2008 turned out to be a turbulent year. It was a year marked by many new buzz words. Change and bailout made that list. But if there is one word that was overlooked that best describes 2008, I would have to pick the word low. Not a very profound word, but it seems to me, a very appropriate word. From weather temperatures falling to all-time lows around the country, to stock markets taking the lowest dive since the Great Depression, to interest rates falling to a new record low, to housing prices declining and continuing to fall, to the sitting president’s approval rating. Well, you get the picture. It seems like nothing was left untouched by low. When we celebrated the count down to 2008, little did we expect that it would be a year of this bottomless, un-ending ride downhill. We partied like it was 2008, made resolutions we knew we wouldn’t keep, and cheered in that new year with the usual innocent glee and optimism that welcomes each new year, totally unaware of what was in store for us as the year progressed. Read more »
Well, it’s official. According to MSNBC the U.S. economy began the fall into recession back in December of 2007, just about a year ago. The National Bureau of Economic Research panel, made up of academic economists, finally declared what most private economists, lawmakers, business people and common everyday folks already knew. At least, I have know this for quite some time and that’s why it boggled my mind why all of a sudden it made the news. Anyone who has been the least bit attentive is aware that unemployment has been on the rise and the stock market has been on the decline, major financial institutions are crumbling under the weight of bad debt and, in my mind, the biggest indicators of all: cars aren’t selling and people are using their credit cards less. Despite the fact that President Bush is not ready to acknowledge that this isn’t a full-blown recession yet, Treasury Secretary, Henry Paulson finally agreed and actually used the “R” word Monday. This is really an omen that things are bad. Read more »
The big three automakers went to the hill this past week to ask Congress for a bridge loan of twenty-five billion dollars. Believing that they could not be denied, these CEOs were ill-prepared to face the inquistion of lawmakers and too arrogant to be shamed by Congressional remarks and comments to show humility. LA Times reported that the CEOs of Chrysler, GM and Ford ran into a wall of skepticism from a broad cross-section of lawmakers concerned about the environment, unions and Japanese auto plants in their home states; all topics that the Big Three seemed to dismissively sidestep with a fancy dance. As I watched this story unfold over the last few days on television, I couldn’t help but wonder, what were they thinking? These are very highly-paid, highly compensated CEOs of the three major American automakers. These are men who are responsible for making dynamic decisions that affect not just their employees, but support businesses, educators, home builders, politics, environment and the list goes on. The tentacles of the auto industry are many and deep and they are embedded in just about everything that is American. Yet, these Autogods were totally clueless. In fact, I see a whole new genre of dumb jokes that has nothing to do with blondes, on the horizon. Why did they fly in on their private jets and face Congress without a new and improved game plan? Read more »
Financing the Retirement Dream
Just when I thought my nest egg was about ready to feather my retirement, the bottom fell out of the economy and within days, what was once egg is now just shell. I believe that, despite this recent set back, my investments will again grow and prosper. I know that I must wait patiently and continue to invest, and I also know that there are times that I need to rant, re-evaluate and look for wisdom. This Section is dedicated to just such rantings and moments of wisdom. I hope that you might find something here that you can identify with or offers a moment of solace in these difficult times.
