Economic News...and a Huge Heap of Opinion!

Living in Lancaster County can
be a bit like having your finger
on the pulse of the East Coast
Economy. We have watched things
sag. They haven't been devastating
but you could see a downward trend.

People were let go who had worked
at major tourist stops for years.

However, there is a change in the
air. People are coming out and
spending money. Perhaps it is their
tax refunds or just a resurgence of
confidence but I spoke with a friend
who works at one of our local Outlet
Stores. She tells me that she is selling
mid to high end product without any
problem.

A friend's son who has been looking for
work for a very long time was recently
hired. In a great job!

Another friend in retail has been given
extra hours because things are picking
up.

I know, this is just a microcosm of the
whole but I have never held to the entire
gloom and doom that the economy was just
going to implode.

These things have gone through cycles since
the beginning of forever. It is natural.

We, as a country, have made bad choices.

This has happened worldwide, as well.

It relates to debt.

You know this.

But, there is a bigger piece to the whole thing.
What goes up, must come down.
How can we ever expect to buy low and sell
high if things only ever go up?

The causes of this particular downturn are
despicable! I am very put out with the
greed and political reasons behind it, but
the resettling of the market is ultimately
healthy.

I am happy that the Mr. Madoffs of the
world are being flushed out because of
this. It is a very positive thing.

We have lived through things like this
before. We tend to forget.

Here is the scoop...

If people are invested as they should be...
and I question how many are by the reactions
I hear...they should have enough cash available
for a couple of years. Then the rest invested
and having fallen quite low is not as big a
worry. There is time for a recovery.

Over the last decade it was hard to lose money.
People got greedy and shifted way too much of
their savings into the same basket. This
definitely hurts, in the short term.

However, if history repeats itself that money
left alone will come back.

I truly, and honestly believe, that things
are not as bad as we have been led to believe.

I think we are being manipulated for the
benefit of the Politicians who want to make
changes in this Country that are not so good.

Think about it.

Look around.

Check out what people you know are spending
and see if you truly believe more than 25 percent
of this country has been effected by this.
I think it is much lower than that...
of those who have had to change their
lifestyle because of any of this.

I am not saying that things aren't bad.

I am saying they are not as bad as the talking
heads want you to believe.

Can they get worse?
Sure.

Just sit back and let the government
get away with reclaiming the bonuses
through taxation... after the fact.
It is absolutely nuts that we have come
to call pre-planned, contracted income
bonuses but this will stop if we stop
accepting it. Make changes to the law
now to prohibit that in the future but
if we allow the government to come in and
retroactively tax people's income, we are
on a very slippery slope. When will they
decide to tax another small group of people.
When will you be one of those people?

However, We can get involved. Let our
Representatives know that they actually are
supposed to represent us.
We want less government
intrusion and more freedom.
We want the freedom to
start new companies, spend our money,
invest in the belief that we will recover.

This is a time for us to look at implementing
great ideas. Start up a company that you
have always wanted. Real Estate is almost
affordable. You can get that commercial space
for a better price now than last year...or likely
next year.

Have you heard about the house buying cruises in
Florida. Cracks me up!

You can get on a boat and go up and down
canals buying up foreclosures. People are
doing it. One realtor who was interviewed
said people are spending cash.

My Theory...

they have temporarily pulled out of the market
to buy properties for a song. The market value
will then come back up and they will borrow against
the equity to reinvest.

And thus the cycle of money will continue.
They won't be able to borrow as much as in years
past but they won't care. It will work out well
for many of these who are willing to take the
risk now. Some will lose it all.

I'm not going to jump on that bandwagon (nor am
recommending that anyone else do it).
No time or energy for that.
It is my responsibility to
remain focused on family.
But it is one
example of how our economy is helping some who
are willing to work and take on risk for it
to make money.

You don't have to agree but
think about it. Definitely be
very responsible with your finances
and deepen your pantries. Be as self
sufficient as you can be in things of
daily life. Do all that you can to waste
not...these are things that are Biblical.
They shouldn't be new ideas to us.
However, to many of us who have let the
culture of complacency and greed become
a part of our daily lives these skills have
been lost. We can come out of this stronger
and able to be of help and comfort to those who
are hurting.

Be encouraged.
Our God is an Awesome God.
He is our Strength and our Hope!
Don't forget to build up Heavenly Treasure
while preserving your earthly stash.

Blessings!

