Upcoming Economic Troubles
I think that the United States is approaching multiple financial crises. The Fed made a once in a generation move today, cutting the federal funds rate by .75%, a huge change in policy. Bush is trying to put together an economic stimulus package going into the elections of $145 billion. But I don’t think that these measures will do anything more than delay the inevitable bursting of the bubble our economy has been in. Our country owes an immense amount of debt globally, the real estate and credit markets are caught in a quagmire and global market indexes have begun to crash in advance of the American economy. Previously my estimates of when the collapse would come ranged from 6-20 years, now I think it could be much sooner.
What am I investing in? I’m not really sure what the best investment is at this time, but I’m probably going to either get an options account and start short selling or invest in global mutual funds that keep out of the United States.
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2008: A Retrospective
Systemic Failures Still in Markets
Solving the Pirate Problem
A Modern Modest Proposal
Global Warming?
Elite Finance Gurus: Idiots, Frauds or Geniuses?
The Peter Pan Man Pictures & Upcoming Interview
MLB & Banks: Broken Systems
Good Article on Stock Market
Great Article on Economic Stimulus Plan
Like my cheesy pic? :) 
January 22nd, 2008 at 5:02 pm
What do you guys think?
January 22nd, 2008 at 5:14 pm
To be honest it sounds quite bad. When I first came to england there were talks about the US economy going through a minor recession but its getting worse by the day. I’m not too concerned cause Iran is selling oil at 100 dollars a barrel and although there are some heavy sanctions on Iran the economy is doing quite good. Real estate prices have been rising steadily for the past 10 years and in the last three years they have gone up 120-150% a year. Once the sanctions are lifted the economy will boom like no other and people are making ridiculous money over there. My suggestion for people in the US is to wait till the end of 2008 and then buy a property or two. Prices in the US will keep dropping for another year or so. At the moment US banks have a ridiculous amount of repossessed houses that they need to get rid of. The way the market looks like right now the banks will try and liquidate these properties ASAP. If you take advantage of this you can some serious cash in the next couple of years.
January 22nd, 2008 at 5:20 pm
Good call. I am thinking of buying a house myself soon. The Seattle market has not faced the same issues as most of the country yet though and it looks like it will be delayed even further after the Fed cut the interest rates today.
January 22nd, 2008 at 5:38 pm
I told Joel this but I’m gonna post this so everybody can see it as well. If you are not interested in purchasing a home then I suggest you buy stocks from companies that are engaged in real estate in the middle east (Dubai, Bahrain and Qatar). These companies are making a killing and they have oil as backup. Dubai is being developed at a ridiculous speed. American and British companies that are acting as contractors are building left and right. Bahrain and qatar have also started following in Dubai’s footsteps.
January 22nd, 2008 at 5:41 pm
Faryar is correct that these are great opportunities for investment. However, bear in mind that there is a high level of risk associated with such investments. The governments of these countries are not the most stable and could nationalize the assets. Also, if the rest of the world’s economics run aground, there is a good chance that oil prices will come way down and the real estate markets in these countries could be hurt.
January 22nd, 2008 at 7:53 pm
God says you should have listened to Pat Robertson. He predicted your demise because of the sin you have harbored in your hearts. Now it shall rain for forty days and forty nights. Rain the blood of stock brokers and the values of their assets! Thus sayeth me, the Lord!
January 22nd, 2008 at 10:12 pm
Hahaha… this is why we keep Warren Buffett around. He is “genetically programmed to allocate capital.” All hail the savior!!!
January 23rd, 2008 at 6:07 am
As far as I am concerned Warren Buffet is God and Arnold Schwarzenegger is God’s son.
January 23rd, 2008 at 9:20 am
“Ven I lift, it’s like I am coming constantly…it’s amazing, I just come and come and come”
January 23rd, 2008 at 3:20 pm
That is one of the best movies of all time. I actually told my dad the other day that if Arnold claimed he was God’s son or God himself I would actually believe him and most likely worship him.