Is It Over Yet?

[tjavery]

Buy low, sell high.... now's the time to buy!

[SHANEA]

I was strongly opposed to the Phil Graham backed plan to let banks into the insurance industry and thus the insurance industry into the banking industry and the whole deregulation ideal.  Banks were fundamentally sound when they stayed within the confines of banking.

As far as credit card debt, etc.  - well, one can rack up a mess of stuff when they are unemployed for nine months and underemployed/paid for another nine months.  Even with a reasonable amount of savings, etc. to draw on.  It's not about buying things you don't have to have either - just surviving day to day.  Not about living beyond ones means either - just didn't expect to go from making X and ending up with 0 * X and then ending up with X / 3 - or 1/3 my "normal" income.   Friend of mine has racked up huge credit card debts because of his wife's illness.  Insurance doesn't come close to covering the costs, can't get her onto any "programs', etc.  Not living beyond their means either.  Anytime a visit to the hospital comes out to be lots and lots of money and the insurance company ends up covering very little of it.  Sad state of affairs all around.  Used to be the government would allow you to deduct your interest payments on vehicles, credit cards, etc.  Took that away from the consumer too - the consumer - the one that drives the GDP.  

[SHANEA]

Buy low, sell high.... now's the time to buy!

If one has the money to buy...

[Casa Grande]

I was strongly opposed to the Phil Graham backed plan to let banks into the insurance industry and thus the insurance industry into the banking industry and the whole deregulation ideal.  Banks were fundamentally sound when they stayed within the confines of banking.

Do you mean Phil Gramm?

As far as credit card debt, etc.  - well, one can rack up a mess of stuff when they are unemployed for nine months and underemployed/paid for another nine months.  Even with a reasonable amount of savings, etc. to draw on.  It's not about buying things you don't have to have either - just surviving day to day.  Not about living beyond ones means either - just didn't expect to go from making X and ending up with 0 * X and then ending up with X / 3 - or 1/3 my "normal" income.   Friend of mine has racked up huge credit card debts because of his wife's illness.  Insurance doesn't come close to covering the costs, can't get her onto any "programs', etc.  Not living beyond their means either.  Anytime a visit to the hospital comes out to be lots and lots of money and the insurance company ends up covering very little of it.  Sad state of affairs all around.  Used to be the government would allow you to deduct your interest payments on vehicles, credit cards, etc.  Took that away from the consumer too - the consumer - the one that drives the GDP.  

well, save, save, save, for that rainy day (or year)....you should have at least 3 months of cash on hand at any given time to be able to live on just in case of such things....Shane, by honest, you could easily have been employed long before those long months if you had been willing to leave East Texas.....we all have choices....live with them.

Have I been through financial woes?  You bet....Am I rich? Heck no.  But my financial woes are largely due to my own fault and my own poor choices.....kind of like the reason I have a large ass right now, my own doing.  I know what it takes to get rid of it, but I'm too lazy.  When my first wife was killed, my household income was cut in half, literally overnight.  I had about $3000 in the savings, about $8000 in CC debt, $96,000 mortgage debt, a $16,000 car I was upside down on and NO life insurance either.  So, I do know what it's like to be broke, and I know what its like to have unexpected circumstances. But you know what?  It was still my fault that I was broke after her death.

[SHANEA]

Do you mean Phil Gramm?

well, save, save, save, for that rainy day (or year)....you should have at least 3 months of cash on hand at any given time to be able to live on just in case of such things....Shane, by honest, you could easily have been employed long before those long months if you had been willing to leave East Texas.....we all have choices....live with them.

Yes Sir, you are correct on all account mate!   

[oldfatman]

My retirement travels have been severely downsized by this market crash like many folks.  One thing has taken me by surprise.  Since I quit work in Sep. 07 and started traveling on Oct. 7, I have had an average of three job offers a week.  Seems like everywhere I go, and it has been a lot of places if you check my blog, there are businesses crying for RELIABLE folks to work.  Now it may not be the type of work you prefer or at near the wage you feel like you are worth, but the work is available. From the states I have been in it seems that if a person wants to work, work is available.  And now I may have to go back to work if my "investments" continue to be trashed.  To answer the topic question, it is not over until you cease to be.

[RichardM]

My problem is that the only significant "savings" I've been able to make the last few years have been as contributions to my 401k. Lots of folks in the same boat, I'm sure. I guess it's just as well that the Vanguard site is currently only letting me access it at work. Too dang depressing to look at it at home.

[SHANEA]

I guess it's just as well that the Vanguard site is currently only letting me access it at work. Too dang depressing to look at it at home.

? Why ?  That defies logic to me.

[oldfatman]

Contact Vanguard. Something is bad wrong on that issue.

[RichardM]

I guess it's just as well that the Vanguard site is currently only letting me access it at work. Too dang depressing to look at it at home.

? Why ?  That defies logic to me.

Not the first time their site has changed out from under me. I'm in a training class this week and can't get in from here either. Looks like they've tweaked their security stuff yet again and my regular work PC is still registered so it still works. They've added security questions that you have to answer before you can log in from a new IP. Got in via my work PC and set the questions up and I should be ready to cry at home, too.  Nothing like seeing four years worth of contributions and gains wiped out in a couple of days of panic on the part of other people.

Update: Had to break down and contact Vanguard to get it straightened out.

[Undertaker]

Present value of future worth, live within your means today and you will not have to worry about future worth, never put my money into anything but land, mortgage on land and home is paid off, no car notes, never played stock market, might start now local utility company is record low, but will bounce back, live for the long, not short term, the only thing I do short notice is head for BB, as long term planning usually blows up in my face. Putting the crooks in jail works for me. Most of my financial planning came from my dad who lived thru the depression. Keep liquid as you can and again live within your income. only own two credit cards both paid off every month. This will pass also. At least it is getting where I can afford to drive to BB, with fuel coming down so will other things.

[SHANEA]

 

Back when I was teaching micro/macro Economics as an adjunct, I used to preach to my students that they needed to get out and "spend spend spend" anytime there was an economic slowdown looming.  Consumers drive the GDP and it's up to consumers to "turn this around".  Somewhere between 70% and 80% is directly/indirectly attributed to personal consumption of goods and services.  Worst thing that can happen is for consumers to start hoarding cash and not spending it on items.  Looks like it might be a dismal Christmas season for retailers.   Of course, the Christmas season is so important to many industries - it is an either make it or break it time - with a large percent of profits made in the closing days of the year.

If I were the Prez, I'd suggest changing the tax laws to allow consumers to deduct the interest on automotive related purchases as well as credit card debt from their income tax statement.  It would certainly help the auto industry and other retailers.

[Undertaker]

If you think this is a mess just wait.

[cjacob]

If I were the Prez, I'd suggest changing the tax laws to allow consumers to deduct the interest on automotive related purchases as well as credit card debt from their income tax statement.  It would certainly help the auto industry and other retailers.

HECK YEA  I would go buy crap I do not need.  As it is I made -7k last year due to business losses.  Still no darn check for being a tax payer.

[RichardM]

If I were the Prez, I'd suggest changing the tax laws to allow consumers to deduct the interest on automotive related purchases as well as credit card debt from their income tax statement.  It would certainly help the auto industry and other retailers.

HECK YEA  I would go buy crap I do not need.  As it is I made -7k last year due to business losses.  Still no darn check for being a tax payer.

Hey, there's an idea...we already have a capital loss carryover,  why not an income loss carryover? And somebody please bump up the maximum capital loss from the measly $3k ($1.5k for individuals)!