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Posts Tagged ‘taxpayer money’

My friend Joe sends me disturbing articles from time to time.  This is the most disturbing one.  This is your Government at work destroying our country.  This is why we will never return back to normal.  This is why the stock market remains EXTREMELY risky.  Before you go to the chart, consider this:

Our Government has committed 10.5 trillion dollars of taxpayer money and has only invested 2.6 trillion of that 10.5 trillion. 

Click through to this disturbing chart.  Did you ever think that you would see an America like the one we have today?  More importantly, are you even a little bit outraged?

http://money.cnn.com/news/storysupplement/economy/bailouttracker/index.html

We will have no choice but to be dependent on the Government.  You are seeing the framework of socialism developing.

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Today on Prudent Money, I talked about how extremely important it was to reduce your risk when it comes to your investments.  You can listen here for the podcast.  I also didn’t even get to remotely cover the topic today as I would have liked.  So, I am working on a special paper on the subject which will go out this week in the Prudent Money Newsletter. 

Make sure that you sign up for the newsletter so that you will receive it in your inbox.

I want to stress that making sure you understand your risk in this environment is extremely important.  Unfortunately, the mutual fund industry scares you into believing that you should never change your investments and definately never sell stocks because you might miss out.  I want to make sure that you are looking at this the right way and not the way that the financial services industry wants you to view it (which makes them the most money).

The problems in this economy and financial markets are many and they run deep.  That is still the case after the Government has thrown billions of dollars of our money at the problem.  The problem is that the crisis just doesn’t go away.  AIG announced today that they will report a loss of $60 billion for LAST QUARTER.  They will need another $40 billion or so.  How about we continue to pump more of our money into a horrible business model?  After all, we are going to continue to keep propping up the car industry.

Finally, we are now proud owners of 40 to 50% of  Citigroup.  Throwing even more taxpayer money at this problem will probably not make this problem go away.

That was just Monday’s news!

So, we are not in just a normal cycle and you shouldn’t view your investments as if we are experiencing normal risk.

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