Thursday, October 9, 2008

How I Learned to Stop Worrying and Love The Depression

Today the Dow lost another 7% in value, the biggest percentage drop since the crash of '87.

The news is that the Fed, the government, will be taking ownership stakes in failing banks. Rest in peace, Capitalism. I was taught that when a government takes over a business, or in this case, a bank, that government is going against the ideals of Capitalism. Sure, the US Government is trying to do something, but this process, even though I disagree with it, would take weeks. We do not have weeks. Once the credit market REALLY freezes up, we'll all be screwed. To elaborate, no more credit cards. You either have cash, or you can go stand in the breadline.

My advice:

- Keep your money in the bank if it totals to less than $100,000. If it does, spread your money around. That is, put $10,000 in one bank, put $10,000 in another bank, etc.

- If you've been thinking of investing in the stock market: I can't say you shouldn't, but I wouldn't. Talk to a professional broker first.

- The above applies if you're already in the market.

- Pay off your credit cards NOW. You need cash, not a debt.

- If you have a job, hold onto it for dear life. If you don't, like me, it's going to be getting harder and harder to find one in the coming months unless the market corrects itself.

- Don't panic. Seriously, don't. Unless all your money is in stock...

I think this is no where near the end. We're in a recession. Fear for the worst, it's the equivalent of not getting your hopes up.

Hold on, for it will be a bumpy ride.

There sure are a lot of people searching the phrase "fat fuck" on Google lately... I wonder why...Reblog this post [with Zemanta]

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