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Watching the news and stock markets makes me really nervous about investments. With all the bad things happening in our banking system, housing market, fuel and food prices, and on and on, what is a safe place for cash?
I thought we would have advace warning(at least a day or 2) if our banks went under. Well that theory was blown away with the collapse of Bear Sterns.
How can we trust the banks? You can forget about the stock market or mutual funds. So what can you do to protect your cash? Even though our dollar isn't going to be worth much.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,769,842 times
Reputation: 3587
Everybody should worry about it because the Fed is printing up billions and billions of dollars that are not backed by anything. Either the dollar will fall to the value of almost worthless or we will soon be ravaged by inflation or stagflation. Either way, it ain't gonna be pretty.
Everybody should worry about it because the Fed is printing up billions and billions of dollars that are not backed by anything. Either the dollar will fall to the value of almost worthless or we will soon be ravaged by inflation or stagflation. Either way, it ain't gonna be pretty.
So, what do we do to protect ourselves? The gov't isn't going to be able to help. Thay are only making things worse.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,769,842 times
Reputation: 3587
Quote:
Originally Posted by CreditWitch
Good question...all of my money sits in credit unions...how do they differ in these situations?
Can we say Depression?
They are insured by the FDIC BUT if your dollars lose 25% of their value, it does not matter how much they are insured. The problem here is the USA dollar.
Watching the news and stock markets makes me really nervous about investments. With all the bad things happening in our banking system, housing market, fuel and food prices, and on and on, what is a safe place for cash?
I thought we would have advace warning(at least a day or 2) if our banks went under. Well that theory was blown away with the collapse of Bear Sterns.
How can we trust the banks? You can forget about the stock market or mutual funds. So what can you do to protect your cash? Even though our dollar isn't going to be worth much.
Oh, this country is in SO much trouble.
Lisa
No offense to you.
Generally speaking it's people with your way of thinking thats got the market the way it is now. People don't know what to do with their money right now so they are following the wave or the next bubble if you will.
Gold and oil are at record highs right now. 3-4 months ago gold was $780/ troy ounce now it's hovering at or over $1000 /per troy ounce. I think this is next bubble as people need to put their money somewhere. This is driving the dollar down even further. Fear, fear, fear and uncertainty. People want to get rid of the greenback as fast as possible in fear of it losing value even further.
This economy is too use to getting rich over night. Thus no one is diversify b/c they are taking everything and dumping it into one particular thing. In this case it's commodities. Once the Fed stops cutting interest rates and starts raising them again the dollar will regain it's value and the commodities bubble will burst and people will lose money again. Just like in the 90's with the tech stocks and 2000's with the housing bubble.
Everything is low right now and it's all about long term. Invest in an Index not individual stocks. Or if you are up on the stock game diversify and hold. People need to ride out the storm.
I'd say gold and oil are NOT where you want to put your money, you'd be buying at the peak. My portfolio has dropped quite a bit the last 3 months, but I'm not "worried". I'm 60 and no longer work, but despite all the bad stuff going on, the USA is still an economic powerhouse.
I'm well diversified, large cap, mid cap, small cap, international and cash. While I hate to think of how much has "melted away" since October I dont' think I'm smart enough to try to "time" the big market swings.
Remember '87? The big drop! Well go back and look at what the market did in the following years. Hmmm, '87 coming near the end of Reagan's second term. 2007/2008 coming near the end of Bush's second term.
Could it be that these "Republican economic miracles" aren't miracles at all? Just fancy financial footwork. "Yes, yes, we can spend ourselves rich".
I'd say gold and oil are NOT where you want to put your money, you'd be buying at the peak. My portfolio has dropped quite a bit the last 3 months, but I'm not "worried". I'm 60 and no longer work, but despite all the bad stuff going on, the USA is still an economic powerhouse.
I'm well diversified, large cap, mid cap, small cap, international and cash. While I hate to think of how much has "melted away" since October I dont' think I'm smart enough to try to "time" the big market swings.
Remember '87? The big drop! Well go back and look at what the market did in the following years. Hmmm, '87 coming near the end of Reagan's second term. 2007/2008 coming near the end of Bush's second term.
BINGO....I have been scooping up mad American Stocks at bargian prices....especially solid retailers. I also put a ton in corn futures last year. Buy buy buy, but buy smart.
I'd say gold and oil are NOT where you want to put your money, you'd be buying at the peak. My portfolio has dropped quite a bit the last 3 months, but I'm not "worried". I'm 60 and no longer work, but despite all the bad stuff going on, the USA is still an economic powerhouse.
I'm well diversified, large cap, mid cap, small cap, international and cash. While I hate to think of how much has "melted away" since October I dont' think I'm smart enough to try to "time" the big market swings.
Remember '87? The big drop! Well go back and look at what the market did in the following years. Hmmm, '87 coming near the end of Reagan's second term. 2007/2008 coming near the end of Bush's second term.
Could it be that these "Republican economic miracles" aren't miracles at all? Just fancy financial footwork. "Yes, yes, we can spend ourselves rich".
golfgod
Quote:
Originally Posted by CreditWitch
BINGO....I have been scooping up mad American Stocks at bargian prices....especially solid retailers. I also put a ton in corn futures last year. Buy buy buy, but buy smart.
Too bad the media isn't focusing on these kinds of deals. It's a great time to buy real estate too for a long term hold.
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