Price of Food

I know I'm a bit behind the curve here, and I also know that there are others who are in much more dire straights than I am, but today the price of groceries really hit me hard. I spent 150, after 'saving' about 25 by not buying almost anything that wasn't on sale, and I didn't splurge or buy a bunch of stupid stuff.

A gallon of milk was almost 5 dollars, eggs were just as bad. Juice was five bucks for a quart or whatever it was. I don't cook much so there were frozen foods involved and my diet coke addiction got a bit pricey, but I didn't buy any alcohol, ice cream or chips. I got one chicken breast and one lb of hamburger. My junk food consists of bagels, my extravagances beyond the diet coke are the weight watchers frozen dinners. I can't imagine buying groceries for a family of four, let alone bigger.

Gas prices are insane, which is what the food prices are being attributed to, and I don't really go anywhere and it effects even me. I saw 4.05 for Premium in Bakersfield this weekend. Yes that is a tourist trap but it's the first time I've seen it break that four dollar threshold. The only plus lately is that my home equity loan's interest rate is dropping dramatically. Unfortunately my student loan is in a fixed rate a full two points above the home equity loan.

Home prices are dropping and gas prices are rising. I understand the whole supply and demand concept and what a bubble is and what happens when it breaks, consumer confidence oh and that little war driving up prices, but knowing these things intellectually and actually seeing the results are two different things.

What happens when wages drop and yet the price of a gallon of milk is still five dollars? I don't have children depending on me, I have resources the 'average' person doesn't have and it's kind of freaking me out, what happens to that family that can't afford to feed their kids and drive to work and pay the heating bill all at the same time?

I read an article today that basically talked about how mortgage companies are just abandoning foreclosed houses to avoid paying the taxes on these empty houses as they can't sell them. This is causing whole neighborhoods with scores of empty houses where crime and drugs just move in further lowering housing prices and causing a viscous cycle.

Honestly I don't know what to do, I don't have very much sympathy for people who got 'teaser' rate loans counted on equity to bail them out. They bought homes they couldn't afford and are now paying the price, but that price is effecting the whole country. There are people who were duped, lied to and taken advantage of, and those people deserve help a hell of a lot more than some bank does, and honestly how do we tell the two apart? How do we know if this person bought more than they could afford banking on equity to pay it off later and how many people thought they were getting this amazing deal and could live in a home they never thought they could afford.

It's hard to say no when the 'American Dream' is dangled in front of you especially when there is a fast talking banker saying 'oh don't worry the rates won't REALLY go up, just sign here!' Those people I do feel sorry for and this administration is just watching it happen.