My other blog entries!

Monday, August 8, 2011

Stock Traders and People interested in the Stock Market!


During these economic down turns, those who really understand how the stock market works will normally start to buy in at this point. Perhaps waiting a couple more weeks would be sensible, thought a lot of stocks are much cheaper than they were just one month ago.

I have to put out a warning though. There's a difference between cashing in on the general public fear that the world is falling apart using your own cash versus taking out a loan to invest  (unless you are taking out a loan to invest the sum in a Term Deposit/CD account which is guaranteed at a fixed rate normally... and if the rate is higher than your interest rate on the loan, then it is actually quite brilliant). I'm sure you can decipher for yourself, which one falls into either category.

Taking a loan out to invest could destroy your credit and life. If you have found an amazing deal or something that made you believe that this is your time to walk away from the bunker and jump into the war (even though your strapped for cash... but are absolutely positive that this is your calling), then I suggest you stay put for now untill you can save up a few more dollars. Stocks will rise, but they will drop again. You will have your chance... things happen for a reason. Don't make the mistake that millions of Americans have made, and that is taking a loan out to buy a home in hopes that their life and their salary would be the same for the 30 years that they signed on for their mortgage. Except for you, it would mean that your taking out a loan, and perhaps the stock drops and now you owe heaps of money to the bank, and are paying for something that you no longer have. This happens, I've seen it happen and it's not pretty.

"There is only one real sin, and that is to persuade oneself that the second-best is anything but the second-best."         - Doris Lessing

Tuesday, August 2, 2011

International viewpoint on U.S. debt ceiling vote

Ausgust 2, 2011

Christchurch, New Zealand

It was a historical moment in the United States yesterday. Let's start out here with a bit of examination on the whole situation.

"QUESTION: What does the deal do?
ANSWER: It allows the Obama administration to issue at least $900 billion more in government securities -- and raise enough money to pay the nation's obligations for six or seven more months. It also creates a process in which an additional $1.2 trillion, if not more, can be raised down the road."

Studying abroad in breath taking New Zealand has been a really unique experience so far. I have met people from all around the world, all sharing very different views. I have finally found something that myself, and all the other international students at Lincoln University can agree upon. The fact of the matter is, that the U.S. is digging itself deeper and deeper into an endless pit. Some say it's going to give us a boost, but I say we've had plenty of boosts, it's now time to cut down on spending.

Now I understand that according to Obama's plan, we are going to cut costs into the billions (if not into the trillions) over the next couple years. As well, the debt ceiling will eventually rise to $1.2 trillion... luckily, not all at once. My question is, "we have bailed out companies which appear to be thriving... we were there for them, why can't they be here for us? I understand the money is coming from somewhere, and most likely, elsewhere, out of the United States... specifically thinking it will be coming from China perhaps? Why can't it come locally. Wouldn't we rather have a risk of defaulting in the United States, rather than with another country!?"

What are your thoughts? As a young adult, or an adult, how do you feel this will afect our futures? Will we ever escape this habit of endless spending?


"People with clear, written goals, accomplish far more in a shorter period of time than people without them could ever imagine."

- Brian Tracy