In the first article in this series; Gold and Your Money – Insurance for Your Wealth During a Financial Meltdown; Part 1 – Gold as Money or One World Currency? We discussed potential relationships between a financial crisis, gold and its use in those times and the US and world’s governments’ objections to such use and the most likely first choice for them in this situation – a ‘One World’ currency.
This is what leads many people to Alcoholics Anonymous and other twelve-step programs. They are free. They have meetings at many locations and at various times of the day. Thousands of people have used these programs to get clean and sober. For those who have completed a recovery program, AA can also be a good form of continuing care.
Despite Fed Funds remaining around 0.25%, the bond movement did put upwards pressure on CD rates. For 1-year certificate of deposit rates, we saw an average increase of about 0.15%. On 5-year CDs, the increase was even higher, around 0.25%, and we saw a high of 4.00%. One bank even offered a 10-year at 5.10% (Yes, it would be a good idea to join our list).
Within a few weeks, calls to rebuild the gulf coast region have been mentioned by President Bush and other leading politicians and echoed throughout the media. Many have stated that we cannot allow a major American city to remain destroyed, that rebuilding must occur. At any cost at European recovery fund any price.
The first bubble recorded happened in The Netherlands in 1637. What New York is to Wall Street, The Netherlands is to Tulips. Amsterdam is home to “The Tulip Exchange”.
Policies and politics in Washington will continue to play a role in how the economy rebounds. President Obama is rolling out a small business program, which could help businesses acquire funds and hire workers. The re-appointment of Federal Reserve Chair Ben Bernanke, while causing much grief with political factions, is a sign to Wall Street that business will be as usual.
How about cutbacks in military expenditures to help fund the project? No, I am not talking about cutbacks to Iraq, but why do we still have such a large troop presence in Europe? The cold war ended more than fifteen years ago, isn’t Europe able to defend itself?
Investing safely hasn’t changed over the years. Real estate has made many millionaires and will continue to do so. Recession creates fear. Fear leads to bad decisions. You should never have to play catch up with your investments. You must manage those investments intelligently in both good and bad times. Sitting doing nothing is the worst thing you can do. Making your earnings earn more is the key to becoming wealthy. Recovering what you have lost is really a step backwards. Consider investing in real estate. Keep moving forward.