The Federal Reserve and Central banks have just made it easier to get to the money supply. There is a plan to also relieve bad loans from many banks’ books.
Those of you that have kids out there, what happens when your child does something wrong and has no consequence to pay? What if your 10 year old child took all their electronic toys and and put put them in the toilet? Or what if your teen (who doesn’t work yet) took their cell phone or ipod to use as a hockey puck in the back yard? Would you just go out and get them another one? Probably not.
This is exactly what is happening with our government doing too much to bail people out of their problems. Money has become too easy to get without working for it.
Our Fed was not responsible for the millions of people who took money out to refi their homes, nor was it responsible for the lenders making the bad loans. It was the everyday American man and woman who went out to use their homes as an ATM and didn’t worry about the consequences of not knowing how to handle their money. Now the money is gone, their house has lost its value, the rise in oil prices have made it difficult to fill the car with gas, and paycheck to paycheck living is now in jeopardy.
Please…Take responsibility…If money is getting tight, find ways to make more. Go out and borrow books at the library on how you can make more money at something. Educate yourselves. If you leave your head in the sand, you’ve got no one to blame but yourself for not getting ready for the worst economic situation our country is ever going to experience.
***MARKET THOUGHT OF THE DAY*** Let the financial sector have its ride and prepare to jump in and buy short. Wait a few days and keep an eye on what’s making the sector move. All it takes is a little bad news (which we hear daily) and the sector will start heading back down again. It will take a while before the $200 billion has an effect on the economy, and I truly do not believe the effect will stop the downward fall of the markets. Also, the news today has again put gold and silver on sale. Buy now if you can. Even getting some the ETF shares would be a good idea, SLV and GLD are the symbols to do your purchase.***Disclaimer: I am not a “professional” and do not have a license to give advice and could be totally wrong in all my predictions or my feelings. If you decide to take my advice without doing your own research, that is not wise, and not recommended. Trade at your own risk and know that most individual investors (something like 90% +) lose money investing in the stock market.***