♥♥Becky K.♥♥

Do NOT Take my 401K!!!

The latest brainchild of some Democrats
in Congress...

How about we take over the Americans' 401k's
and make them have a starting value that they
would have had in August...before the market
losses. We will then guarantee 3%
on that money and give it back as a lump sum
upon retirement.

I don't think so!

I, for one, think that is a terrible idea!

I expect the value of (my/our) 401k to fluctuate.
This means that because we continue to contribute
during these lean times...we are buying shares at a
huge discount...we have time for the market to recover
before Warren will retire and we will do better than
3 percent!!!!!

I do not want the Government messing around with
my retirement plans!

No Way!

Don't you love how they have handled Social Security?

Want to trust them with your own private savings?

Not me!

No Thanks!

Nada!

Market Fundamentals - My opinions

I enjoyed watching the Dow surge
yesterday...it was fun.

Our crisis is not over.

The buying frenzy, however,
points out the differences
between the markets of today
and those of years past.

Speaking generally...

In years past there were only
a fraction of the people involved
in investing, because those who
invested were the wealthy with
the ability to begin with large
sums.

The general population may have purchased
a share in this company or that but they
were not exposed to the whole market as
is possible today with the variety of mutual
funds, retirement plans, annuities and other
tools available.

The popularity of these retirement plans and
annuities changes the investment landscape, as
well. The penalties are just too high for the
average person to pull before they are 59 and
a half...so there is a lot of money that will
stay invested that in years past would have
been removed until things got better.

This adds stability.

Aren't you glad?

Man, if this is stability!

The other basic fundamental about our economy
that will help to keep us afloat is that we are
in the process of handing wealth from the baby
boomers to the next generation. This generation
is one that is informed in the ways of investing
and who will be willing to do so.

The baby boomers will be passing unprecedented amounts
to their children and grandchildren over the next
ten to twenty years. Much of this money currently sits
in banks at very low earnings but will come into the market
or be spent in home renovations, new cars or other economically
helpful items.

We will get through this crisis.
It will hurt.
Many will lose their jobs.
Our way of life may change somewhat...
but the entire system is not likely to come
crashing down because there are safeguards,
there is volume,
and we are better educated today.

I have been encouraged as I drive through our little
town to have seen five "sold" signs on homes this week.

People are shopping for homes... and buying.

The industries that are likely to be hit hard
are the auto industry...most of us don't HAVE
to buy that new car and new home sales may stay lower
for a while...while buyers choose to buy existing
homes.

Medical/Pharmaceutical will likely stay strong as the
population ages.

The rich will continue to travel and buy their toys,
the middle class will tighten their belts a bit and
wait on major purchases until they feel "safe".

These are my predictions.

Don't expect that this amazing day on Wall Street marks
the end of the volatility...but I do not see that the
sky is falling...the clouds are low but not falling.

I have my concerns, politically, about this election and
its effects on our economy. There are some very scary
fundamental differences between the candidates that will
effect the long term health of our financials.

The further we head down the track to big government and
socialism the more at risk each individual is.

It is concerning to me to hear how many things Barak Obama
wants to "invest in" for us...while raising taxes on those
who are able to make money, hire workers and fund the economy.

Bad news.

It concerns me every time I hear that our health care will be
mandatory. Many jobs won't be developed...it will simply
be too expensive.

There will always be someone who is in more need that we are and
we will be expected to hand our wealth down...until supposedly we
are all equal.

This country was founded on the principal that it is a free and open
economy and we are invited to work hard and do well for ourselves and
our children.

Somehow we have gotten off that track and into an entitlement mindset.

I hope and pray that we would wake up and come back to the idea that
we work for the things we need,
that we would change the laws that allow our
government to spend our money in unrelated addendum to bills,
that we would have an attitude of caring for those around us that is voluntary...
not mandated,
that we would require our lawmakers to work for us as a whole...
not special interest groups who lobby using our tax dollars,
that there would be an outcry against frivolous lawsuits
that clog up the system and cause businesses and doctors
to change the way they operate in order to save their
own skin.

We have slid down a slippery slope.

Let us pray that we can still climb back up.

If this offends you...I am very sorry.
It is how I feel.
There are very basic truths that are being
ignored by both candidates and therefore by
America at large.

I am not concerned about one big "crash"!

I am concerned about the overall health of
our way of thinking...and doing business.

What do you think?