I watched a bit of Glenn Beck. I had to turn him off. He was telling his audience to stock up on food. His guests were saying that super inflation from this bail out is going to simply wipe us out. Sure our FDIC-insured bank accounts are safe but the value will be gone. One of his guests said, “You will spend $100,000.00 on a tank of gas!”
Can I tell you I feel sick? I can’t figure out if this is just another over-hyped Y2K: Planes will drop from the skies! or if everything Glenn Beck and his guests were saying is true. I mean, am I going to suddenly find myself enveloped in a black and white world, hocking newspapers on the street corner while wearing knickers and a jaunty little newsboy cap and eating my meals at the local soup kitchen? Am I going to have to eat my shoe and entertain myself by placing potatoes on the tips of forks and doing a little dance? Or is it just going to be okay?
I read where just the other day a Financial Planner killed his wife, mother-in-law and three sons before turning the gun on himself. The reason? Financial woes. One of Glenn Beck’s guests said that during the Great Depression unemployment was at 25%! Or course that also means that 75% had jobs. That’s still the majority. Regardless of how unique I think I am, I have always fallen into the majority. Should I go out and stock up on Campbell’s Soup? How about bars of gold and silver? Or should I just sit back and wait and see? Of course by doing that I may find my nest egg going to fill up a single tank of gas.
I keep thinking of Doris Day. Que sera, sera.
Glen Beck is little more than a big mouthed fear monger. Last week, he urged his followers to “sell all of their stock”.
Today, that advice seems prophetic. On balance, it’s absurd; if anyone was spineless enough to acquiesce, they’ll miss the recovery, which may well come sooner than later.
Y2K was 95% hype; this, too, shall pass. The moral of the story, is, “build a portfolio with a tolerable amount of risk (for you)”. When the market’s up, it’s easy to have a high tolerance for risk. When it’s down, that’s the real test of your fortitude.
I am 95% in stocks, 5% in bonds. I should be 80% stock, 20% bonds to sleep better at night, but, would I sell today? Not a chance. Sell high, buy low…
Watching Doris Day and not some television prognosticator getting ratings by scaring you sounds like a pretty good idea! Actually, the dollar has been increasing in value because other countries are fleeing to a safe haven. Everybody wants to have their savings in cash now but at some point people will want their money invested in companies that make money so they can go back to particiapting in company profits. If you invest for the long term things will revert to the mean. Keep saving!
Don’t worry…be happy.
Watch Pocketful Of Miracles
and remind yourself that you’re Louise, not Apple Annie.
You can’t stock up on Campbell’s Soup – it comes in a can and you can’t eat canned foods because they’re bad for you. Remember, “Most canned goods are coated with a resin lining derived from Bisphenol-A (BPA)”. I’m pretty sure beer cans don’t have that coating so go ahead and toast the economy 😉
I remember back in the 70’s when I was a kid and it seemed the world was crumbling – energy crisis, stock plunge, unemployment, inflation. My Mom loved it! She had no money to gamble on stocks – all she had was her bank account. With skyrocketing inflation she was able to get a double-digit APR on her savings account. When’s the last time you saw that?
I guess what it amounts to is being able to see the silver lining in the dark clouds that surround you.
Personally, I think we’ll pull through this like any hardship before. I just don’t like having to pay for other people’s mistakes.
If it’s any consolation, Glenn Beck has been telling his audience to stock up a year’s supply of food (and water, and to plant Victory gardens) for at least the past few years that I have been listening to him–it’s not new because of the economy. He always just said it makes sense not only in case of a national or local emergency, but even if you personally lose your job or something, you always know you have enough to eat. And before all this happened, he was touting storing up corn, wheat, and soybeans because of the food-for-fuel movement.
President Bush clamors for
Congress to act (quick! hurry! the sky is falling!) on “rescue” bill. Congress caves in, Dubya signs “rescue” bill on October 3.
Dow Jones Industrial Average
close Oct. 3: 10,325.38
Dow Jones Industrial Average
close Oct. 9: 8,579.19
I wasn’t a math major, but
I think that’s a 16.9% pounding since Bush (and McCain, unfortunately) joined forces with the Democrat Party leadership in Congress
in an effort to save us.
Lucky me, though. My paltry
savings are tied up in money market funds.
“The most terrifying words in the English language are: I’m from the government and I’m here to help.”
— President Ronald Reagan
The Dow Jones is back in positive territory today. And I bravely transferred a large amount into Julia’s 529 last night.
Dow Jones Industrial Average
right now: 8070.79
Does anyone watch the not-so-silent screamer named Jim Cramer? Talk about inciting
a panic! All we need is some
shmuck like him pouring gasoline onto a raging fire.