficit and is being delayed to temper that news. It was earlier reported that a deficit would start in 2015 depleting the fund totally by 2037. Now there is fear that the deficit will start earlier and total fund depletion will arrive sooner.

My daddy said “Spend less than you make.” It seems that neither the consumers nor the government is capable of such discipline. There is an old saying about lemmings running to the sea that comes to my mind.

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