Turns out not not everyone is a fan of the bailout plan but now what?
Run for the hills?
The government is going to have to come up with something to fix this problem as soon as possible and when they annouce it we might have a short day run up in the financial industry.
Could the credit market dry right up to the point where nobody can get a dime from the bank for their business?
Will the market keep falling?
What do you think?
Please comment
The world has been in chaos the past while as its most prestigious financial institutions have been closing their doors. Big time investment firms that chased big time profits through the fire have finally gotten burned through the subprime mortgage meltdown and Uncle Sam has had to bail them out. The world economy has gone into a real tailspin for the first time since the Great Depression and the U.S government is looking to give financial markets 700 billion dollars for a bail out.
A 110 page bill to slow down the credit problem in the states has been put forth by Congress on Sunday to save the world economy. Few details have been released about the bill but both Democrats and Republicans have agreed that something needs to be done; although this needs to get done, is this the right thing to do? Is 700 billion dollars enough to save the economy? Throwing money at a problem and hoping it goes away could be the last thing we need, but it is the only thing anyone has come up with. No “Plan B’s” have been heard from economists and financial experts, but what I personally think is that this is going to make a difference. Lucky President Bush is going to walk away from this mess in November leaving a legacy of dark financial gloom for the next guy whether it be Obama or McCain.
“This plan sends a strong signal to markets around the world that the United States is serious about restoring confidence and stability to our financial system”-Bush
Everytime I hear him speak about the economy it makes me a little weak in the knees. I hate to be the guy screaming bloody murder but I’m not sure that we are going to see a big turn around in the economy from this 700 billion dollars. I think the U.S is in for a longer haul and with this band-aid approach we could see the market and the dollar pay for it longer than we think. Resource ETF’s, although not taxed as great as stocks, make an excellent addition to a recession proof portfolio and I wouldn’t mind some gold in the next while. I’m not sure if we will see a shift into lower P/E companies that are paying higher dividends through this mess, especially if Obama wins the presidential election and raises the dividend tax. The number one thing I want in my portfolio right now is cash! Cash is King! I can always wait for those gems and in this falling market nobody wants to catch a falling knife.
Kelly Parks
www.wealthforinvestors.com
I think Kim Kiyosaki puts any women and investing myths to rest in this quote, “In the world of investing, the how to invest – how to buy a rental property, how to choose a stock, or how to get a good return on your investment – is the same for women as it is for men (RichWoman).” I am by no means a feminist, but I do believe that everyone from women to men, old and young, should be financially independent. And, although I’m not there yet (I still have to nip some shopping habits in the bud), I am working towards that goal.
What I liked about RichWoman was that it did provide some valuable knowledge to anyone wanting to get financially educated; for instance, the four keys to being a successful investor. Kim Kiyosaki states that to be a successful investor there are four steps:
1. Education – do your homework, be prepared and that may “mean the difference between making and losing money.”
2. Start Small – if you start small and make mistakes your losses are smaller; moreover, by starting small you are gaining first hand experience
3. Put a Little Money Down – this way you’re being an active investor, you’re reducing the risk, and you have a vetted interest because it is your money
4. Stay Close to Home – you are able to keep track of your investments if there is a problem and when your focus is limited to a number of key areas you’d be surprised at what deals you find…(steps 1-4 quoted from RichWoman)
These steps, along with others were all helpful suggestions. I also really liked the index in the back of the book that defined general finance and investing terms.
However, I did have a problem with the book in that it was more of a story than a guide on investing. She talked a lot about her friend’s stories on investing and on the importance of investing for women, but this isn’t that helpful if you are looking for a “how-to” guide. I would recommend this book but keep in mind if you’re looking for more a concrete guide and the how-to’s of investing, I’d shop around a bit more.
Last night I listened to a teleconference interview with Scott Hennig, the director for the Canadian Taxpayers Federation. The Canadian Taxpayers Federation is a non-profit organization looking to stick up for Canadian taxpayers against government waste. Although they are non-profit, they are not a charity and do not have affiliations with any political party. Scott went on to speak about how our government representatives think they know what to do with Canadian money better than the actual taxpayers themselves!
In the last election Liberal MP’s were quoted saying, “tax cuts only allow people to buy more beer and popcorn.” The average family in 2008 made 90,000$ in Canada in which 44% of that around 42,000$ dollars goes to taxes at all levels. Canada is the highest income taxed country of the G7 nations, even higher than Italy and France. In 1917, the Canadian Tax Code had 17 pages; currently it is 2226 Pages.
Currently in Canada we are having a federal election; the three main parties are the NDP, Conservatives, and Liberals who all have different tax platforms.
Federal Conservatives
- Want to create a first time homebuyers tax credit. This credit would be a 15% cut on the closing costs of a home up to 5000$ dollars. For example, if closing costs on your home were 2000$ dollars 15% of that would be tax deductible 300$ dollars.
- Make a diesel tax of 2 cents a liter
-Extend maternity leave opportunities to self-employed people
-Allow income splitting for people with disabilities.
Liberals
-Create a Carbon Tax of 10$-40$ per ton, which would also bring up the price of electricity, gasoline, and any transportation companies.
-Allow income splitting for artists.
-Scientific tax credits
-Reverse the Income Trust tax brought in by the Conservative party.
- Create a 350$ child tax credit.
NDP
-Create a tax break on apprentices going into training.
-Increase tax on corporations and businesses in general
-Create an inheritance tax
In order to keep Canada competitive in the global economy, we need to lower business tax to get businesses here that create more jobs. As far as the Carbon Tax goes, in Europe wherever it has been introduced has killed the entire manufacturing industry, raising unemployment.
On the teleconference call Hening went on to explain that the Canadian Taxpayer Federation is against small tax cuts and wants a flat income tax cut for all Canadians.
The Canadian Taxpayer Federation has more than 60,000 supporters and has been around since 1990.
You can help their cause at
Kelly Parks
www.wealthforinvestors.com
Althought Mastercard and Visa have been crushing their earnings reports over and over and putting up great numbers the stock has been falling of late.I think the viewing of credit cards in this market is silly really.Americans especailly are used to their way of life and refuse to change it for anything. Even in a bad economy do you think people are spending all that less in the last 12 months on their credit cards? Or are they just racking up more debt?
The average person is over 15,000$ dollars in credit card debt in America at an 18.5% interest rate when will it ever stop!
I saw this video on Break.com and I just had to post it.
