Troubled times

[Operator]

I want blunt and up front as to why I am writing this thread. The U.S./ world economies are far too shaky right now. Don’t spend your money on items you don’t need like expensive Swiss watches. You may need that money to get survive with/on.

I work in an occupation where I am around powerful people with big money. These guy/gals will be fine regardless of what happens with the economy. These people foresaw what the market is doing over a year ago. They have locked down their investments due to the fact they mostly feel a economic typhoon is coming that could set the “average middle class person” back tens of thousands of dollars if not more.

I don’t have the time to write every aspect of why you should guard your extra cash. I feel the current times should be proof enough for that.

I am speaking to the middle class guy of gal who buys a Rolex on credit. Who saves up to buy a watch but has little to no money for retirement. Who buys a watch thinking I can always get most of my money back if I have to sell it (go to a pawn shop or grey market dealer and see what your watch it worth today right now. You are in for a shock). Who thinks that they will actually make money on a Swiss watch (very foolish) or one who thinks owning a Swiss watch some how makes you a better person.

Please be very careful in these difficult times. Please take care of your loved ones first before you spend your money on any luxury items you just do not really need and can live without.

[flatpat]

Sounds like ahhh common sense. Also you should look BOTH ways before crossing the street because a car might be coming down the road.

[Singslinger]

Good advice and probably timely as well. I've always felt that you should only buy a Rolex (or any indulgence, whether it's watches or cars or something else) with money that you can afford to lose, or at least write off without much pain. The fact that your indulgence might hold its value over time should be seen as a bonus, not as a primary motivation to buy.

[jaeger]

Originally Posted by flatpat

Sounds like ahhh common sense. Also you should look BOTH ways before crossing the street because a car might be coming down the road.

You'd be amazed at how many people lack common sense. Just take a look at some of the questions posted here.

[Jimbits76]

I'm okay, if things go belly up and I lose the family home, I'm off to move in with JJ

J

[Gasoil4ever]

Unfortunately if things go really bad... the 5000$ spendt on my 16710 won't change a damn thing... more than for 1 month or 2

If economy really crashes down be sure having or not 1.000.000$ cash in your safe won't save you...

I spendt 8 years as a child in Africa, including Zaïre when it collapsed. Until you have seen an angry and hungry mob, you don't know what a human being is capable of. And being rich... then makes you a target... just my 2 cents

Just live as usual, spendt as usual and things will settle down by themselves. Western world is just that far to be bought by ex third world country (China, Saudi Arabia, Brasil, etc) because THEY have the cash...

For instance this morning 5% of a very important french bank (Crédit Agricole) has been bought by a Chinese company... already 40% of the CAC40 assets belong to foreign countries...

[seantk]

Good advice

Sean

[Quicksilver]

Sound advice - we should all take heed and try and keep cash in reserve.

[Mike B]

Very good advise IMO. I was watching the news yesterday, and at one point the DOW went down over 800 points, the most points in a single day the stock market has ever seen. With times like this, I sure won't be buying anything unless I REALLY need it (food clothes, bills (well, who the heck needs them lol but we still have to pay them), etc.

[Tombstone]

WOW great advise yesterday and now today. Let's put it this way what I have lost in the market (on paper only I am in this for the long run and will not sell.) I could have bought a Daytona, a Green Milgauss, a SD, and Two LV Subs. OUCH!! and these are some what safe stocks nothing crazy. Hold on this ride is going to get wild.

[Ashley]

I don't understand why Canada is not in the dire predicament that the US and Europe are in right now, but I'm crossing my fingers that we all get through this together!

[Art161]

Originally Posted by Tombstone

WOW great advise yesterday and now today. Let's put it this way what I have lost in the market (on paper only I am in this for the long run and will not sell.) I could have bought a Daytona, a Green Milgauss, a SD, and Two LV Subs. OUCH!! and these are some what safe stocks nothing crazy. Hold on this ride is going to get wild.

So are you thinking about changing the Real Name under your avatar?

[gmh1013]

As I said a few weeks back "its a big sh*t sandwich and we all are going to take a bite"

[Ashley]

Originally Posted by Art161

So are you thinking about changing the Real Name under your avatar?

