You may prefer the term ‘rebirth’ to demise. Some die-hards may not see the Bear Stearns fire sale as a disruptive business event. Aimless debate is a luxury. Most of us are concerned with tightening belts to prepare for lean times ahead. You have to be an incurable optimist or Chinese to see a bright economic 2008.

What has changed? A fundamental development has been the valuation of securities. Banks have been negligent in reporting asset numbers on their balance sheets. Secondly, the basic value of repaying your debts has melted. It is OK to declare bankruptcy. The US Federal Reserve is willing to intervene in free market matters. Public funds are available as guarantees against executive perfidy.

Can you stop the march of socialism in a new Avatar? Let us assume for the moment that you cannot. Certainly, no Presidential candidate has said anything unequivocal on the issue. Do write and correct us if you disagree. An alternative is to assume that economic management has changed forever. What should you do?

Reduce the power of credit in your life. Pay back or refinance all credit card loans. Use plastic only to prevent theft of cash. Stash money in the bank within a day of every swipe of your card.

Make a savings plan. Analyze your recurring expenses. Use a Kaizen approach to take small but steady steps towards growing savings. Write to us if you want help with specifics.

Bottle up urges to buy. Sleep over every big ticket item that catches your fancy. Try and think of all the benefits of not going ahead with that purchase. Experiment with foregoing expenses that you take forgranted.

Pick up ridiculously cheap stocks. Think of them as bonds. Do not sell stock with inherent value until a new President is settled at the wheel. Stay with this web site if you want leads to such stocks.

Bush has buried the truly free market. You can still nurse capitalism in your private life.