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I'm only 30 and have been investing since I was 18. In 1998, if someone told me that the 30-yr Treasury would only yield 3%, I would have had an "oh crap moment," then assume that World War III broke out and the world was in peril....that's my honest opinion if you asked an 18 year version of me. However, as bad as the economy is, I don't think we're nearly as bad as Europe. I don't have the guts to short the Euro, but I am planning to take a vacation there in the next 24 months...I'm sure my dollar will go a lot farther then versus now.
As an inherent saver, it's pathetic that my 1.00% yield savings account once earned 7.15%. On the other hand, I'm looking to buy a house soon and am looking forward to utilizing the record low borrowing rates. However, I would much rather pay less money for a house at a higher interest rate compared to paying more for a house at a lower interest rate. A high interest rate gives the borrower an incentive to save and pay off the balance early. A low interest rate gives virtually zero motivation to save...and that's what pains us all in this economy.
I'm only 30 and have been investing since I was 18. In 1998, if someone told me that the 30-yr Treasury would only yield 3%, I would have had an "oh crap moment," then assume that World War III broke out and the world was in peril....that's my honest opinion if you asked an 18 year version of me. However, as bad as the economy is, I don't think we're nearly as bad as Europe. I don't have the guts to short the Euro, but I am planning to take a vacation there in the next 24 months...I'm sure my dollar will go a lot farther then versus now.
As an inherent saver, it's pathetic that my 1.00% yield savings account once earned 7.15%. On the other hand, I'm looking to buy a house soon and am looking forward to utilizing the record low borrowing rates. However, I would much rather pay less money for a house at a higher interest rate compared to paying more for a house at a lower interest rate. A high interest rate gives the borrower an incentive to save and pay off the balance early. A low interest rate gives virtually zero motivation to save...and that's what pains us all in this economy.
I disagree with you on the main reason why savings rates have fallen. For the past couple of generations, people and our culture want instant gratification. Cheap and easy access to credit over the years along w/using your home as an ATM hurt saving habits...
Now w/rampant unemployment and people fearful, they are hunkering down and not spending as much....pretty simple to me.
GM hasn't exactly been saved yet. its like greece really.maybe saved to save the saver only to fail another day. Rememebr this is Chryslers second bailout. Gm ran the same ads in the 70;s on beig anther car comapny after lossig out to the japanese;but like now became mostly a truck/SUV maker.
That's right. They were wiped out. They made a bad investment instead of doing something safe with their money. I've invested some money over the years in companies that have gone under. The difference is that when it happened--I acted like an adult--I accepted my losses as part of the risk of the game.
This is a perfect time for the "Ignore" category, and I hope those who find my posts reason for a self-congratulatory rant on their own superiority would do the same. Some conversations are absolutely pointless, and those involving game players in one of the most corrupt and non-productive sectors in any modern economy would fall into that category.
I post so that others don't make the mistakes I made, and get caught in the traps I fell into. And the lesson I learned from GM was that there are NO safe investments in a corrupt industry, with a government that rewards Special Interests and totally ignores fairness. From now on, I'd recommend that EVERYONE (other than the game-players, who win by rigging the game), get out of the Stock Market entirely. First, it's being propped up by the Government and stimulus, but soon that flow of printed fiat currency will slow, and become worthless. Second, the Baby Boom, which fueled the market run-ups over decades, will soon start liquidating their stock holdings. Finally, the financial sector game players have reached such a level of corruption and manipulation that the "little guy" will ALWAYS lose, every step of the way. And the accounting and tax consequences will be so complex you might not even realize it.
Specifically, don't invest in even the most stable, profitable company in the world today (that's what GM was when my great-aunt bought it). Don't even bother trying to leave a small inheritance for future generations (unless it's physical gold or silver), because sooner or later your entire investment will be lost due to the corrupt scheming of Big Business making "special deals" to a few special interests, with the full support of Big Government.
Avoid playing the game that's rigged against you, and you can avoid future financial game players preaching to you that you made a "bad investment," and that by investing in the most stable, profitable company in the entire world, you weren't doing "something safe" with your money.
