Ronald Reagan on Government's view of the economy

"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. "--Ronald Reagan

Is the Economy really that Bad - Part 2

Last month on Oct 22 I posted comments on this subject. With the complexity of US and Global economy, confusing news reports about the nation's, and even the world's, financial health is something we should all get used to. Yesterday the Dow was up almost 600 points, while this morning as I write it is down over 150 points. With all of the volatility it is more important than ever to get back to the basics. Make sure your have a some liquid savings for emergencies and continue to invest for the long term. Just listen to Dave Ramsey and you will understand what I mean.

However, despite plunging home sales and prices, the world is still afloat in liquidity. That is why interest rates are still the lowest in 50 years. This means that, unlike the Depression, there is still plenty of money available for investments and having a very high standard of living. Actually now is the time when individuals can take advantage of great deals on foreclosed real estate properties and low stock prices.

Over the last 10 years the rise in home prices can be attributed to how easy it was to get more money than you needed to purchase over priced homes. Now money is not going into mortgages and other loans because banks have tightened their credit restrictions, and loans are really hard to get, even for good borrowers. Although this is temporary, it continues to strangle the real estate market. The huge "Congressional Bail Out" may help to break up the log jam of tighter credit markets. We shall see how this works out.

What does this means to me on a local level for my family and friends here in Nashville TN? Although the economy is not heading towards a 1970's style stagflation, the conditions are right for slow growth (1-2% GDP) and relatively high inflation (3-4% CPI) for the foreseeable future. The best way to prepare is to reduce your debt, downsize your lifestyle, save as much as possible and keep your retirement savings in a well-diversified portfolio that includes overseas funds.

Warren Buffet said "Be Fearful when everyone greedy and be greedy when everyone is fearful. " Warren Buffet said "Be Fearful when everyone greedy and be greedy when everyone is fearful. "

Will the Economy Slow Down Mobility Sales?

As a Mobility Consultant with AT&T I have seen first hand the scalling back of IT Budgets, but many companies are taking a new look at cutting costs with a mobility solution. It could be as simple as email access on a Blackberry or Signature Capture for Proof of Delivery application on a Tilt. The global financial slowdown may cause the cell phone market to grow at a slower rate than expected, according to forecasts from UBS and JPMorgan. However AT&T has continued to grow compared to Sprint losing 1 million customers last quarter.

Obama looks to become next President

Ok now what. Will life really change that much for me. We shall see.

Oh well, I'll still get up in the morning and go to work like normal. I need to run for office. I am concerned for the kids and what our country will be like in 30 years.

Is the Economy Really that bad

Listening to the major news programs like CNN, NBC, CBS, and other major network media one would think that the US Economy was going to crash and create a major global depression sending the entire world into a downward spiral.  While in school at UT, I major in Economics and it has always been a interesting how capitalistic markets respond to major shifts in the equities markets.  Last week while sitting in the parking lot of Walmart I noticed a lot of people coming and going in and out of the store and did not appear from what I saw that day that people were worried about spending money.  

The cover on the TIME magazine last month showed a soup line from 1920's during the great depression which sometime pictures can create a perception of things that are not really true.    I wished they had instead used a picture of people standing in line at an Apple Store for the new 3G iPhone.  I witnessed this myself at the green Hills Mall in Nashville Tennessee last month.  This was 3 weeks after the new iPhone was launched and their was still a line of people wanting to purchase this new phone.  Now if the economy was so bad would you see people standing in line for a cell phone?  

Unfortunately the national media has made this slow economic time seem even worse with the constant news of how bad things are.  Yes it is bad for many people who have lost their jobs and others who are having trouble making mortgage payments on their ARM's.   I wish the major news media would be more positive in their reporting.