Bailout of Financials only $87 Billion

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The bailing out of financial corporations has worked to preserve the system. Change is inevitable, whether it is good or bad. This time, change has beengood. Very soon, there will be more hiring and less layoffs. I was watching CNBC in early 2007 when I believed that mainstreet was going way down. I started to save money, and stop hyper-consuming. First Wall Street had a steep decline, and the only people that talked about recession was CNBC. The facts have changed since 2007. It was very hard for me to change my thinking. In 2010, the only people talking about recovery and hiring is CNBC, and they seem to be right.

Government tax credits helped spur a housing recovery, up 26% in March year over year. And the bailout estimate of the financial system is only 87 billion dollars compare to an earlier estimate of 500 billion dollars. Many people do not believe that massive hiring by private companies is right around the corner. I believe it is, and the stock market has already priced it in. The stock market seems to be coming back. Markets are stabilizing.

Thus while things are doing better, we can expect that capitalism will be around for a very long time. In the next few years we will see many more innovations from companies. The recession essentially has made innovation increase because companies are just trying to survive. We will soon see our lives change because of this recession, for the better.

Just because the stock market is up, and you might be hired for a better job, does not not give you an excuse to spend your whole paycheck. We never know when the next recession spurred on by corporations or consumers will be. It could be next year, 2 years, 3 years, or so forth. There was a recession in 2001, and then one in 2008-2009. That was only 7 years of boom years.

To my readers: save each month, do not spend outrageously, enjoy your time with family and friends without breaking the bank. That way you will know you have some money in the bank to survive unemployment.

Of course if everybody does this then the economy will get worse. The economy is 70% consumers. Especially for young people like myself, nobody knows when the next layoff or recession will be. Better to save so you will survive in your house rather than relying on family or friends or worse, on the streets.

Do not fret, hiring is right around the corner. The government bailing everything out has preserved the system. You may need to change your thinking before its too late.


In Recovery Mode

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The economy is now in recovery mode. Although we have 9.7% unemployment, the most in 20+ years, we hear that the economy is in recovery. Earnings from companies are roaring back due to all the layoffs and cutbacks. Companies are growing because the American Consumer seems to be spending again (in the last quarter, Jan-April). Restaurant Stocks are way up today, and internet companies are up. I do not know if the stock market can increase any further. Companies are not hiring en masse. The stimulus is running out, and the FED is about to think about increasing interest rates.

However, we are in America and more people are spending their paycheck, continuing the slide as the government provided incentives to buy houses, cars and furniture. Obama says today that the crises is over, were in the clear, and theres no more dire straits. One year from now, if unemployment does not lower dramatically, then the market will decrease again.

The economy could slip into a second recession in 2011, due to unemployment and stimulus running out. We may be doing well right now. But, that doesn’t mean go out and spend all that you earn. Think of ways for yourself to survive on less, so you can use it for the future if your unemployed or retired.

Be well and live forever!

Apple Epitomizes America

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The company Apple epitomizes America. Every time they release a new product there is a huge media storm about it. In turn, this causes more people to buy the products, even though some of these people would be better off without spending 500+ on something that will go obsolete in the next five years. Apple sold 450,000 iPads in the last few weeks. This is absolutely outrageous. Who are these people buying such devices? And have these people fully funded their retirement plans? This is in essence a major marketing deal. A lot of people made money on this. To me, the iPad is just a computer with less computing power, but in a different form. What makes it marvelous to these people, I don’t know. Does America need to spend to survive? (the answer is yes)

Consumer Spending makes up 70% of the US economy. Consumers have to spend until were in debt. We consume, consume, and consume, using up a lot of resources, hurting our planet. That’s why every time Apple comes out with a new product – many people buy it. They just have the desire to escape their jobs and work and turn it into retail spending. That’s how the economy keeps growing.

This hyper-consumption continues with the recovery, the economy is growing again and more people will be living paycheck to paycheck once again. As a nation we need to save more, to survive another day.

Back to Blogging More

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Hello all,

I will be back to blogging a lot more. Anyway, I am waking up realizing a few things right now.

Most of us work at a job thinking – how the hell can I get out of here?

We spend plenty of money on extravagant things because we hate to go into work tomorrow. Spending money and spending the bulk of the paycheck is a de-stresser. What are Americans doing with themselves. They look like zombies in the morning going into work and are exhausted at the end of the day. Is spending your time at work for 30 years your favorite thing in life? We use our time at work to make a living. There are plenty of people who do not work(their whole life) and live richer than more than 1 billion people in other countries. If you are in America (and not homeless) you are richer than many other people on the Earth.

Money and spending money does not bring happiness. Getting the hottest iphone or ipad will make me happy, or exacerbate the crises? Eventually something has got to give. More Americans are exhausted than ever with the current financial crises that is finally subsiding. More people are living to work just because they are in debt. This is outrageous and the government wants us to spend more( with home-buyer credits and sale tax deductions to cars). What are they thinking? Don’t get sucked up by this government spending hype, be fiscal responsible, save more. Spending money – oh its only 20 bucks here – 2o bucks there. I hate my job so I will spend this, is only exacerbating the problem. You need to save more and eventually save until you can quit your job!

It is harder and harder to get by because there just so many people on this planet (trying to take the same job as you) 6.8 billion people already and estimates are calling for 7 billion people in 2011. The internet has flattened the world, and the trouble is, America is not ready for this. Schools are actually on the decline and they need to be even better. There is a looming school crisis on the horizon. The shift of power in the world has tipped to Asia. The people in America are just fighting over what is left.

Always remember – What you do today is a precursor to what you do in the future. Your habits start today, not tomorrow. So then why wait.