Tuesday, September 30, 2008

Musings on the coming financial armageddon

OK, so the Congress voted down the recovery bill as it was originally constructed. The market fell 777 points, and the sky should be coming down any time now. Zombies will be walking the streets in the near future, and dogs and cats are starting to live together.

Here's my advice on how to get through this:
  1. Keep your head and your money in the game. The people who made money during the Great Depression were the ones who kept their money in the market. Don't cash out your 401k and keep the money in your mattress. You only lose money if you cash out too early.
  2. Don't switch jobs anytime soon. Noone knows at the moment how this is going to shake out, but I think it's safe to say that if layoffs happen, the new guy is probably the first to go.
  3. Don't plan on buying a new house or car anytime soon. Unless you can almost pay cash for the darned thing, odds are the bank is going to charge an enormous amount to borrow if they'll lend to you at all. Get cozy in your home, and keep doing the maintenance on your car.
  4. Pay down your debt as much as you can. If the worst happens, the less debt you have the better.
  5. Stock up on canned food and shotguns. I'm just saying.

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