Yeah, we talked to our finanacial advisor yesterday and got more or less bupkiss for advice we can actually move on. He pretty much said to not bail now since it's supposedly a paper loss rather than a real honest-to-goodness loss, but still, if we could move our nest egg to a highly safe, low yield fund or bill, that'd be better than seeing more "paper losses" to the point it looks like the stuff in my toilet bowl.
He was saying, "Don't worry! Ten years from now you'll make up the hit you took this year and see real gains." Uh-huh. Riiiight. Maybe I'll use the financial statements your company keeps sending me as wall paper. And my investments were in the moderately conservative risk catagory.
:/
Totem
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Between my child care, mortgage (child care is significantly higher than my mortgage 
), and bills, I barely have enough to put in my ROTH IRA.. 401k is 5% since the company matches that, but the sad fact (in my case) is that if my bank dies (unlikely) then I'm not out very much as I don't have very much in there. And my 401k? I'm 35 years away from even thinking about touching that money. Right now I'm just hoping I still have a job after the dust settles and can keep my nose to the grind stone. Also hoping I can keep working for my Bachelor's and then Master's degrees.
), and bills, I barely have enough to put in my ROTH IRA.. 401k is 5% since the company matches that, but the sad fact (in my case) is that if my bank dies (unlikely) then I'm not out very much as I don't have very much in there. And my 401k? I'm 35 years away from even thinking about touching that money. Right now I'm just hoping I still have a job after the dust settles and can keep my nose to the grind stone. Also hoping I can keep working for my Bachelor's and then Master's degrees.Quote:
I can't see any good solution to this at this point in time. Worse yet, is the credit card chickens may come home to roost soon which would utterly destroy anything resembling a viable economy.
For this I am grateful: CCCS has made me credit card free for two years now. My credit is slowly recovering, but regular payments on my student loans is helping out, and that's the only thing left outstanding on my credit report today. Yay!
My fiance and I share one credit card (in the name of his flawless credit), which we pay off every month. I don't think he's actually paid interest on it in over a year.
Elinda wrote:
I just can't decide if this big-buck government bail out is the best thing to do for our economy in crisis, or not.
(Yes, I'm saying there's an alternative that's better, but it's not being offered - namely, buy banks just as they're about to fail for far less [the total would more likely than not come out to a fraction of the $700B], apply some of the profits from these banks towards a tax credit/lower tax rates, gradually ride things out until the banks can buy out the government shares in them - mostly because the whole idea of even temporarily nationalizing the banking "industry" is anathema to a LOT of people.)
its not. all it will acomplish is delay the ineviatable correction the market has been trying to do since the tech stock crash in 200. all it will do is buy us a little time to find a real solution.
failing to pass it will cause US the people, some real pain though RIGHT NOW. lost jobs in the tens of thousands. every bussiness that depends on borrowing to make payroll, airlines who depend on borrowing to lease air craft, auto makers who depend on borrowing to sell cars, to home buyers and sellers who depend on borrowing, to contractors who depend on borrowing to finnish jobs.....the listgoes on and on and on.
the pains coming. all this bail out does is delay it. our economy has been soaring high from fat borrowed dollars from the feds dropping the interest rates to stem off the corection from the tech stock bust. now its time to pay and there isnt any REAL money from REAL earnings to back up the over inflated economy. our wages have been stagnant and shrinking.
PEOPLE are the economy, not bussiness. thats something the repubs dont want to believe. if the PEOPLE dont have the money to buy what bussiness are selling, it doesnt matter how much money you BORROW to keep them afloat, eventually they will still fall. the only differance the bail out will make is stalling their failure. the PEOPLE havent gained enough on their earnings to support the boom bussiness experienced from the flood of borrowed dollars created from dropping interest rates after the tech stock bust.
the PEOPLE do not have the cash to support the BUSSINESS. free market. LET IT FALL till it gets to the point the PEOPLE can support the BUSSINESS.
silly republicans. takes a depression to open their eyes.
failing to pass it will cause US the people, some real pain though RIGHT NOW. lost jobs in the tens of thousands. every bussiness that depends on borrowing to make payroll, airlines who depend on borrowing to lease air craft, auto makers who depend on borrowing to sell cars, to home buyers and sellers who depend on borrowing, to contractors who depend on borrowing to finnish jobs.....the listgoes on and on and on.
the pains coming. all this bail out does is delay it. our economy has been soaring high from fat borrowed dollars from the feds dropping the interest rates to stem off the corection from the tech stock bust. now its time to pay and there isnt any REAL money from REAL earnings to back up the over inflated economy. our wages have been stagnant and shrinking.
PEOPLE are the economy, not bussiness. thats something the repubs dont want to believe. if the PEOPLE dont have the money to buy what bussiness are selling, it doesnt matter how much money you BORROW to keep them afloat, eventually they will still fall. the only differance the bail out will make is stalling their failure. the PEOPLE havent gained enough on their earnings to support the boom bussiness experienced from the flood of borrowed dollars created from dropping interest rates after the tech stock bust.
the PEOPLE do not have the cash to support the BUSSINESS. free market. LET IT FALL till it gets to the point the PEOPLE can support the BUSSINESS.
silly republicans. takes a depression to open their eyes.
shadowrelm wrote:
every bussiness that depends on borrowing to make payroll
I mean, what comes to mind to me is "if you can't make payroll out of the last two weeks'/month's/whatever profits, maybe you have issues with your business model".
The technical term for this, MDenham, is "Robbing Peter to pay Paul." Most frequently it is done in the hope that tomorrow will be a better day and any losses will be covered by an uptick in sales. Not necessarily smart, but hope springs eternal.
Totem
Totem
It happens because of this.
Your client pays you once a month, on the 1st.
Your employees are paid on every Friday.
The 1st falls on a Saturday this month, and you just purchased a new server system for your IT environment in addition to having to deal with payroll. You are a hundred thousand dollars short, although you'll have plenty of money come Monday. You just need something to let you survive for that Friday.
A short term loan for one weekend will do the trick. $100K taken out today, $100,500 paid back on Monday including fees and such. $500 may not seem like a lot of interest, but remember, this was just for one weekend.
These kind of transactions happen every day across America's small and midsize businesses. It's the big banks that make that kind of loan available to the little guys.
Your client pays you once a month, on the 1st.
Your employees are paid on every Friday.
The 1st falls on a Saturday this month, and you just purchased a new server system for your IT environment in addition to having to deal with payroll. You are a hundred thousand dollars short, although you'll have plenty of money come Monday. You just need something to let you survive for that Friday.
A short term loan for one weekend will do the trick. $100K taken out today, $100,500 paid back on Monday including fees and such. $500 may not seem like a lot of interest, but remember, this was just for one weekend.
These kind of transactions happen every day across America's small and midsize businesses. It's the big banks that make that kind of loan available to the little guys.
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