Managing Your Money

How To Make Bucks In Our Economy

The Next Crash?

The economy today is a crazy one, that’s all I know. When the markets go in an uptrend for that many years it doesn’t take a degree in finance to predict that there may be some financial difficulties on the herizon. Heck we probally wouldn’t have had som many years of profitability if it wasn’t for the sub-prime mortgages that were being given out. It could be worse than it is now. I know the market is essentialy all theoretical (by that I mean numbers that dont amount to a whole pile of brincks), but what was hit was the most speculative secor of them all.

Also, really you know the people majorly affected by the credit crunch were the people who had no business getting credit and the people who lied on their applications. What is too bad is that fact that people who followed all the rules and did everything right will pay more for their mortgages in the end. People who did what they should have (like gotten reasonable mortgages) are the ones who the US goverment should concern themselves with. I suppose those people are being saved in a way, because of the liquidity being introduced into the markets that wll keep mortgage rates lower then they would be if the full brunt was felt. It is probally around their natural levels.

All people really want to know is where the markets are going? There is no real way to know for sure. From the business books I have read, and the info I’m getting from my stock trading software they are goign to be going down for a while. I heard a guy talking on the radio the other day, and read in some statistics in an online article that the economy was going to be near or in recession for the next 2 years and then should recover until 2010. I know that seems a long time away right now. For the next period, until the economy flattens out, I would suggest looking to safe places like government bonds. Avoid volitility at all costs in my opinion.

This entry was posted on at and is filed under Investments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.