Bailouts, Bailouts, and more Bailouts
November 19, 2008 by Erik Folgate
Filed under Economy, FAQs
I could talk for days about these bailouts, but I don’t think you’re interested. We shoud be interested, but I’m just sick of it. Here’s the bottom line: We’re rewarding failure and punishing success. So many Americans want to tax the hell out of rich people and successful corporations, and they want to bail out companies that sowed their failures years ago. The auto industry has been failing for years. It’s not just because the economy is down for a year. They produced CRAP in the eighties and nineties. Toyota and Honda saw an opportunity, produced a quality, reliable product, and they took market share. The auto unions have gotten out of control, and they are sucking the life out of the industry. They have made it impossible for the “Big Three” to compete.
Take Advantage Of Values In the Stock Market
November 10, 2008 by Erik Folgate
Filed under Economy, Investing, Stocks
Last night I had trouble sleeping, and for some reason, I started thinking about industries that are tanking and will be a value for investors in the future. So many of us are scared by the media when they throw out words like recession and depression. We automatically think we’re going to lose our jobs and all of our life savings. It’s simply not true. Yes, there are industries that are lagging, but the bulk of the economy is doing just fine. Circuit City filed for bankruptcy, but in my opinion, it has nothing to do with the economy. They were always the bastard child to Best Buy. They’re prices couldn’t compete, and their customer service was horrible. Sometimes, companies fail because they suck, not because the economy sucks. Getting back to my theme for this post, let’s take a look at the industries to keep an eye on and start buying at a value in the market.
Show Your Patriotism Tomorrow
November 4, 2008 by Erik Folgate
Filed under Economy, Politics
Tomorrow is the pinnacle of the most important election of our generation. The best thing you can do is make an educated vote. Don’t go vote just because Leonardo Dicaprio told you to vote. Don’t just vote because Diddy says “vote or die”. Don’t vote just to vote.
Has The Housing Market Hit Rock Bottom?
October 20, 2008 by Erik Folgate
Filed under Economy, Real Estate
This is a subject that can lead to some spirited debate. Some experts say that the market is still dropping, and others say that the bottom has hit. I thought that the beginning of 2009 would be the bottom, because the Fall and the holidays are usually very slow times for real estate transactions, and the spring is when purchases increase. I found this article shows empirical evidence that the market could have hit bottom and be on the rebound. Here is an excerpt from the article:
Buffet Encourages Investors To Buy Stocks and Trash the Cash!
October 17, 2008 by Erik Folgate
Filed under Economy, Investing, Stocks
Here’s the Op-Ed from Warren Buffet in today’s NY Times encouraging investors to buy American stocks and stock stashing your cash under the mattress. If you’re going to listen to anyone during tough economic times, you need to listen to WEALTHY people, not the media and not other poor people in tons of debt. Wealthy people became wealthy for a reason, and many of them become rich by taking advantage of opportunities during tough economic times. I have harped and harped about this over the past few months, but I am not sure if anyone is listening to it. So, don’t take my word for it, take Warren Buffet’s word for it, the second richest man in the country.
My Reaction to the Economic Topics Discussed In Last Night’s Presidential Debate
October 16, 2008 by Erik Folgate
Filed under Economic Policy, Economy, Politics
Last night was the last presidential debate. So, now we need to make a decision and pick a president. I’m very glad that it will be over soon. Being in Florida, we’re a so-called “battle ground state”, which means we get bombarded with commercial after commercial about who is a bigger idiot. I watched most of the debate, and it was definitely the best of the three. Bob Schieffer knows what he’s doing as a moderator unlike Tom Brokaw. He kept the dialogue flowing and he didn’t freak out if they candidates wen over a few seconds on their answers. Nonetheless, here are my reactions, for what their worth.
Dow Continues To Drop; Government Buys Stake In U.S. Banks
October 10, 2008 by Erik Folgate
Filed under Economy, Stocks
::sigh::
Congress To Vote Again On Economic Bail Out Plan
October 1, 2008 by Erik Folgate
Filed under Economy
I haven’t talked much about the economic bail out plan being rejected on Monday, because I feel like all I’ve been talking about on this website is the economy. There comes a point when we must think about our own personal finances and what is right for our families, rather than what the federal government is doing. The lack of care and consideration towards what goes on in our local governments is alarming. Having said that, this economic bail out plan has massive implications. Much of this is politically charged, and you would not have seen a $700 billion dollar bail out plan so quickly proposed by the White House if it weren’t an election year. Congress voted down the bill on Monday, and now they’re going to vote for a revised bill tomorrow, so the market is going to be turbulent the entire week until something gets passed.
Where Should You Put Your Money During Times of Financial Turmoil?
September 16, 2008 by Erik Folgate
Filed under Consumer News, Economy, Investing
The recent news of the financial turmoil on Wall Street is unsettling. For younger folks like me, it’s even more unsettling, because my generation has never been old enough to remember financial problems like this in the past. Older folks know that we’ve rebounded from situations just as bad or worse than this one. One thing that we need to remember is that this is what happens in a free market. The market corrects itself by snuffing out companies that took on too much risk. This is why I disagree with all of the government intervention and bailouts on a philosophical level. On a practical level, I agree that it had to be done, or the future of our financial sector would have been very grim. Also, we need to realize that the government isn’t just bailing out these large corporations for the sake of helping a bunch of rich executives. They are thinking about the consequences that would ensue for the average customer of a company such as AIG. It’s a tough situation, but there is always a light at the end of the tunnel.
Could Today Be Black Monday For Wall Street?
September 15, 2008 by Erik Folgate
Filed under Consumer News, Economy
I woke up this morning, logged on to the Wall Street Journal web page, and a huge lump formed in my throat. The rumors of Lehman Brothers, one of the oldest investment firms in the nation, has failed. Merrill Lynch, one of the most well-known investment banking firms, is sold to Bank of America for about $50 billion dollars. AIG, one of the largest insurance companies in the world, will undergo a re-structuring process with its equity and debt holdings. This might not mean THAT much to you when you first read or hear about it, but it is huge. There is no telling what the stock market will do, but my guess is that the Dow Jones will drop well below 11,000 for the first time in a couple years.
