“Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.”
– Lau Tzu
Okay, okay, I know the sky isn’t falling, but try telling these folks! Reading the financial media today about how we’re going into the next “Great Depression” could cause someone to go into their own depression or at least, experience a ton of stress. Everywhere you turn, there seems to be nothing but bad news.
Here’s just a small sample of what the media is saying:
Down $16 billion – has the wise sage himself, Warren Buffett lost the Midas touch? Maybe he needs to polish up his resume and investigate ways to make extra money. (Ha!) In reality, Buffet is loving every minute of it. When he values a business at $35 per share and can buy it at $20 per share, he’s excited. If it drops to $10 per share, he doesn’t fret about it. He knows what the business is worth and if it was a bargain at $20, it’s even more so at $10.
Bloomberg News – “I ask not what my country can do for me, but for what my country can lend to me.” – Michael Lewis. Sad but true. We’ve become a nation of moochers because … who really expects any of the bailout money to be paid back?
Can you spot the bankruptcy attorney in this picture?
The number of personal bankruptcy filings jumped nearly 8 percent in October from September. From the article: ” … consumers have been finding it more difficult, and in many cases impossible, to use credit cards, refinance their home mortgages or fall back on their home equity lines to get them through a rough period.” Has no one learned anything? Debt doesn’t get you out of debt! Does no one use a savings account anymore?
Repeat: Debt doesn’t get you out of debt!
Airlines report declines in global business travel. With the increased cost of travel and the decreased cost of technology that can link people around the world in video conferences, now might be a good time to move your investments away from the airlines.
What’s another $600 million down the drain? And we want to allow bureaucrats to have even more power and more money?
Maybe the best solution is to offer a car loan deduction to US taxpayers. I don’t know about you, but I’ll willingly take any tax deduction that comes down the pike! I’m surprised there hasn’t been talk about removing the mortgage deduction.
Could it really be that bad? According to some, total job losses top 939,000! That’s a 61% increase. With so many more people becoming unemployed, it could drive down the cost of labor. If you plan to ask for a raise, you better be careful!
Things aren’t even looking too good at Ebay either.
Should Uncle Sam be your personal Sugar Daddy? Once again we have a misalignment of incentives and the law of unintended consequences rears it’s ugly head.
Life insurers are buying up small banks so they can be eligible for bailout money. This is the law of unintended consequences at work! Always remember: what gets rewarded is what gets done.
Before too long we will all be eating at McDonald’s.
[tags]apocalypse, financial bailout, economic uncertainty, bailout, banks, business, credit, debt, financial, money, passion, savings[/tags]