Get ready for a rough ride (your finances)

[TexbowJ]

This week I heard that the money supply has doubled in the past 12 months and this is BEFORE this new "package" passes. It's a "package", alright.

Think about it...........there is a limited amount of products, goods, etc. in this country. If you double the money supply, what happens?

1. It's not immediately realized, but your money is now theoretically worth half of what it was. NOT GOOD for people with money. No money, no problem. Now were getting to WHO this administration is out to help, but they really won't. Temporarily yes, but look what's coming...........

2. With less goods being made (right now) a supply shortage is being created.

3. When people begin to spend again, the supply shortage is realized and prices shoot up (inflation). So will interest rates.

What to do? (IMO), refinance what you can and buy any large $ items YOU CAN AFFORD, soon. Prices are going to come down some more this year and maybe the next. The whiplash effect of this gov. action is going to hurt more than help. Gov. bail out of companies (some of which may be your competitor) is unAmerican! Also, try and keep cash on hand for emergencies. LIVE WITHIN YOUR MEANS !

The "quick-fix, push a button, take a pill, get a check" mentality is going to be the undoing of this country if we don't all wake up.

[Pablo Honey]

stellar!

[Death from Above]

agreed!

[chongo]

spot on!

[BpsDaddy]

Yes sir, good info.

[GRIZZ64]

Scary!!!

[Stupid]

Could you please forward your information to Obama............ Thank you!

[Blue Tick]

If your taxes are in order.....I hear BO his hiring. Since non of his people seem to pay their taxes.

[Outbreaker]

For those that have money, I would develop a stratagy to exploid the "Money Bubble".

Inflation will not become a real worry until the economies of the world get better (looking at this time next year). Then it will be Jimmy Carter all over again unless the FED rapildy shrinks the money supply and I just do not have that much faith in the FED.

[cosmiccowboy]

If your taxes are in order.....I hear BO his hiring. Since non of his people seem to pay their taxes.

That's why democrats LOVE to raise taxes. They know THEY won't pay them.

[Fishndude]

That's why democrats LOVE to raise taxes. They know THEY won't pay them.

Ok, that's frickin' hilarious!! Thanks for that!

[quickstrike]

you hit it on the nose.

[Landrover]

Cash is KING, Cash was KING, Cash will be KING in the future!!!!!
Pay your debt OFF.......there is zero reason to have consumer debt if you truly are concerned. (Store cards, bank cards, vehicle loans, etc.)
Get those school loans payed off now.
If you have the means get your home payed off.
Bumps, gulley's & craters in the road are always easier to deal with when you don't have folks with their hands-out before you even buy groceries.

[rjet]

Cash is KING, Cash was KING, Cash will be KING in the future!!!!!
Pay your debt OFF.......there is zero reason to have consumer debt if you truly are concerned. (Store cards, bank cards, vehicle loans, etc.)
Get those school loans payed off now.
If you have the means get your home payed off.
Bumps, gulley's & craters in the road are always easier to deal with when you don't have folks with their hands-out before you even buy groceries.

A couple post above yours predicted going back to the Jimmy Carter era.
If that were to happen, wouldnt it be wiser to take advantage of low interest rates now and keep the cash hoping for 18% interest rates again?
Is a serious question, bought a used car last month that I coulda and still can pay cash for. Interest rate is just a tad higher than the interest rate my checking account is paying. Just did a re-fi on the house too. In these times with possible layoffs in my industry I feel a helluva lot more comfortable hoarding the cash and have a monthly payment that can be sustained with saved cash for a couple years.

[Landrover]

A couple post above yours predicted going back to the Jimmy Carter era.
If that were to happen, wouldnt it be wiser to take advantage of low interest rates now and keep the cash hoping for 18% interest rates again?
Is a serious question, bought a used car last month that I coulda and still can pay cash for. Interest rate is just a tad higher than the interest rate my checking account is paying. Just did a re-fi on the house too. In these times with possible layoffs in my industry I feel a helluva lot more comfortable hoarding the cash and have a monthly payment that can be sustained with saved cash for a couple years.

I hear ya! I try to subscribe to OWNING what I have . Two reasons:
1.) mentally it gives you the momentuem needed in times like these and you can get some fantastic deals when everyone else is scrambling,
2.) Jimmy Carter was associated with very high interest rates and long fuel lines. Well, if I have paid off my "stuff" interest rates don't matter and I can sit "pat" until the economy turns. Also, if fuel prices go to those levels there is NOTHING any of us can do.
I also bought a used 2007' Toyota Tundra Texas Edition Crew Max last May for cash from a VERY motivated sellar. Man, it drives BETTER knowing that there is NOT a lean on it.
The interest you noted for the truck as compared to your checking account is sooooo minimal that owning it outright carries much more value, as you can now start saving the truck note money in a money market account!!! All this being said, having 3-6 months (if not more) of liquid cash on hand makes this process work very efficiently.