It's been more than two years since I decided that the American economy was in big trouble and liquidated all my investments. That call turned out to be good. I've got to say though that since then, much of what I thought would happen has not. Investments that I thought would pay off, have not and I'm poorer for it. I've also lost about 50% of the equity in my home.
I thought that a lot more jobs would have been lost. I thought that a lot more corporations would have gone under. I thought the combination of decreasing tax revenue, coupled with the huge deficits the government would have to run would cause massive inflation. That has not been the case. The equities markets have not gone down as much as I thought they would and we are in the midst of a steady market recovery. Economists in the government and outside of it, maintain that the economy is in a sustainable recovery. I don't see how that can be.
Would some of you out there please tell me what you think of the situation? Recovery? Yes? No? Are things getting better or worse? Is real estate a good deal now? Are you investing your money and if so, what in and why? If you're not investing, what are you waiting for and how are you sheltering whatever funds you have left?
How is your job situation? Are you worried about layoffs? Have you lost a job? Are you making less than you were last year? How about others in your family and circle of friends? Are you making ends meet or going deeper in debt?
I'd really like to know.
4 comments:
please tell me what you think of the situation? Recovery? Yes? No? Are things getting better or worse? Is real estate a good deal now? Are you investing your money and if so, what in and why? If you're not investing, what are you waiting for and how are you sheltering whatever funds you have left?
First off, I think our economy has been spun so much by the media that we're all thinking it sucks. From my observations, it's doing fine. It took a tumble but it will get better, but NO CREDIT to the anointed in chief because he's trying to make it worse.
Things are doing ok in real estate. It is and always shall be a great investment.
I invest in a few companies over in Israel because look at the quality that comes frm that country.
I too lost a bit of money in the stock market, but it's coming back.
I think the economy is a mixed bag. If you're living where there was a bubble, you're probably hurting. If you live in a place that's been bypassed by the real estate boom, you're probably not that bad off.
Definitely, the state of the economy is being spun; there's tons of cash waiting to go to the 'weakest' businesses in the form of stimulus money, etc.
One has to view the stock market with a long term eye. The big boys will always come back to it sooner or later, then us little fish can follow in their wake.
You guys are all fairly optimistic. That's good.
I don't think the World is going to end but I'm not so sure the worst is over. The World economy has a way to ramp down yet. The American dollar is in for a beating. America is a resilient nation but we still have to reach an equal playing field with less developed nations. I think the next several years will be rough.
It's a good time to be rich and have money in several types of hedge investments. None of us are or do. In the end, there is nothing the Government or any other organization can do to lessen the pain. Levels of consumption and thus living standards will decrease. It will be a lot worse other places. There, some people won't eat.
This same thing happened here in the late sixties and seventies. A lot of our industries shut down and the work went over seas. The real economy contracted. Reagan solved the problem by printing money. Government spending and borrowing became the real engines of economic growth. We've been doing that ever since. Now we'll begin to pay the price and have to address the real problems.
Thanks for your opinions.
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