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NeedToUseYou -> RE: What is your "plan" ? ~ ~ ! (12/18/2008 9:49:35 PM)
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quote:
ORIGINAL: bluepanda
On the subject of the original post, I've been mulling something over the last few days. I wouldn't go so far as to call it a plan yet, but I'm going to be giving it some thought in the coming weeks. Today's stock market hiccup notwithstanding, I expect stocks to be on a bullish trend for several weeks, maybe as long as a couple of months. By March, I expect the market to drop again, perhaps quite a bit. I'm thinking I may ride this rally for a couple more months, cash out most of my equities in February, and use it to buy into real estate. I really trust the stock market less and less with each passing week, but there are going to be some excellent values in real estate as the next round of defaults start rolling in.
I thought about that "real estate", but I'm no expert on it. However, if sales tax revenues fall, if kick backs from state and federal programs fall, essentially, if nearly all tax revenue sources fall, wouldn't the one place they'd turn to be raising property taxes? They already raise them all the time, and try to overvalue property.
So, I'm simply not sure if property as in land is the best option as they can tax the hell out of it, and probably would if shit hit the fan hard. Where else are they going to get more money from?
Anyway, my vote goes to buying things that offset everyday costs, or lower them, or buying stuff in advance one will eventually consume anyway.
Thus, why not buy a years worth of stuff that you will need no matter what, if you got extra money. If the economy recovers, you are out of nothing, if it tanks and you find yourself in a diminished situation, at least you don't have to spend money on that stuff.
Why not work on lowering your heating cooling and lighting costs, if nothing happens oh well, you saved money, even though you didn't need to save it. If shit hits the fan, well, a lot of people will be scraping and 50.00 off a power bill might keep the lights on.
Anyway, that's how I look at all this,
1. Stock up, on what you'd consume anyway.
2. Become more efficient.
3. Get some form of protection, you can always sell the gun if shit recovers, so who cares.
4. After 1 and 2, and 3 try to become more independent. Grow food if possible(gardening is fun potentially), if possible try switching to locally fueled heating system. If you got the cash, why not buy some solar panels.
Anyway, after that then I'd start thinking of real estate, stocks, etc....
The thing people aren't getting I think is that money if the dire predictions come to pass, and there is more than a small chance they could, IMO, is that whether you have a million or a 100 dollars you are broke. So, buying things that have real worth, is the way to go. Before gold silver or land(unless its going to be producing something, with universal value), the things that have value no matter what scenario, and scale with inflation, are food, and energy.
Now, right now we aren't going into an inflationary spiral, however that is just because the dollar has held up well, if it stops holding up, which many predict will happen, then these "money bombs" we are dropping, will lead to significant inflation, and the way it looks is plenty more "money bombs" are going to be required before the end is near. How much more can the system endure? We are already at 0.25 percent interest. LOL. The fed has completely tapped that power. Now, the only power left is the direct "money bomb". Yeah, yeah, the fed and treasury are to different things, whatever, they are the same thing effectively, they are writing the book together, and agree on strategy. Essentially one entity at this point. Bush vowed to save the financial sector, I don't recall him vowing to save you, and Obama has went along with Bush on everything so far. So, I'd expect the play book to be passed.
Better safe than sorry. I'd say.
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