If America's New Years Resolution is not to repeat the same mistakes made in 2008, it should be.

Among the many faults this year are: Immense job loss, plummeting stocks, frozen credit markets, foreclosures, and the icing on the cake is the alleged multibillion dollar fraud on Wall Street.   Last year was a year of learning, let us hope this year will be a year of applying those lessons learned.

According to the Boston Globe since January 20 million people have lost their jobs.   Of those 600 thousand were unable to find new ones.   It can be said with some degree of certainty that most of these people weren’t expecting to be fired and there for, most likely did not have much saved for a rainy day.   The point made here is the art of emergency reserve.   Many financial planners recommend savings for such an occasion to last for as long as a year or at least six months.  

Investors learned how far they were willing to put their on neck out on the line.   The uneasiness among the American workforce was the true measure of what tolerance is.

Larry Swedroe investment advisor in Clayton MO. recommends that if you find yourself taking too much risk, you should try brain storming while incorporating your own goals and risk tolerance.   “Life is too short not to enjoy it.   If you can’t sleep at night, you are taking too much risk,” said Swedroe.

Homeowners discovered the fault in taking on more debt than they could handle.   Prisoners to credit card bills also realized the simplicity of not buying something unless you have budgeted for it.  

New York money manager Bernard Madoff learned first hand that with risk comes consequence sometimes good, sometimes bad.  

Harold Evensky a certified financial planner in Coral Gables, Fla. said “If we knew how to mint money in the market without risk we’d simply be enjoying great wines on the decks of our yachts.   Investors will get returns appropriate to the risk they are willing to take.”

Last year was filled with regrets and complications and the way we handled it as nation was unsatisfactory.   Instead of taking responsibility for our part in the recession we blamed everyone else who was willing to accept our remarks.   The lessons that the Americans have learned is to take nothing for granted and always be prepared because sooner or later disaster will strike.