Ecenomic Collapse and Depression

Aug 16, 2007 11:55

There have been a number of really bad fiscal decisions over the last decade made by the Democrats, Republicans and private parties which are starting to bear the fruit of depression ( Read more... )

finance, 2017, doom

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Comments 16

neophoenix August 16 2007, 16:40:59 UTC
Do you think that there are any industries that will thrive/fail horribly? What do you think would be a good investment(s) for this? How should we prepare? Any advice for Joe Six-Pack on how to prepare for this?

And please don't say "learn Mandarin".

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voideng August 16 2007, 16:51:05 UTC
I think pharmaceutical/biotech companies are going to be doing well and should only have minimal problems as a sector.

Life Insurance tends to run counter to the market and generally does well overall, but the financial sector is going to be in ruins.

Most of my is currently in mutual funds, roughly a third of that is in international funds. If you have less than $10,000, mutual funds are really the only way to go.

Wait a bit (maybe 6 months) and purchase a house that you can afford with a 30 year fixed mortgage and plant to live there for at least the next 10 years.

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neophoenix August 16 2007, 17:03:54 UTC
Thanks for responding.

I think I'll wait until this selloff is over before I dump my stocks and put it into mutual funds.

The industry that I am in is shipping, but our company has some very weird quasi-relationships with the DoD, so I'm hoping that my job will be secure in the event of a sharp economic downturn.

I've actually been looking at buying a house within the next few years, but this market (Memphis, TN) doesn't really seem to be following the same trends as the rest of the country.

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carrot_khan August 16 2007, 16:51:23 UTC
So...I should wait a bit before buying a house?

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voideng August 16 2007, 16:54:54 UTC
Not really, just make sure that you get a long term fixed interest loan. And make sure that you can afford to live in the house and save money as well.

If the dollar weakens the value of the hosue will go up and it will be cheap money.

If the dollar gets stronger the value of the house will go down, but the effective cost of living there will go down.

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artemispri August 17 2007, 01:58:40 UTC
If you have less than $10,000...

LOL, what if I have essentially no savings and am over a quarter million in the hole with student loans? Any chance that SallieMae will go down in the white-hot, wrathful flames she so VERY RICHLY fucking deserves and I will get out of debt?

Please?

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artemispri August 17 2007, 01:59:40 UTC
No, seriously.

The way I figure I have nothing to lose. Bring it on. Let's crash the bastard tomorrow!

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sinthrex August 17 2007, 06:42:36 UTC
Even if they weren't fed backed, they would sell off their assets during bankruptcy (ie: your loan) to someone that would still want their (previously your) money.

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voideng August 17 2007, 02:58:57 UTC
Sorry no luck, all of Sallie Mae's loans are backed by the Fed. If it goes under it probably won't matter much anyways.

http://en.wikipedia.org/wiki/Sallie_Mae

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flower_of_storm August 17 2007, 03:30:43 UTC
over the last couple of years, especially in michigan I have felt we are going to be in a depression soon. Not looking forward to it.

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voideng August 17 2007, 12:55:59 UTC
Michigan is in a depression as a result of some really bad governmental decisions based on tax code and land usage laws. If the stock market collapses things will get really ugly up here.

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(The comment has been removed)

voideng August 17 2007, 12:57:06 UTC
My guess is that you are either working for very smart people that are making money off of this, or there is a panic which is making everybody crazy.

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