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I have had several people ask what changes are we making in our household since the economy is down and out. I showed my husband the video that was posted about the collapse of the U.S. dollar. It almost gave me a heart attack too,Yana.  

He is a banker. Pretty smart guy. He sits in alot of Big Company boardrooms across the country and people have listen to his advice and they are glad they listened.

I asked him his thoughts. OF COURSE, he talks like a banker. I am not. I hope my words can relay what he has said. These are his thoughts.  

The  United States Economy is in a very precarious situation. BUT, so is the rest of the world.

This is a World Economy we live in and not just a United States Economy.

Yes, I believe that there is a very slight risk that the U.S. dollar and the U.S. economy will ultimately collapse.I believe we are in for a LENGTHY recession. The things the government has done lately are helping but we will have to get this economy back on it’s feet. THIS WILL TAKE SOME TIME.

 We need to plan for spot shortages of commodities as we saw in the Depression.  

I do not believe Hal Turner and his plan is the answer.  I do not believe Hal Turner. IF the U.S. Economy and the U.S. currency goes away then those countries that hold U.S. dollars will also be devastated and THEIR currencies will be worthless also. I believe the risk of that happening are slim to none.

Just the past month you have seen the U.S. dollar strengthen against all the word wide currencies.

We have to get our arms around the federal deficit. What has happened with the so called federal bail out could turn out to make money for the tax payer if we can turn this thing around. The purchase of the so called sub prime mortgage backed securities is just that. These securities have some value. The delinquency rate of these mortgages are 7%. Losses may run higher because of the reduced value. However paying 60 cents on the dollar should not mean much of a loss to the government once they collect out of these mortgages. The loans to the banks are really an issuance of 5% preferred stock for 3 years. If the stock is not repurchased in 3 years the rate goes to 9%. Therefore all of these banks would have to fail and not be able to repay the government for this to cost the taxpayer a penny. Not a very likey scenario.

There is a risk in our economy today. It is serious. BUT, we need to keep our heads about us. I am not impying we bury our heads in the sand, Just be sensible.

Let’s work with our elected officials and HOLD THEM ACCOUNTABLE for being fiscally sound. Let’s work hard to get this economy turned around.

What got us here today was not terrorism, not the war in Iraq, it was GREED pure and simple!!! What the terrorists could not do, we did to ourselves. We need to make smarter investment decisions.

In our household. My husband has taken the majority of our money out (401) of the stock market right now and has it in a money market account. He did that in January of this year . Thank God he did  that. We lost but we could have lost so much more.

We have cut back on spending. Eating more at home. Some of the places we were eating would add up to a week’s worth of groceries at our house.

We are stocking up on goods. It is better to be safe than sorry.  

As Don said we are just making better decisions. I do believe the Lord will take care of us. But, the Lord also gave us common sense.

Lastly, as we all already know... GET OUT OF DEBT!!!!!



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Member Comments

    • 0 votes vote up vote up

      Cynthia Schmidt wrote Nov 2, 2008
    • Darla, the more I read your posts, the more I like the person you are. Thank you for asking your husband about this and sharing his knowledge with us. I so agree with you about greed. Just look around us and see the selfishness there. It’s so sad. The change really does have to begin with each of us.

      Thanks



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    • 0 votes vote up vote up

      Raysa Santana wrote Nov 2, 2008
    • In my house we also stopped eating out. My husband and I don’t like credit cards, so we have no credit card bills.  I’ve also looked at cutting our expenses in our food bill by clipping coupons and buying the brands that are on sale of the items we need.  Another thing I do is every morning I shut my water heater off and turn it back on 1 hour before everyone starts showering.  I’ve replaced all our light bulbs with the new energy efficient ones, and I go around making sure we have nothing plugged in which might be still using electricity.  I’ve already noticed a difference in our bill since I started doing these little things.  

      We also looked at our cable/telephone/internet bills and called the company to see how we could lower our bills.  We did the same with our cellphone provider.  

      For Christmas we decided to splurge on the grandkids, but everyone else was getting “a little something“.  We tried to keep it under $15.00 per person.

      I hope the above is of help to someone.

      Regards,



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    • 0 votes vote up vote up

      Bobbi Bacha wrote Nov 2, 2008
    • Well since Ike I was forced to eat at home, as resturants are just really begining to open, I still go to ladies Tuesday Tea, though.  

      I always cook every evening unless and event, but staying home, staying busy with organization, shopping economicallly, (Ross, TJ MAx, Marshalls, Target).  I only got to Dillards or Macy’s for make up or if I have an event.

      Dont forget Ebay has great buys.. I ordered my mahogany hangers there.

      Jackie paying cash for a car is best.  I have my pt cruiser in garage, paid for and she only has 24k miles on her.. and she is my back up car if economy gets bad.

      Due to storms I stay stocked on food.  I have cans in order and if I use 2 I buy 2, same with meats.

      During Ike I was able to feed three families and friends for over a month with my stock.  

      Love all the ideas, and coupons.. I almost forgot about those.  Ill get my scissors.

      Nice post Darla.



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    • 0 votes vote up vote up

      Bobbi Bacha wrote Nov 2, 2008
    • Wow mrslorid, great idea.



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    • 0 votes vote up vote up

      Beverly Mahone wrote Nov 2, 2008
    • This is one time I am soooo glad I listened to my mama (because there were way too many times when I didn’t!)  My mother used to tell me that if I couldn’t pay cash for it—DON‘T BUY IT.  I grew up with that mentality.  It wasn’t until I got married the first time that I discovered the world of credit and my ex was really into buying on credit.  We lived lavishly but deep in DEBT.

      My new husband thinks like I do.  He is very mindful of our spending and we make every effort to pay CASH.  Credit is an absolute LAST resort.  I’d rather go without than to dig a deep hole I can’t see my way out of.

      One other thing my parents used to say:  If you don’t have much, you don’t have much to lose.  That’s why I value whatever little I may have.



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    • 0 votes vote up vote up

      Darla5 wrote Nov 2, 2008
    • Hey Girls... great comments.

      Ms. Jackie, I saw where Annie posted where to look for the stock up items. I also googled it and found a great list from different sites.

      I am no extremist by any stretch of the imagination but I do believe in being prepared. We are going to Costco this afternoon .

      Also, as far as the 401 question. Don moved the  money around early this year before the market really went down. He took 3/4 of our 401k out of the market and placed it in a money market account with Goldman Sachs. For many reasons ... think of this...If Warren Buffett can put 5 BILLION dollars in Goldman Sachs, they have to be pretty
      sound. Buffet is a pretty smart guy.  

      My hubby is watching the market carefully. Who knows what it will do. He is not comfortable getting back in it yet. He is looking very close at buying more BBVA stock and buying stock in US Steel.  

      I love reading all of your ideas.

       Oh, and Bobbi, what an angel you were to be able to help so many for a month. We cannot out give the Lord. He will bless you with so much more.

      BabyBoomer...Momma’s right. Thank God for Momma!!!

      Chocolatier- Thanks so so much. I am so glad your back.  

      Annie- words of wisdom. I can always count on you.

      Gotta go to Costco!!!



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    • 0 votes vote up vote up

      Beverly Mahone wrote Nov 2, 2008
    • Annie123—

      LOL!  I forgot about that one—but that’s a lesson I learned from a man—-who was a really, cheap date!



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    • 0 votes vote up vote up

      Darla5 wrote Nov 2, 2008
    • MrsLorid and Raysa- great ideas. - Always looking for ways to save money.

      MrsLorid-there is nothing like homegrown vegetables.  

      Bye Guys... Gotta Go!



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