Even though I don't have much tied up in the markets, I was still concerned about the drops in the market and the spike in the price of crude oil in the last two days. I've been around looking for wise words but find that perhaps wise people are processing this event and waiting to see what will happen at this time next week.
In looking around I found a new catch phraise for what I think we are looking at. I found phrase "The Greater Depression" from reading guest columnist Doug Casey, guest columnist at the Prudent Bear. He says he should have trademarked the name but he doesn't want to blamed for the event (good thinking, I'd say). The implication is that what the economic future holds is far worse than the recession we have been in so far and on par with some of the world's most profound economic crisis. It will look different than the Great Depression in America because the conditions and times are different.
He only has a few words of advice and they are along the lines of reduce your standard of living NOW (while you still have some control), increase your savings (preferable in the form of gold - yea right), and prepare for a vastly different patterns of employment, consumption, production... for an extended period of time as the trouble is only just beginning. Now this might just be the rumblings of a bear, but its resonating with something in my bones.
I think the specifics of that kind of advice is along the like of what folks in the blogisphere are currently doing. I know that folks in the Independence days challenge are working to shore up all fronts, but what about the rest of you? What changes are you making as this financial storm builds? Do you think a we are in for a depression?
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6 comments:
What changes are you making as this financial storm builds?
I for one plan on changing my underwear.
Not to make light of your post, but i feel there are a whole lot of people who are gonna crap their pants when the bottom falls out
Rob, It's always fun to see what comment you're going to make!
That advice about gold is nothing new. We heard it in the 1970's, too. Not that I was old enough to have money!
Awhile back, we sold some mutual funds and decided to keep more money just in cash - against the advice of every regular financial agent in the world. :)
Also, we decided that although we would keep our retirement funds, I can't believe they will be there in 30 years for "retirement". Just too chicken to sell them.
The best investments are those that last a lifetime or renew theselves - like an orchard or a great bike.
I've also seen these phrases, which really make me feel so warm and secure...
The Greatest Depression
The Last Depression
Since I'm doing the Independence Days challenge - badly - I won't answer your questions here other than to say I'm generally freaking out. ;-)
I actually think a recession and Depression isn't the worst thing that can happen. We must reduce our consumption and over inflated expetations for a standard of living that the world cannot support.
It's all of the other issues with lack of oil, climate destabilization and water/food supply that are the most pressing to me. It is the heirarchy of needs- - some will be upset that they didn't get their dream home, job, life, etc.....but most of that won't look quite as bad when you are trying to just keep yourself and family alive, fed and safe.
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