Things to watch

[longbow]

The stock market has been bad the last "few weeks" On paper it looks bad, but I've not sold anything. I have bought some cheaper stocks.

If I sell, I will have a loss, but a huge taxe deduction and carryover.

My credit cards have not be cancelled. China has not dumped T bills. Inflation is in check. Gas is cheaper.

My insurance is still inforce.........

However,

The dow crossing 8,500 will not be good and will panic many. It will raise an eyebrow with me. My concern is China dumping our T Bills or the Fed going crazy and printing money to pay off debt. Those two things will work me up.

[techres]

Originally Posted by longbow

The stock market has been bad the last "few weeks" On paper it looks bad, but I've not sold anything. I have bought some cheaper stocks.

If I sell, I will have a loss, but a huge taxe deduction and carryover.

My credit cards have not be cancelled. China has not dumped T bills. Inflation is in check. Gas is cheaper.

My insurance is still inforce.........

However,

The dow crossing 8,500 will not be good and will panic many. It will raise an eyebrow with me. My concern is China dumping our T Bills or the Fed going crazy and printing money to pay off debt. Those two things will work me up.

Feds printing money = inflation (understand that). China dumping T Bills = tanks value of dollar?

Help me with the second one there...

[longbow]

More dollars to purchase the same stuff

Dumping T bills would force more dollars into the system They have to go somewhere and stand out of the way.

Right now everything I have, except precious metals and a my family have gone down in value. I've not sold anyting so I have no real loss.

Couple that with the drop in the value of the dollar or hyper inflation and things get crazy.

I can deal with deflation . Hyper inflation would be tough to deal with. You would want to spend your cash fast, to prevent it from dropping in value more. That would be more bucks chasing fewer and fewer goods that cost more everyday.........bread $1 today, $3 two days later

[techres]

Originally Posted by longbow

That would be more bucks chasing fewer and fewer goods that cost more everyday.........bread $1 today, $3 two days later

Yeah, but so long as my pay chases even partially, and I have a good stock of food & gas, hyperinflation lets me pay off my loans early.

Or, it means the cities are on fire and we are manning barricades wearing football gear and and carrying spears...

[longbow]

yes- if you get a raise each week

yes to paying of debt

you might pay off the 75,000 mortgage faster, but a car might be 700,000

[techres]

Originally Posted by longbow

yes- if you get a raise each week

yes to paying of debt

you might pay off the 75,000 mortgage faster, but a car might be 700,000

I am 100% comission in a service field. If I don't work, very rich kids don't get to finish school or view porn. I may never sell another new item, but that is fine. As luck has it, we even have a large stockpile of used stuff that we got at a good price.

Utilities could be a problem as could be disruptions in parts supply. But fr the most part, I am better off than a salesperson or someone who is salaried.

And, yes, while the MSM is running around doing their panic thing, I am working on the silver lining of the situation (which would be more silver if I were more liquid). Don't get me wrong, the times are bad (I just found out a close relative lost their entire inheritance to the tune of tens of thousands of dollars), but panic will not get us out - opportunities and entrepreneurial spirit will.

[CarmelHP]

Believe me, historically, deflations have always been more wrenchingly painful than hyperinflations. Hyperinflation at least allows a clean start. How about if your $100K mortgage was suddenly the equivalent of $2M.

The Chinese won't dump debt. It's not in their interest to take big losses or kill their markets or drive down the value of their investments. The Chinese are partners at this point. As for the Dow, I don't think that 7500 or 8000 is an unrealistic bottom. There's a lot of speculative froth that still needs to flush out.

My guns and ammo values are at all time highs though.

[indyjoe]

Originally Posted by CarmelHP

As for the Dow, I don't think that 7500 or 8000 is an unrealistic bottom. There's a lot of speculative froth that still needs to flush out.

There needed to be a correction. Prices versus earning have been out of whack for a while. I'm most worried about the derivatives market. There is more "value" in derivatives than real wealth. People are going to find out soon that the trillions and trillions of dollars tied up in that really isn't there anymore.

[Royal-1]

Originally Posted by indyjoe

I'm most worried about the derivatives market. There is more "value" in derivatives than real wealth. People are going to find out soon that the trillions and trillions of dollars tied up in that really isn't there anymore.

I think it is more like 1.14 Quadrillion or more now, this info is dated from July.

Global Derivatives Market now valued at $1.14 Quadrillion!

July 24th, 2008

The Bank of International Settlements, which seems to be the only institution that tracks the derivatives market, has recently reported that global outstanding derivatives have reached 1.14 quadrillion dollars: $548 Trillion in listed credit derivatives plus $596 trillion in notional/OTC derivatives.
Yes, that is Quadrillion. One and 15 zeroes!

I would highly recommend taking Chris Martenson's "Crash Course" for some really good info on how the system works, where we have been, and what things look like for the future.

[zimzum]

IMHO, right now is a good time to invest. Wall Street is having a big sale on everything. That's if things work out. If we have an economic meltdown, the U.S. dollar will be worthless anyway. Either way, investments are secondary to preparing for the worst. Paying off debt, stocking up on tangibles, etc. Just my .02.