Thursday, October 9, 2008

"Believe nothing you hear..and half of what you see" PART 1 ...it's called "Survival"

As a child...one of the thing's that my dad told me that stood out the most for me over the years .. especially being on my own since the age of 13/ 14 and surviving has been when he told me..."Son .. believe nothing you hear in this world .. and only half of what you see". Remembering this has saved my ass more then once. And the current condition as far as this election .. and this economical crisis ... this is really good advice. Now some may say ... "Where's the crisis?" or that the fundamental's are strong or the other fancy cliche's they have to spout. This is rubbish ... DO NOT BUY IT. These people are so far out of touch with "reality" ... all they see is their little world.

Yes ... the fundamental's of the economic machine(those who run it)are strong ... like I said ... the big boy's and gal's will never see a day in the "poor house" ... bank on it. So therefore ... there is NO reason to worry about them at all .. let them worry about themselves. We already babysit these vultures with our taxes and finances. The one thing we never look at ... is that they need us ... we DO NOT need them.We are not in a recession? Again ... not technically ... but what do you need to make you realize the impact of this instability before it hit's home? Are you waiting for a "sound bite" to make it official? Like from the "Maverick" or "Wall St." or perhaps "Bush"? Listening to them will clearly show you that they are running around like a chicken decapitated ... the last thing you want to do is be a dog chasing it's own tail behind these weak nitwit's.

The "Maverick" himself is showing extreme desperation as of after this last debate. This shows you right there to "avoid" him ... this guy is flip flopping so fast on everything that the media cant even keep up with all the flip flop's that he's shelling out. They got this poor gal from Alaska(Palin) trying to push it that Obama is really a terrorist even. McCain is using proposal's now of even Sen.Clinton, even proposing things like a new $300 billion bail out now for those who fell behind on their mortgages .. and now some are furious over it because those who have paid without missing a beat will get nothing as far as help .. he is also using former proposal's of his opponent Obama .. the one he say's know's nothing, seen nothing, done nothing, and is nothing ... right there show's you the level of desperation, and show's that the Maverick himself has NOTHING original to even come up with ... and is well ... becoming ... nothing himself ... unless he can really find something that will sell. His tax plan is a failure ... his military strategy for withdrawal from Iraq is a failure ... his new proposal's are also a failure ... and the entire desperate republican party is a "losing" team. Obama is just word's as well .... however ... his word's are more positive as far as direction .. and vesting in the people's interest, his administration would be far better as far as cabinet choices as well. And the bottom line is this..neither one of these guys will be able to fix the mess that is yet to come any time soon ... the "ride" as far as how comfortable it will be ... will be a much smoother ride under Obama .. but still rough, no matter who is in.

My daughter came to me asking if I thought this is the right time to buy a new car, since prices are going down and all kind's of deal's are coming forth. If your paying cash/ trade ... yes. If you are looking to get financed ... NO. Why? Because the desperation will get more stiff before it flatlines .. you want to do it before the markets come back ... but not after they peak on the rebound ... right now ... just sit tight and dont move too fast on anything. 401K's? ... Sit! do not jump. There will be a rebound ... if you need to jump because of financial strains ... do it only if your maybe 60+years old ... if your in your 20's, 30's, 40's ... sit tight ... because when all this flatlines and the comeback starts to come ... your resistance to withdraw will pay off for the "long-term". As far as car's and homes? True ... the prices are low .. and will comeback stronger in about 4 to 5 years ... but also realize that because of the current market and credit crunch .. you must "beware" of any contracts that you are getting into for the long term even more then ever ... they are going to milk you to the max as far as ANY financing of anything is at this time ... I would still sit for a tad and analyze on a daily basis the markets, rates on lending .. and especially for some of this "first" smoke to clear on who actually is stable, and who is not, and who is bailing who first, and especially domestic and foreign financial ties with whom, and their status. Example: This week for instance .. Iceland banks with many UK investors are doing bad .. stay away from affiliates till this ressolves.

Some may think ... that they dont feel good sitting on their 401K .. maybe because the hit many took over the last 2 weeks and the drops/losses ... and that's understandable ... but no#1 importance ... DO NOT panic! If you feel you need to pull out but dont want to rathole it in your mattress or whatever .. probably the safest place to put your money in right now .. believe it or not .. is government bond's, that's probably the maximum protection out there at this moment ... and please ... stay away from Europe ... their shaft is just starting to penetrate .. and they havent even took 6"inches yet ... sit and watch them first before leaning towards them. Alway's remember misery loves company .. and avoid the "company". Also remember that the entire world market will have some kind of reaction after the November elections no matter who wins ... and this "reaction" is up in the air as to which road it will take ... but yes this election in this country alone will actually effect the markets ... providing there isnt one of them cliffhangers of "hanging chads" or other nonsense like in 2000 with Bush and Gore ... lets get a straight victory ... let everyone get it off their chest's and get this on the road!

The flip side to all of this is this ... there is still alot of money/ capital out there in the free market ... some may have less .... but those who have something ... this will open doors for many new investors ... especially small global competition, which will eventually bring the big ones to their knee's of failing or playing the new game, downsizing, dividing into multi companies, and a number of other things to just try to stay in the competition. So the bottom line is ... money is alway's going to be generating one way or another ... it's just by who? As far as China ... heh, heh, heh .. dont worry about them ... we have alot of their money tied up as well ... heh, heh, heh, as long as they have so much vested interest in this nation ... they will have to also "protect" their "interests" ... on every avenue ... heh, heh, heh ... who's got who ... heh? ... if we fail ... you all lose big time ... so lighten up and listen! Dont worry as I said ... greener pastures lie ahead .. it's only a matter of survival ... something we are damn good at by nature!

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