The only way this recession could become a huge disaster is if we do not learn from our mistakes.
If everyone were equally rich, then no one would be rich
Over the last few weeks Joe the Plumber has turned into the most famous plumber in the U.S. Well, it turns out that, a few months ago, he was an investment banker.
It doesn't take an expert economist to figure out that we are in a recession, if not worse. Probably the only reason the government is saying "the financials are sound" is because they don't want to add any more salt to the wound. Instead, they have been trying to stave off another Great Depression and have, surprisingly, responded with un-bureaucratic like efficiency. For example, in just two weeks the Federal Reserve and the Treasury had nationalized Fannie Mae and Freddie Mac, taken over AIG, extended government deposit insurance to $3.4 trillion in money-market funds, temporarily banned short selling in financials, and signed on a $700 Billion dollar bailout. Volatility levels have reached a nearly all time high and the Dow has been trading between 11,500 and 8,500 points in the last three months. All this points to a complete state of frenzy and panic that have erupted from investors, the likes of which are remniscient of the Great Depression. Which makes it an excellent time to buy. [more]
The only reason the sky is not falling down right now is because Chicken Little is not here.
Who in the world is Joe the Plumber?
New data came out today that pointed to a recession. All I have to say is, are the people who wrote that living in a cave or a subterranean nuclear hideout?
The government reaction to the subprime mess is similar to a person cleaning out the toilet.
History has proven over and over again that significant rallies like this will pull back, so buying stocks right now is one of the worst times to buy.
Ben Franklin once said, "A penny saved is a penny earned." A more modern term would be, " A penny earned, a house bought."
No, the title was not a typo. No, this has nothing to do with fairies, one-handed pirates, or a never-aging child. And yes, this will probably be the weirdest thing you have ever read, so prepare yourself. [more]