Trying to understand the economy
My husband is a financial consultant and adviser for a very prominent company. Understanding and evaluating the economy is at the core of his job.
I try to avoid discussing these things with him. It is an incredibly stressful job, and I want him to be able to be able to relax when he comes home.
But since the current economy affects all of us, we discussed it on Monday. How it affects us, and all of you. Keep in mind that these thoughts come from a fairly conservative Orange Country Republican.
Our government has screwed things up, almost to the breaking point. No, NOT just the White House. The Congress has a pretty large hand in it as well. We have gone through countless years of knee jerk reactions to economic indicators.
The first rule of understanding and dealing with the American economy has ALWAYS been to [b]not panic![/] Long term corrections always steady out short term ups and downs. But because political leaders feel they have to react to everything (especially in an election year), there are always this stimulus packages thrown around. Which, in the long run, do more harm that good.
Sure, everyone wants $800 in their pocket. But at what cost? If you are older (say, 40-50 plus), the hurtful aspects will not affect you. But if you are younger, the deficit additions will eventually sock you where it hurts. Your investment packages and long-term savings are eventually going to crater.
Be aware of the "band aid" reforms advocated by the current candidates. Don't fool with your investments. Above all, do not panic. Plan your investments as normal.
It might not hurt to get your own financial planner. They are good people.
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Originally Posted by gabosaurus
