mrfrugal

ARE YOU FREAKIN KIDDING ME!! Ben Bernanke is a stupid son of a bitch if he thinks that lowering interest rates will help the economy. The only benefit of lowering interest rates will go directly in the commercial banks pockets.  Banks are not willing to take on more risk right now so they will continue to offer the same loans they are offering now but the banks will have less costs since they will borrow at .25% and make loans at 6-7%.  Why is the federal government giving money and benefits to industries that started this credit crisis?  We should be sending the top dogs at these companies to jail or at least put their faces on a website titled or in a major magazine “Deadbeat CEOs”.

If the banks do not lower their borrowing rates within two weeks the fed should then raise the interest rates up 50 points to .75% and let the banks make less profit.

Once again top dogs at Wall Street take advantage of investors to create personal gains.  News broke out today that former NASDAQ chairman Bernie Madoff set up a huge Ponzi scheme with loses which could hit up to $50 billion dollars according to The Economist.  For years Madoff has been paying the investment returns to investors not with real gains but with new investor money creating a huge pyramid scheme.  If it were not for Bernie’s ego the sham would still be continuing.  But clients and analysts got suspicious when Bernie’s fund was still creating positive returns in this troubled market. The government should make an example of this piece of shit a give him the maximum time for mail fraud and theft.

There are two problems with the US auto industry. The first is that management has lost touch with reality and does not know what the American consumer wants in a vehicle. The second is what brought the auto industry down, the UAW.  Unions served their purpose doing the industrial revolution but lawyers now are able to represent workers that are treated unfairly.  The UAW is a burden upon the auto industry and will in the end bring it down.  The majority of the auto industry workers are highly overpaid, cry babies and lazy people. 

I worked for a union for five years and I was laid off even though I was one of the most highly productive employees.  I was picked along with my other productive colleagues only because the other union members had more seniority.  Other lazy workers kept their jobs only because they applied before me.  I did however receive 75% of my salary for four months until I found another career.  I would had found a job earlier but shit; I was getting paid to sit on my ass.  Just like my fellow union members still working for the auto industry.

What the hell do we do now? Our 401k’s have lost half their peak values in the span of three months.  The national unemployment rate is around 7.5%, companies are asking to have government handouts and to top it off Britney Spears is back in the tabloids. Again, I ask you what are we to do now.  Let’s start by cutting the fat around your house because let’s face it; the only people we care about are ourselves.

First, cut your energy costs. You must realize that once energy has been exhausted through an outlet it is gone and never coming back.  If we cut our energy costs we cut our reliance on the dirty companies such as oil and coal.  When these industries are brought back down to earth with lower profits the better it will be for all of us. Less medical bills to start and you’ll have more spending cash for that trip to Vegas.

Second, shit the hell if I know. This economic situation is new to me.

Yes!! Congress finally did something right, they did not bailout the old school automotive industry.  Detroit needs to get a clue and start working for their money rather than begging the American taxpayers for handouts.  There are two solutions to Detroit’s problems. The first is getting rid of the unions and second is restructuring management.

The UAW is keeping the automotive industry on its knees.  The unions have crippled the auto industry without a doubt.  What the three automotives companies need to do is close its doors and reorganize their workforce. Nothing brings down an industry slower and more painfully than a union.  Lazy bastards.

Management does not get off the hook either. They need to cancel their bonuses and put more money in vehicles that Americans want. We want quality, not the crap they are currently turning out. Stupid bastards.

Yes Circuit City declared bankruptcy and DHL is cutting 9,500 jobs from its American operations but at least we have some bit of good news.  Gas prices keep going down, the loss of manufactured goods is helping the environment and people in general are starting to save more money since they no longer trust the stock market.  Yes, all is not good but we must not fall into the media’s idea that we are heading for death.  Don’t trust television news channels when it comes to the economy, they are mainly full of shit anyway.  CNN, MSNBC and Bloomberg TV are some of the stations worthy of watching but do not trust your local channels.  The local news channels feed off bad news, which is why they never start with anything positive.

Don’t get me wrong, the economy is in the shits but I don’t want to be reminded of it everyday.

Just because gas prices now hover around $3.27 a gallon doesn’t mean you can go out and buy that SUV.  Well, the current economic conditions will help you keep that SUV on the lot anyway.  But even so, we must keep steady and continue to conserve gasoline to help our economy as a hole.  If you don’t waste money on gasoline we can add money to our savings accounts or buy some goods from the hardware store to keep our houses up.  With a recession on hand you can not afford to give you money to corrupt regimes such as Saudi Arabia and Venezuela. We must keep our economy growing along with emerging economies.  We must continue to be smart with our money and it starts with our consumption of fossil fuels.

Okay, did you listen to my Sunday night blog and keep the bulk of you financial assets in the stock market and/or via mutual funds. I’m not trying to paint a rosy picture about our current economic condition but it is not as bad as the media perceives it to be.  However, if you did sell you financial assets Monday and Tuesday I don’t blame you.  Scientific studies have a term for such actions it’s called “fight or flight.”  Those that left had fear in them and flew the cuckoos nest.  Next time stay a little crazy and have faith in the markets along with a huge socialist bailout of the American financial institution.

Do not expect to be in black this year, but stay due course and ride out the storm, you’ll thank me five years from now.  Keep in mind, unless you are a professional trader you are not living off any dividends or capital gains from the sale of financial assets.  Your goal is to cash in those dividends and capital gains when you retire 20 years from now. Godspeed fellow investors I wish you well.

Let’s not continue to panic with the economy crisis. Continue to pump money into the market via 401k, buy stocks individually or mutual funds. The interests at stake are not just America but the world’s economy but most important, your finances.  With interest rates recently being cut, falling oil and cash about to be pumped into the banking system indicates that now is the best time to fight for your financial future. 

Overall non added value costs for the production and shipping of goods will decrease with the drop of oil and company’s holding back costs.  Hopefully, the cuts will come from oversea sources for it will not put a damper on home jobs.  But I guess if home companies are inefficient then maybe they themselves are holding back the recovery of the US and world economy.  What’s my main message for today is to buy, buy and buy stocks (research your picks please).

OUCHHHH!!!! Have any of you seen you 401k’s lately.  Damn, my 401k is down 38% for the year.  Now I know a lot of you are thinking if not already taking your money out of stocks.  But if you are 45 are under take my advice and continue to contribute to your 401k because you have time on your side.  The best time to buy stocks is when they are cheap.  The stocks have actually reached a normal price earning ratio.  So keep buying those stocks and you may even want to contribute more to your 401k. Do not panic and sell low only to buy high five years from now.  Yes, five years to see your 401 get back in black from today’s starting line.  Remember, saving for retirement is a marathon not a sprint.  If you’re over 45 then it sucks to be you.