Last week while in DC I attended a Brookings Institute economics briefing. I was surprised that the big "D" word was referenced so many times for comparative purposes throughout the two-hour round-table discussion by these world-class economists.
The following are direct stated conclusions of the seminar:
• Referring to the banking/mortgage mess: o no one is in charge, o no one understands the depth of the problem o no one knows how to fix the problem o we haven't bottomed out yet and it's certain more banks will fail • as the unemployment rate increases--more mortgage defaults. • we are now exposed to conditions similar to those preceding the great depression. • the US is beginning its "safe haven" status, with international investors now seeking other alternatives. • essentially, the culprit is thirty years of on-going deregulation and lax over-sight governance of financial institutions [and, shame on us, we've always known that bankers can't be trusted]. What I didn't find [my purpose for attending] were answers as to how to hedge my businesses.
Enjoy your weekend and you had better pray for some luck! A I think we are on the brink of a Depression and I hope we are all ready. Mom
We have a 401 K, but not a big one. We will be dead at retirement time anyway. It won't be too much different than normal, though.
Today the market has rebounded to about where it was before. Now it is just the govenment that is in dire straights. I think it has bought the biggest sub-prime mortgage of all. Do you think that any new regulations are going to make the government do any better?
By the way, my mortgage is with a company owned by Leman Brothers. And I am up to date.
3 comments:
What's so scary about the Dow dropping 500 points and my retirement flying out the window?
Good thing I've still got 30 years 'till retirement.
I got this e-mail from Allen yesterday:
Last week while in DC I attended a Brookings Institute economics briefing. I was surprised that the big "D" word was referenced so many times for comparative purposes throughout the two-hour round-table discussion by these world-class economists.
The following are direct stated conclusions of the seminar:
• Referring to the banking/mortgage mess:
o no one is in charge,
o no one understands the depth of the problem
o no one knows how to fix the problem
o we haven't bottomed out yet and it's certain more banks will fail
• as the unemployment rate increases--more mortgage defaults.
• we are now exposed to conditions similar to those preceding the great depression.
• the US is beginning its "safe haven" status, with international investors now seeking other alternatives.
• essentially, the culprit is thirty years of on-going deregulation and lax over-sight governance of financial institutions [and, shame on us, we've always known that bankers can't be trusted].
What I didn't find [my purpose for attending] were answers as to how to hedge my businesses.
Enjoy your weekend and you had better pray for some luck!
A
I think we are on the brink of a Depression and I hope we are all ready.
Mom
We have a 401 K, but not a big one. We will be dead at retirement time anyway. It won't be too much different than normal, though.
Today the market has rebounded to about where it was before. Now it is just the govenment that is in dire straights. I think it has bought the biggest sub-prime mortgage of all. Do you think that any new regulations are going to make the government do any better?
By the way, my mortgage is with a company owned by Leman Brothers. And I am up to date.
Dad Clark
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