GET OUT OF DEBT

Just a general reminder - if you are able to do so - get out of debt and stay out.

The next leg down will likely occur sometime during 4Q 09 or 1Q 10.... so use this time to get your self in as good a position as possible.

If you are holding equities that have a positive net gain currently you may want to consider moving those assets over to short term AAA bonds. This next drop is going to be an ugly one.

One being the current "recovery" is premised on the belief that consumer spending will save us. Once 4th quarter is done with and the numbers do NOT support the "recovery" it will be another panic on wall street. Consumer confidence and retail sales numbers continue to be NEGATIVE. There is no consumer driven recovery coming this year.

We are also seeing jobs to continue to be lost with no real creation.

We are also looking at another real estate meltdown - this time on the commercial side.

Banks are also looking at a large amount of their loans being delinquent.

Furthermore we have not started to produce anything. The fundamental problem with our economy is too much consumption (on credit). The consumer is still tapped out and NOTHING has been done about that. We have bailed out wall street but no one else.

I have been right about everything I have posted so far. Hell back in 2007 I was on here warning about the MAJOR break down in the sales numbers nationwide at the retailer I worked for and the fact the executives at HQ were in a panic because major shit was coming down the pipe. I was told I didn't know what I was talking about. Guess what? A few months after I made that post the economy went to hell in short order. Don't prepare at your own risk.

Personally, I don't have any assets to lose.

"Hell back in 2007 I was on here warning about the MAJOR break down."

Whatever you think you know, you don't know. You have no idea whether the markets will go up or down the next 18 months. Like all those who thought Lebron James would win the NBA championship in 2009, you are saying what you hear various news people say. The people you're being influenced by haven't been right yet.

I would be saying we were having a great recovery.

And in 2007 I was using a different name.

It hasn't been two weeks since they were saying "it's a W recovery," meaning we are currently in the middle of the "W" and that next year the drop is coming, again.

If you want to think you've figured out the markets, that's fine. Your delusion is yours, and you're free to cherish it. But telling people on a publicly read message to take your investment advice is dangerous to them and irresponsible of you.

Investment strategy always starts with the specific situation and needs of the person, and each person has a different set of needs and personal traits. One size does not fit all.

Federal crime and go to a nice clean prison with 3 hots and a cot. If enough of us go together it would be like a big club!

:sarcasm: sort of.

n/t

If I go bananas and throw every spare dollar at my debt I can be free and clear in less than a year. With ZERO savings. If the shit is really going to hit the fan would I be better off with a perfect credit record and no safety net or with something stashed away for a rainy day and a risk of being forced to default on unsecured debt?

such as an IRA or a home in Florida.

Interest rates are up a bit, but I got to say it is not a bad time to think about refinancing if you have equity in your home. The extra cash could come in handy (easier to tap than lines or credit or borrowing against your house after you lose your job). Also you may get the side benefit of high levels of inflation (which may be one way the government will try to get out from all the paper it is slinging).

I am not following my own advice though. I have eight years left on my home, and I cannot stomach adding additional closing costs to a refi. I don't want to owe money to anyone ever again.

I can't even entertain the thought of treating the house like a financial asset or an ATM. I ADORE my house! It's not just my home, it's my hobby. My mortgage is laughable and will probably be paid off in 5 or 6 years anyway.

Off topic - but, I love this house so much I've thought (briefly)about setting up some kind of trust to maintain it after I die. (hopefully a long time from now!) :loveya: love the house...

Accumulating savings will keep you from going further into debt as emergencies arise.

Generally speaking being debt free is going to make you *much* better off... especially if the worst case scenario of this "recession" happens.

I would look at this if I were you....

*What recurring bills do you have? If you get rid of all the optional ones and only keep the ones you NEED to survive how much does that add up to? How long would you be able to keep up with those bills if you paid off debt in full but had no savings? Do you have a secure job that will allow you to build up savings and keep making those payments? If you are at risk of losing your job and have no way to keep up paying your NEEDS payments then eliminating your savings right now to pay off debt in full MAY NOT be the best thing. If you have a very secure job that will allow you to build up savings WHILE paying your bills then it probably is a good thing to do.

*Do you have more money coming out every month than you do going in? If so you have to fix that problem too otherwise you will be right back in debt again after you pay it off.

What you want to try to do is look at your situation. Find a way to get completely out of debt AND build up savings. Once you get to that point you want to build up enough savings to be able to live off of for a very extended period of time. Unfortunately if it will take you over a year to get to the position you may not make it before the shit hits the fan.

Unfortunately if it will take you over a year to get to the position you may not make it before the shit hits the fan.

That's kinda been the story of my life! I never make it before the shit hits the fan! LOL My job is secure and I think I'm just going to go balls out and pay off my debt like I've planned. And keeping my fingers crossed that I don't regret that choice next year. I really don't have a way to save and get out of debt at the same time if I stick to the one year time-line I set for myself in June.

need it as a cushion and as escape cash possibly. If you can keep on paying your bills and keep savings the same, do that. It is really too late, in my opinion, to get rid of your debt AND build up another nest egg. So keep cash handy.

Cash is king. If you pay off all your debt, and lose all your cash reserves, you're putting yourself at risk. Always keep some cash, even if you have to carry some debt. You can default on debt. You can restructure it. You can't pay your bills if you run out of cash.

out now that I've made a wee bit back. Was hoping it would go up a little bit more :(