[DSJ]

Originally Posted by Jimbits76

I'm okay, if things go belly up and I lose the family home, I'm off to move in with JJ

J

Get in line buddy, they only have one extra bedroom - we're first!

Although we COULD screen off the carport for you!

[C6Racing]

Solid advise - My personal belief is a person always needs to keep a minimum 1 year's worth of living cash saved before spending on ANYTHING unneeded .

[2careless]

Nowhere to run! What asset class can protect value nowadays?
Equities - people says it's near bottom - I don't think so because I think the stock market hasn't yet priced in a 18-24 months recession in Amercia. BTW, we can't even short stocks now.
Properties - residental properties here are off their peak in 2007. Volume has shrunk, prices are holding but once people starts to get margin calls in stocks, they will force sell their properties. So, it's not yet time to buy.
Commodities - RIP except Gold. With gold at >US$800 per oz, it's too expensive to buy big, imho.
We had a term deposit matured yesterday and guess what, Aussie banks have no depositor insurance! Our deposit is not guaranteed at all. Do we split it and deposit in different banks (we got 4 "big" ones)? or take it all out and deposit into Bank of China?

[Goodwatch]

I've always done that. There will be a huge shakedown and things are happening that I haven't seen in my lifetime. The Icelandic government has just nationalised the entire banking sector and foreign clients can no longer take out or deposit funds from their IceSave account. Our government made a statement yesterday that they already have reserved 50 billion Euro for the next banks that fall! 50 billion! 50 thousand million Euro Tax payers money?

[Ed Rooney]

I'll be scouring the pawn shops for DRSD's!!

[unclesallie]

Run, Run For Your LIVES !!!

c'mon guys, hang in, you're ALL doing better than me !

panic not.

best,
dan

[JJ Irani]

Originally Posted by Jimbits76

I'm okay, if things go belly up and I lose the family home, I'm off to move in with JJ

J

Plenty of room in the sheep-pen, my friend!!

[ratae1950]

Some good advice for any economic climate.

Let's not forget FDR:

"We have nothing to fear but fear itself." [hope I got that right.]

[Terry Newton]

I'm still buying $500.00 worth of stock every payday. Life is good.

Buy low; sell high. When the market recovers down the road we will be worth more.

Terry Newton

[Letsgodiving]

I moved a chunk from bonds to mutual funds in my 401k at the end of today. I have 18 years before I can touch it and if/when the market goes lower I will buy more. Anything short term I wouldn't touch the market but I have faith that over the long haul it's a good move.

[limbo]

Very good advice. I've resisted the temptation to buy a watch on credit, no matter how much it "talks" to me.

I'm one of many thousands of people affected. My parent company has decided to wind down the department I look after.

I have been given notice and will be out of work at the end of Jan 09. Thankfully, I do not have much debt and my small redundancy payout will help me out for a few months until I find a new job.

[Ed Rooney]

My opinion is that we are hearing a vocal minority of weathermen right now. You know the old rule...if you predict a snowstorm every time it might snow, and it snows, you are a genius. If it does not snow, everyone is happy and forgets how wrong you were. However, if you miss predicting a few snowstorms, you are fired.

[2careless]

Originally Posted by Terry Newton

I'm still buying $500.00 worth of stock every payday. Life is good.

Buy low; sell high. When the market recovers down the road we will be worth more.

Terry Newton

Nice dollar cost averaging Terry! Your payday is every day right?

[Terry Newton]

Originally Posted by 2careless

Nice dollar cost averaging Terry! Your payday is every day right?

I wish.

I get paid every two weeks. My employer matches 3% of my annual salary also. I also pay in to a Roth IRA for Elizabeth, another roll-over IRA for Elizabeth that we put store proceeds in to, and another IRA for myself that I had to put some money in to when I settled on the lawsuit over my accident.

We should be fine at retirement age. It's looking like most Americans will have to work longer and longer as pensions are rapidly becoming a thing of the past. Many people have not been good savers through being too poor, family raising, poor planning, etc.

It's going to be a sad state of affairs when people have to work till they die like many, many years ago. I hope we come up with a better solution to take care of our elderly.

Terry Newton