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You have probably heard a great deal about the
global economy over the past year or so. The global economy was just a
scam. The development of a global economy was not merely an experiment;
it was a bad-intentioned hoax. It was designed to bring industrialized
nations like the United States to its knees. Why? Because you can make
some serious bank in a third world market, if you know how.
Everyone by now knows we have sent our manufacturing jobs overseas.
Scarcely an inner-city kid graduates from high school anymore. What are
their futures like without some sort of decent semi-skilled labor that
pays an honest buck? These jobs are not coming back any time soon either.
We import crappy items from everywhere, further depleting our
manufacturing base. And high tech gadgetry is a pain in the neck to
operate, especially for anyone over thirty. Thanks, Microsoft et al.
Quality and value just become sort of lost ideals. Our stock market, our
real estate market, our banking system all blew a cog at the same time,
like the rest of the industrialized world’s, and we are left with
high-priced goods that have no
intrinsic value at a time when unemployment is pushing higher and
will continue to do so. We have not seen a floor on unemployment yet.
Credit cards rob us of our future, and the government robs our children
of theirs. Your children and grandchildren will grow up poor. You better
get used to that notion now. Saving for retirement is on the chopping
block too.
We need to radically rethink our approach, because now we are in a time
when nothing works. That is actually the best time to tinker with things.
I have a few suggestions that might help. I suggest a one year freeze on
foreclosures. I suggest fixing all mortgages rates somewhere around three
or four percent. If you are currently behind on your mortgage one or two
months, those months can be forgiven. There are plenty of properties out
there for investors and speculators, so this should not dampen their
efforts. It adds a little more stress to the mortgage companies, who were
a large part of this problem to begin with, but then the government can
step in again and bail them out, if necessary. We should at least be able
to keep our houses. Give the American people something in this time of
crisis. I am pleading with the powers that be. Let Congress work out the
details in a porkless bill. If Obama is true to his promises, we should
see less pet project pork on the table.
As for the stock market, if you don’t have any business being invested in
stocks and bonds, which is true of most people, then hold on and then get
the hell out, or just get the hell out, because we may be headed even
lower on the DOW. I can easily envision a 4,000 DOW Industrials. The
stock market is a big boy and girl’s game, and the little investor if he
or she was smart, got everything out already that he could. I realize
your 401K and 403B’s are down to nothing, but then those investment
vehicles need to be rethought anyway. Putting them solely in treasuries
or certificates of deposits might work better for some. Individuals who
have these investments should at least be given those choices. Company
matching is probably going away, at least for some time.
The banks are getting bailed out by the
government, but that will probably get screwed up as usual. It is
incredibly complex. Over regulation is part of the problem, and banks
that were not involved in the subprime fiasco should simply return any
bailout monies to regulators, because of the awful mess they will incur
if they don’t. And many banks simply need to go under. Get the funds back
to the people that they originally belonged to, and simply absolve the
bank. It happens every day. Bad businesses or businesses with bad models
or businesses that make poor choices go out of business. Fact.
Let’s get some help to the little guy and his family. Congress can afford
to eat pork and steak and fish and devour anything and everything it
wants. We’re eating beans and rice and potatoes. Where is our pork? We,
the little guys and gals, demand our pork.
2008 has been fraught with financial difficulties
for many and it is just going to get worse, long before it gets better.
The bailout has been hammered together, and nothing seems to stop the
exuberance of another bullet dodged, except reality. These firms and corporations
that are recipients of the largest bailout in government history simply
are not going to take on the risk that they did before. This only sticks
Joe and Jane taxpayer with a huge bill and nothing else. Therefore,
prices continue to skyrocket, all goods and services, as everything and
everyone tightens up the purse strings more and more. And it will be out
of complete necessity.
There is a ray of sunshine when America is
essentially reduced to third world status among its peers. The American
family will have a chance to heal and grow. And that will also be of
necessity. We will need to see the return of the extended family because
of the economy and the shape it will be in shortly. Parents that love
their pets and hate their children will have to find a way to reconcile,
because there will be no living in households with fewer than two or
three or possibly four incomes, no matter how average or minute these
incomes may be. Apartment complexes will do well, because a good number
will not want to remain in their homes for fear of losing their largest
investment if forced to sell quickly. So there will be a further glut on
the market, and housing will become very cheap, but possibly still an
ill-advised venture, and only some lucky few will be able to obtain
mortgages anyway. Realtors’ woes are not over yet.
Here are some predictions at large, and these are
certainly not places to put your money, if you have any left. Your 401K
or 403B is probably down to nothing by now, and as Stephen Colbert said,
diversification is now burying your money in your backyard and shoving it
under the mattress. Cab companies will do well. It will be tough for some
households to keep a car running. Waste management companies will hit
hard times, as consumers spend less, they will create fewer recyclables.
Veterinarians will not fare so well and will have to stop charging such
ridiculous prices. Individuals and head of households will simply have to
pay more attention to their boomeranging kids than their pets. Big oil
will do fine as always, whether it lobbies Congress very much more or
not. Its profits are so baked into the system, it will be fine with oil
at any price, and Big Oil will diversify into wind, hydroelectric, etc.,
etc.
The retail companies will be hard hit, worse than
what has been coming their way the last couple of years. Except this
effect will not be as severe with liquor and tobacco stocks. Movies,
publishing, video games, Internet companies may do all right, believe it
or not. Everyone will soon be in such dire need of escapism that
companies that provide products like these are likely to fare well. Wall
Street will do well with the government bailout, and Main Street will
fare miserably. Everyone knows this in his heart of hearts, just so few
will speak about it. The homeless population could explode into new
numbers. If you’re a small investor cash is the place to be, and deposits
fully insured by the FDIC.
I have gazed deep into the crystal ball on this
one. It’s not pretty.
Archive:
A Day in the Life of a Writer
Positive rotation – or spinning
a negative into winning ways
Cosmology 101 – Upon Being from Jacksonville,
Florida (but not really)
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Cameron H. Chambers was educated at Grinnell College, the
University of North Florida and Nova Southeastern University. He holds a
BA in Journalism and an MS in English. Mr. Chambers has traveled
extensively and especially enjoys traveling to Latin America. One
particular point of interest is San Miguel de Allende in the mountainous
central region of Mexico. He would like to drive the Pan Am Highway into
South America. His books include, Don't Cross the Devil, Confessions of
an Internet Don Juan, For the Love of a Madman and The Stone Cabin. He
resides in Jacksonville, Florida.
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