To add a little more fuel to the already flaming meltdown, I am now hearing rumors around the Internet about a covert monetary coalition between the U.SA., Canada and Mexico that will virtually render all of our hard earned but depleted savings and investments to pennies on the dollar and that these three nations would be trading in a new currency called the Amero. Here is a little info about it from Wikipedia. It was Polish economist, Mateusz Machaj who pointed out that the Amero theory is a Canadian pipe dream that is going nowhere, and that the images you see all over the web are actually the designs of a private artist named Daniel Carr. I think back to when European nations banded together to create a common currency. According to my memory, the reasoning behind the Euro was that these countries were small and people could conceivably travel between them in a short matter of time making money conversion a headache, especially for tourists. It took years of working out the details and votes by the people of those countries to make it happen. During this time, there was much talk on the news and in fact, before it was common knowledge to the masses, one of the soaps (I think it was General Hospital or Guiding Light) picked it up. Read more »
We are just one week away from electing a new president. It could be John McCain or it could be Barack Obama. No matter who wins, there will be people who are going to be angry or worried. These are difficult times and our next leader is going to need the support of all Americans if we are to survive this largest ordeal and come out on top. according to the Seattle Times. our next president will be facing a plethora of problems, among which are the pressing issues of global warming, energy addiction and a tanked economy. According to Yahoo News! many people will be loosing jobs and the housing market hasn’t hit bottom yet and probably won’t for at least two more years. Who really knows what will happen in the financial market? I hope that once this election is over, we set aside our differences and work together to focus on what needs to be done. After all, we the people, came from immigrant stock and we know how to roll up our sleeves and get the dirty work done. And that’s what this country needs right now - people who are going to work to get us back on track. That means farmers and business people, mothers and educators, laborers and scientists, engineers and techies, and all others; we all need to set aside our differences and think of the common good. What are you going to do to help turn this country around?
I just read There is a Silver Lining on the Newsweek website and it has some interesting insight. To paraphrase, this article says that amid all the difficulties and hardships we are about to undergo, there is one silver lining. This crisis has - dramatically, vengefully - forced the United States to confront the bad habits it has developed over the past few decades. If we can kick those habits, today’s pain will translate into gains in the long run. We, not only as a nation, but also as individuals have depended upon easy money to support our spending frenzy. I realize that I too, am part of the problem. I have purchased things on a whim that I did not need, spending money unwisely instead of saving for a rainy day. Sitting idle in my closet are new shoes that have never been worn, sweaters that still have the sales tag attached and dresses that I will never wear. In my bathroom are a variety of hair products that have been used once or twice and then shoved under the sink and beauty products that promised miracles but didn’t deliver. I have enough blankets and towels to outfit a mansion but I only have one bedroom and one bathroom. There are so many things that I spend money on needlessly without thinking. Maybe this is my wake-up call. Read more »
On AC360, Suze Orman (Suze Orman on your fears) said that fear and panic was counter-productive when it came to the current market situation. It’s not fear and panic that I feel. Almost all of my working life, I have been investing with the idea of retiring at 62 (2 years from now). Then George Bush took office, the Republicans were in charge of Congress and I saw very slow growth in my investments and I said, “No problem, I can work until I am 65. After all, I like my job and it keeps me on my toes.” Now, I see myself working until I am 70+ and the idea makes me furious. I feel violated by the financial corporation’s irresponsibility. This is the same violation as I thing I would feel if someone broke into my house and stole 30% of everything I own. It’s not that I won’t survive. I’m not afraid of that. After all, I have my health and as I said, I have a great job. It’s just that the decisions about my future are no longer mine to make. Like most victims, I feel this need to be vindicated and I don’t believe this will happen any time soon. What about it? Do you see any of these executives being prosecuted or held accountable in anyway? I know that some of them will lose their jobs, but thanks to their golden parachutes, I doubt if they will be put out on the streets. More likely, they will take extended vacations on tropical islands and wait out the storm.
Is there anyone out there that really understands what is going on in the financial world? How come our current administration insisted for the past year that our economy was sound and that it would survive the sub-prime mortgage crisis and then turn around in a panic and, just last week, ask Congress for $700 billion dollars. This is a government intervention unprecedented since the Great Depression. Shouldn’t the public have had some warning that a meltdown was inevitable? Shouldn’t the taxpayers have been prepared for the fact that they would eventually be responsible for picking up the pieces instead of facing a demand (on a Monday morning, no less) that the Fed needed this money and they needed it now or else? This all seems so surreal that I can’t quite grasp the immediacy of the bailout. What does this say about the collective intelligence of corporate and political America? No wonder the American public is not behind this. It is time for Congress to support their constituents and look at not revising this bailout, but throwing it back into Wall Street’s hands - after all, isn’t that why they pay these guys the big bucks?. If our government has $700 billion dollars to just give away then let’s jump start the economy by giving it to the taxpayers.