economy - econ oh me

I shouldn't be talking since I started out at Georgetown as an international econ major and quickly changed gears when hit with a depressing C in macroenconomics. Micro makes sense - macro makes none. It is unsettling to know that the engines that drive our economy are about theories and not anything much more. I keep looking at the whole bailout situation and I must say - I don't get it. I feel like so much of what we are experiencing is the results of living off credit - either in small business, big business or individual loans. I do have a thing against debt. I was very much into it when I was young and clawed hard to get out of it. I ended up back in it not long ago when I adopted my daughter while trying to finish a renovation and I haven't been too happy to see the bills since. But I have worked steadily to put it behind me again and I see the light at the end of the tunnel. I think that the notion that we can spend what we don't have creates a whole host of problems. I understand that lots of business works like this - I pay for my goods with my credit and get the money from the sale to pay it off meanwhile making payroll etc. What I don't understand is why am I paying this way with what appears to be a 1 month or so cushion against bad times. This means I can't really afford to buy my goods unless someone is definitely buying them. I am sure there are profit maximizing reasons why this may be so. But wouldn't I be a better business person if I could pay for my goods and expenses for 3-5 months from a reserve I had saved over time. Obviously it never is a perfect world and I get it that things are tough but when did we stop valuing having money and instead value having a credit score that merits a loan? OK - I am certain this is a rant that needs an end so here it is. I recommend the book that saved me initially from a debt riddled life "How to Get Out of Debt, Stay Out of Debt, and Live Prosperously" by Jerrold Mundis (sp?). It may not work for the Wall Street world but it is common sense action for mine.

Ta ta.
Brent