America's Economic Mood

http://finance.yahoo.com/news/Nations-economic-mood-darkens-apf-14173244.html

So, what gets us to start pulling out of this. We won't be able to spend our way out of this one given how leveraged most Americans are and how tight credit has become.

After the Great Depression, many people forever changed how they handled money. Will we see the same thing with this downturn or will it be business as usual when the credit markets open back up? I know my wife and I have said never again. We are debt free and won't go back but I wonder if other Americans feel that way?

 

I think many Americans will feel that way. I know I have lost all trust in our economy and will never become as complacent again.

It isn't that I had that much debt, it's that I was looking forward with pleasure to retiring on the money I had saved over the years. Now, it will be much longer until that day.

 

Yeah, I think the second paragraph is the saddest part but I will say that in the past, the market has often recovered quickly when we've had big downturns. For example, the Dow adjusted close price on 9/10/01 was 9605.51. It opened again on 9/17/01 after 9/11 and dropped like an absolute rock down to 8920.70. But, by November 9th, the adjusted close was back to 9608.00. Little more than 50 days to recover.

Now, this is obviously a more substantial drop and we add in the government unprecedented intervention in the markets and who knows how long it will take to recover but I really do think that once we get this toxic stuff out of our economy, it will start to go up quickly.

 

I never put a dime in the stock market. Now you see why.

 

Where did you put it? Business or bank accounts etc??

 

Uncle Sam

 

I keep some in those accounts but the bulk is in cash that is kept in a safe place. I'm not looking to get rich off my money but I do aim to keep what I make. Money "on paper" is just that.

 

I wish I had that option but with two kids and college coming up I don't have that luxury. I am starting to consider other options in addition to the market though. Heading down to South America at the end of the month and thinking of investing in a couple of businesses. Things are booming down there right now.

 

Money IS paper. And if it doesn't grow it shrinks through inflation. Buy treasury bonds. They are backed by F-22 hornets, spy satellites, and a nuclear arsenal.

 

I'll risk the inflation. I like no one knowing how much I have. Anything you have showing can be taken away in variety of ways.