“The Fed has kept short-term interest rates near zero since December 2008 and has bought more than $2 trillion in long-term securities to push borrowing costs down further and boost recovery from the 2007-2009 recession.”  (Fed unlikely to extend QE2, officials say by Ann Saphir (Reuters – 03/25/11)

The Federal Reserve was able to buy $2 trillion in long-term securities.  This is amazing consider that GDP is right around $14 trillion (Google) and the 2010 US Federal Government is $2 trillion (wikipedia.org).  Where does the Federal Reserve get that $2 trillion from?  (From what I’ve read, it seems it just gets it out of thin air.) The ability to pump this amount of money into the economy is just extraordinary. 

With just a bit of luck $1 could have become $312 Million in last Friday’s Mega Millions lottery.  Think of it, just pick 6 numbers correctly and all of your financial needs could be met, or could they?

It is my belief that giving people in financial distress a large sum of money actually makes the problem worse.  The distress financial situation is often caused by not matching expectations and expenditures with means and ability to earn.  Many of these situations start out slowly of earning just a little less than one spends, and then as the amount of difference (debt) accumulates, more desperate action is required that exasperates the condition.

A recent news article points to a related trend Why Lottery Winners Go Bankrupt by Jack Hough (Smart Money 3/28/11). 

My belief is that if you want to have a happy life, learn how to live within your means.  And constantly push yourself to increase your means.