Frankly, when the inevitable collapse finally comes, my family and I will do just fine. I wish all the financial whiz-kids and investment bankers and stock brokers the best of luck; I'm sure there will be a HUGE demand for their services when the grocery stores have no food, armed gangs roam the streets, fiat currency is worthless, and the last government "safety net" checks bounced since it was bankrupt long before.
This is a perfect time for the "Ignore" category, and I hope those who find my posts reason for a self-congratulatory rant on their own superiority would do the same. Some conversations are absolutely pointless, and those involving game players in one of the most corrupt and non-productive sectors in any modern economy would fall into that category.
I post so that others don't make the mistakes I made, and get caught in the traps I fell into. And the lesson I learned from GM was that there are NO safe investments in a corrupt industry, with a government that rewards Special Interests and totally ignores fairness. From now on, I'd recommend that EVERYONE (other than the game-players, who win by rigging the game), get out of the Stock Market entirely. First, it's being propped up by the Government and stimulus, but soon that flow of printed fiat currency will slow, and become worthless. Second, the Baby Boom, which fueled the market run-ups over decades, will soon start liquidating their stock holdings. Finally, the financial sector game players have reached such a level of corruption and manipulation that the "little guy" will ALWAYS lose, every step of the way. And the accounting and tax consequences will be so complex you might not even realize it.
Specifically, don't invest in even the most stable, profitable company in the world today (that's what GM was when my great-aunt bought it). Don't even bother trying to leave a small inheritance for future generations (unless it's physical gold or silver), because sooner or later your entire investment will be lost due to the corrupt scheming of Big Business making "special deals" to a few special interests, with the full support of Big Government.
Avoid playing the game that's rigged against you, and you can avoid future financial game players preaching to you that you made a "bad investment," and that by investing in the most stable, profitable company in the entire world, you weren't doing "something safe" with your money.
Frankly, when the inevitable collapse finally comes, my family and I will do just fine. I wish all the financial whiz-kids and investment bankers and stock brokers the best of luck; I'm sure there will be a HUGE demand for their services when the grocery stores have no food, armed gangs roam the streets, fiat currency is worthless, and the last government "safety net" checks bounced since it was bankrupt long before.
One major problem w your response is you make no mention of diversifying. Holding a large chunck of retirment savings (ie putting all of your eggs in one basket) is not a good idea.
The stock market has benefitted me (aka the little guy) tremendously over the years. Making blanket statments does not help your credibility.
One major problem w your response is you make no mention of diversifying. Holding a large chunck of retirment savings (ie putting all of your eggs in one basket) is not a good idea.
The stock market has benefitted me (aka the little guy) tremendously over the years. Making blanket statments does not help your credibility.
The GM stock was inherited, and had nothing to do with my family's investments over the past 30 years--which were primarily in the stock market. It is merely an example of how NOTHING is safe in the stock market, due to game-playing at the highest levels.
I said get out of the stock market NOW--not that it would have been smart to avoid it for the last 30 years. Just like I would have warned to get out of the housing market BEFORE the crash, had I known the total disaster our banking system had gotten itself into.
So a "blanket statement" to get out of the housing market before the crash, would have meant the source was not credible?
Obviously, had you stayed out of the stock market entirely for the past 30 years, you would have been left behind. But when the market crashes, it ALL crashes. "Good" companies are NOT immune. They'll crash too. The stock market is high-stakes gambling, with "insiders" using inside knowledge to beat the inevitable flow of cash to the power-brokers. The "little guy" doesn't find out ANYTHING until it is too late for him to do anything.
My family has pulled out of the stock market 100%, and we would have DEFINITELY gotten out of the housing market before the crash if I had been following boards like this and had a "heads up" on what the banks were doing. Nobody has to follow advice, but I would have been eternally grateful of one of the many people who now claim to have "predicted" the housing collapse, had put their reasoning on some internet source that I had access to at the time.
wow, disagree w/your post on so many levels, but I'll just comment on a couple...
So, you honestly think its different this time? The total stock market is going to crash? If so, when exactly? What levels do you predict it will go down to??? This sort of sounds like the people who hid in bunkers and stocked up on food during the y2k scare.
Also, the housing crash doesn't affect me. Yes, my home has lost value, but a home is not a financial investment. Anyone who thinks it is is wrong.
buy 100k worth of beer,drink it and return the empty ones for the deposit.
call it a 401 keg plan.
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