The Truth of Credit

OK, well maybe I lied I can’t help it.

If you watch the news, it’s always ”How bad is the economy?”

When at work, it’s always ”How bad is the economy?”

When you read the paper, it’s always ”How bad is the economy?”

Go to your in-laws and it’s ”How bad is the economy?”

Economy, Economy and Economy!!!!!

With all this crap going on I bet the Jim Jones’ and David Koresh’s of the world are in a bull market. Unfortunately, this downturn was unavoidable and I realize this brings no comfort to those people losing thousands in the market. I am confident that most financially savvy people knew this could happen, perhaps just not to this extent. My biggest fear is for the people who tucked all their money in 401(k)s and expected that money to be there in the end; they are the people that will truly be hurt from this downturn.

Here is what I learned?

“Learned” is past tense, so perhaps reinforced is a better word.

1. No one cares about your money more than you do.
2. No matter what the federal government tries to do (i.e. interest rate cuts, bailouts…etc), there are no quick fixes.
3. Good luck trying to reach your broker when things are bad.
4. I need to learn how to “short” stocks.
5. When “5 Million Illegals have Mortgages” that’s not a good sign.

What to look for?

Obviously, no one knows how deep this hole will go. However, some great fortunes were made during the Great Depression and other so-called recessions. The Rockefeller’s and Kennedy’s of the world made huge wealth during these times and the people with money will certainly be much richer in 5 years. There are many banks and companies that will fall but the truly strong ones will thrive. Both presidential candidates will promise the world but we all have to remember that Congress must follow the plan too. Be warned, in a few years the baby boomers will be 70 years old and will be forced to move money out of their 401(k)s and the market. This needs to be addressed and quickly.