So follow my math here:
Housing bubble will possibly burst next spring
Oil prices continue to rise (Thanks Katrina!)
Unsecured consumer debt is at an all-time high
+ Banks to double the minimum payments on credit cards in Oct.
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A Really Ugly Situation
See? I'm not too terrible at math. You just gotta know when to carry the twelve.
I can't forecast the markets, I'm just a normal joe, but it's a bit worrisome.
My advice is: get your stuff in order. I'm getting an ugly vibe, and I've been my luckiest when following my nose. Build up some savings. Make some preparations. I don't mean digging out an underground bunker and hoarding consumables, but expect some serious economic distress to come down within the year. If you're overextended in your spending, make some changes. If your investments are starting to smell funny, think about moving them into a more secure vehicle.
No one's paying me to say this, I have absolutely no incentive to share this stuff.
Preparing for the worst can't hurt. I've got 10 bucks that says it's gonna get ugly in about 6 months.
1 comment:
Quick qualification.
Of the four factors I brought up in the equation, there's only one that I think is not a good thing.
The housing bubble will end overspeculation - a good thing. Oil prices will increase, which will hopefully promote more conservation and efficiency - a good thing. Credit card minimums will not only drag people kicking and screaming from their overconsumption-riddled lifestyles, but it will discourage folks from borrowing more - a very good thing.
Only factor #3 is a negative. Those who are unwilling to change their lifestyle are going to have some strident growing pains.
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