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IF not the Stock Market? Then WHAT? There is no such thing as "saving" anymore. You get next to 0% interest on Savings. Smart people "invest" and grow their money.
Smart people understand ALL investments carry risk.
I readjusted all investments back in May. Barely a blip on my screen. Another huge buy opportunity.
Probably won't be as good as March2009 or as a sell when silver hit 48. Be interesting to see what the precious metal markets do in the next few months.
why not? you idiots blamed bush for everything for 8 years.
If he is in office...then its his fault. That is the rule you liberal idiots play by. Deal with it!
Quote:
Originally Posted by WestCobb
Of course this is Obama's fault. That much is certain. I just don't why yet. I'm sure I'll get the specifics as soon as I listen to Fox.
Huh? In that thread I argue that a good economy under Obama was bad news for Republicans. Likewise, I'm sure many conservatives are delighted at this crash. They have all of their money tied up in guns, gold and stuffed in their mattresses anyways.
I've been adjusting for the past 3 months or so. Actually sold a big chunk off Thursday before the first major drop. Though I wish I had sold off even more, I'm happy with the adjustments I have made.
Once the dust settles, there should be some really good deals out there for reinvestment.
No one is around this week and people are worried about China manipulating its currency and the fed is almost certainly going to raise interest rates soon. This market crash is temporary.
They can't. Here's why...
Corporations and governments with "good credit" can borrow at 1%. They can have $10 million in outstanding debt, and many corporations and governments have that or more.
What happens when the rate of interest goes to 2% for those with "good credit," a mere 1% rise?
As an example, the interest payment required to keep an outstanding $10 million debt now doubles to $200,000. If the debtor can't come up with the extra $100,000, the only way to reduce their carrying costs, other than bankruptcy, is to pay down $5 million of that $10 million debt.
But they don't have that $5 million; it's already been spent. That was, after all, the entire point of borrowing the $10 million.
This is the trap The Federal Reserve is in, and from the size of it (much larger than the $10 million example I gave) you should easily be able to see the problem: Even a modest increase in interest rates, for example just a 1% increase, will drive "good credit" borrowing costs in the short term to roughly 2% or so, which will instantly double the interest dueor force a paydown of half of the outstanding debt.
The latter is impossible because the money has already been spent, and therefore the former is also impossible. It's a TRAP.
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