Financial Gurus at DU! Give us some advice about what we can

[Raven]

do to prepare for and survive a recession/depression. Thanks in advance!

[joeprogressive]

1. Vote Obama , electing a corporate shill like HRC won't help n/t

[Barack_America]

6. Actually, electing Obama would help stave off a depression.

A big component of any recession/depression is psychological. That's why the economists are always freaking out about "consumer confidence". And a big part of "consumer confidence" is how people feel about our country, both economic and otherwise. If people feel 'hopeful' about the direction our country is heading, they WILL spend money. The more money we put into our economy, the faster our country recovers.

But if we elect a President who the voters sense will just continue the policy and politics that got us into this mess, watch those purse strings tighten, and our economy continue to slide. And if you think this pertains to just McCain, you would be wrong. A fascinating national poll came out from Rasmussen the other day showing that Americans think McCain will be stronger against government corruption than Clinton.

http://rasmussenreports.com/public_content/politics/election_20082/2008_presidential_election/daily_presidential_tracking_poll

(It wasn't in today's poll, but one earlier this week. I hate Rasmussen's site, I can never find the stories for recent tracking polls)

[joeprogressive]

7. I know, I wasn't being sarcastic n/t

[Birthmark]

10. Normally, I'd agree with you.

IMO the psychological aspects are of little to no importance this time around, Kristi. The American "consumer" (and I loathe that word) is genuinely tapped out. It's not like a lot of people are sitting on a pile of cash or unused credit. They've spent/borrowed all that they can...and then some. IOW, enthusiasm isn't going to translate into spending at present. The numbers are awful.

[MannyGoldstein]

2. Move

Canada? Europe? China? India?

[Tesha]

13. The window's actually closing on that option.

With the dramatic fall of the dollar, an American
has far fewer resources to move away. And many of
the places Americans would be best-suited to move to
(for example, Vancouver, BC) are becoming very pricey
even in their native currencies.

Tesha

[screembloodymurder]

3. WSJ

Fed Is Expected to Cut Interest Rates
March 16, 2008
NEXT WEEK

Short Week: Stock and bond markets will close for Good Friday.
or should it be:
Short Week: Stock and bond markets will close for good, Friday.

1. Have an exit plan.
2. Have weapons and ammunition.
3. Have a two month supply of food and water.
4. Have a nice day.

[Cooley Hurd]

4. Most importantly, do what you can to reduce your debt...

...your CC's, mortgage, etc. Secondly, shift your 401K out the stock market and into a money market - precious metals are also a safe buy.

[Raven]

5. Thank you Cooley, good advice. n/t

[screembloodymurder]

12. Bad advice!

Mortgage your house (get as much out of your home as you can) and put the money in the Yen (FXY). Why pay off a mortgage when house prices are falling and you can pay off the bank with ever cheaper dollars? Be prepared to walk away should you need to flee to safety. The dollar fell 6% last week! Gold has already made a huge move and is ready for a pull back. I'm putting money in a Canadian bank and hiding a canoe on the south bank of the St. Lawrence.

[elleng]

8. Precious metals are

already sky high.

[Cooley Hurd]

9. True, but with the falling dollar, they'll continue to climb in value...

[elleng]

11. Unfortunately,

I haven't seen/heard any indication that these 2 have ways of thinking about such matters, unlike Biden and Dodd. So maybe if we see O and H schmoozing with some real thinkers, we could gain some confidence.