Dire Economic Problems Looming
I Am not normally a pessimist, But let me tell you something. There are some major economic troubles coming.
For instance look at gas prices. Gas prices are the canary in the mine shaft. In the old days, miners used to take a canary down into the shaft with them. If the canary died, then they knew they were beginning to be exposed to poisonous gases. It was an indicator and a first response. That is what Gas is. I am beginning to notice other prices going up as well. Grocery bills are certainly getting higher. I haven’t gotten a raise have you?
Yes expenses are going up and income is going down. The first thing to go will always be charities. People will stop supporting good things that can help in times of crises and they will retreat in on themselves protecting only themselves and their immediate family.
Next goes discretionary spending. Cable companies, recreational expenses, this stuff will be gone. I am telling you right now. What is coming is something we have not seen in a long long time.
I have a stock (I have a few) but one of them is a tech stock - the same kinds of stocks that made billions of dollars ten years ago. Every Single day lately I get an email that says “SILC has reached a new 52 week low.” It is a reminder that everything is consistently plummeting.
Why do I keep the stock? I don’t need the money. And the economy will eventually correct itself. That stock is likely to get eaten by Microsoft or Yahoo or someone in ten years and maybe I will see my money again. Of course it is just as likely to go bankrupt and fall to pieces. But that is the risk you take. I decided to take it.
This sort of thing is never regional or local. The economy is global. Economic tragedy is global too. There is no way we can keep it from happening. And when it does it will be a disaster. What do you think, am I being a bit dramatic? Are we going to be okay? Are incomes going to rise or are prices going to fall?
Then again, In such a touchy market, an earthquake or Hurricane in the wrong place (or a terrorist attack) could really send things into a spiral. Look what happened to the much stronger economy of 9/11/2000.
What will happen? Could a cataclysmic event happen in tandem with the struggling economy that sends us back 100 years? Will we pull out of this? Will America be forced to drill in Alaska and close its borders to impotently try to insulate itself? What are your thoughts?
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