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Okay…Enough Bad Stuff…Here Are 10 Things That Are Going Right!
By JLP | October 24, 2008
I got an email last week with a link to Kiplinger’s 10 Things That Are Going Right. Their 10 things along with my thoughts…
1. Oil Loses Its Swagger – prices are down, but I think this is temporary.
2. A Tipping Point for the Auto Industry
3. Interest Rates Are Low and Headed Lower – yeah but will you be able to get credit?
4. Homes Are More Affordable – this is very true!
5. Your Bank Savings Have Never Been Safer -yeah as long as the FDIC can afford to pay!
6. Stocks Are on Sale, and Many Bonds Offer Terrific Yields – can’t argue with this one except to say that they could still go lower.
7. The Miracle of Technological Innovation Continues
8. Prosperity Reigns in the Heartland
9. A New Tone and Direction in Washington – no comment…
10. Shoppers Can Expect Great Gift Buys This Holiday Season – true if you can afford to buy gifts.
Anyway, head over to Kiplinger’s and read their complete list and their thoughts. It’s true that some things are actually going right even with all the turmoil going on around us. I guess it doesn’t hurt to focus on the good (even if some of them are a stretch).
Topics: Miscellaneous | 14 Comments »
October 24th, 2008 at 11:57 am
Everyone just has to stay positive during these times. Things will get better and work themselves out like they always do.
October 24th, 2008 at 12:29 pm
re: 2, A Tipping Point for the Auto Industry:
What’s good about that? A few cars are cheaper? Michigan is devastated:
http://online.wsj.com/article/SB122485816649566675.html
http://online.wsj.com/article/SB122476453519762301.html
With all the potential job losses, I think this should top the list of things that are not going well.
October 24th, 2008 at 9:07 pm
Interesting…I suppose it’s indicative of our times that you found a way to add a negative qualifier to 5 of the 10 things “going right.”
Funny that you didn’t comment on #9. I’m sure all your readers on the left who loudly proclaim themselves to be open-minded and tolerant would appreciate a bit of political commentary from you. Don’t you think? (What’s that? They’ve all stopped reading your blog! Well, better to live in darkness than to let the light of truth get in the way of one’s beliefs.)
As for #9, I fail to see how the “new tone and direction in Washington” is a good thing. The republicans and especially Bush dropped the ball big time but what’s coming down the road will make their tenure seem like paradise by comparison.
The democratic economic plan can be boiled down to one basic strategy — drag everyone in Amerika down to the lowest common denominator of economic misery. Then we can all be dependents of the state. The founding fathers of this ideology (Marx and Lenin) would be proud of their modern day comrades.
October 24th, 2008 at 11:24 pm
I agree with Kiplinger that #6 and #1 are good things. #6 especially. I wish I had more money to invest right now, but it just motivates me to get to a better position.
However, I strongly disagree with #8, #9, and #10.
I guess it depends on your definition of the heartland, but I doubt most average Americans would hardly describe times as properous.
As far as #9 goes, I don’t think anything will really change. I don’t think it has to do with the democrat/republican argument. I think its politicians in general. I guess I just don’t have faith that the people who were partially responsible for the tanking economy are also going to fix it.
With #10, I agree that there are plenty of deals to be had, I just don’t think now is the time for spending. Money would be better off in savings/investing/paying off debt.
October 25th, 2008 at 10:09 am
It’s amazing how much of the country considers itself the “heartland”, but it this much is true: 2007 and 2008 have been a bonanza for traditional corn/soybean farmers. It won’t last into 2009, though because the chemical suppliers are on track to gouge for fertilizer and pesticides. With commodities coming down, farmers are in for a perfect storm of pain next year with high input costs and low prices at market.
Personally, I think the comment on #5 is a bit misplaced. The FDIC can’t really run out of money as it essentially has access to the printing presses. Now a currency can fail, no question about that, but that’s an issue bigger than the FDIC. If you’re worried about that kind of “big collapse” stuff, I tentatively offer this: http://www.peakoil.com/fortopic14183.html Buy your guns now.
Now item #10 had actually occurred to me already. My wife is always getting on me for waiting for bargains, and I had just commented that we may end up getting more this holiday season because the bargains might actually be bargains for a change.
October 25th, 2008 at 12:43 pm
@William,
The decimation of the auto industry has nothing to do with this meltdown. The unions have such a stranglehold on the auto industry that they have not been competitive in decades! GM alone starts the year $6 billion in the red due to health care, pensions and generally providing for people who no longer even work for company. Automakers don’t even make a profit to speak of from the automobiles anymore – just the financing.
October 25th, 2008 at 6:02 pm
Agree on #1 and #6. I did invest a little in oil stocks in the past, but I think it’ll be OK long term. But with the current economy it’s better to have cheaper oil.
If only I had withdrawn money from stocks last December… I do have some cash but not immediately – most of it is in CDs, so as my CDs mature I may start investing a bit of it. Start with highest rated company bonds (not funds, individual bonds), then maybe a little into selected stocks – so many good companies with great earnings, great cash positions, good guidance and no credit problems are on sale now.
Two weeks ago at the height of the crisis was the best for municipal and company bonds. I didn’t have cash on hand, and only managed to transfer a little bit of money to my TD Ameritrade account last week, so I caught the tail end of it: got tax free 5.36% on my state’s municipal bond that has 10 years on it remaining.
I also have around 50% of 401K in stable value. I started moving into highest quality company bond funds last week; will move some parts into stocks gradually over next few months.
I’ve been thinking about #10 for a while. The only problem is inventory – they told on TV merchants are having problems getting credit to buy the inventory. So we may have sales, but there may be less of a choice. Still, will be interesting.
#9 worries me. I am afraid of the effect on economy taxing the corporations that pay our salaries may have. I am afraid higher capital gains/stock dividend taxes may have on the stock market. I am also afraid of one party being in charge without anything to stop them. At the same time, I think a lot of it is already priced into the market or will be soon.
October 25th, 2008 at 11:19 pm
I was just thinking about posting a very similar article.
October 25th, 2008 at 11:43 pm
4. Homes Are More Affordable – this is very true!
ONLY if you can buy. If you are renting because you can’t buy, homes are less affordable.
Rents in my area are up 25 percent over the last three years. MY rent is up almost 50 percent.
How is that More Affordable?
October 26th, 2008 at 2:44 am
While my pocketbook agrees with #1, overall I just can’t. I think the straight-to-the-gut shot soaring gas prices provided really did more than any rhetoric ever would to spur both lower fuel consumption and encourage support towards a huge variety of renewable energy sources, which you can get behind whether you are a national security wonk *or* an environmental wonk (or both!).
And while prices were perhaps artificially high, now they are dropping artificially. OPEC released more oil , and prices continued to drop. Where’s the actual market in all of this?
Anyway, long term changes in behavior require long term stimuli.
October 26th, 2008 at 1:27 pm
er, backwards. OPEC is limiting production, and prices still drop. anyway
October 27th, 2008 at 2:05 am
I really think, there’s still so much to be thankful for. Sure things are getting tough on the finances, but I don’t think things are that depressing yet. The fact that we can still do something about our situation is definitely a good sign of things to come.
October 27th, 2008 at 10:10 am
boy, aren’t you a bundle of encouragement?
love the italics.
October 30th, 2008 at 7:35 am
Can’t say I agree with #9 either.
If I remember correctly the Democratics have been in charge of Congress the last two years.
With wealth redistribution, I’m wondering why I go to work in the morning. I should stay home and let the government take care of me. They are such an efficient machine they run everything perfectly (IRS, Postal Service, Social Security, Medicare, Military Spending)