Fratboy Dishes Out the Truth on the Economy

06Oct08

In liu of recent events I thought I’d share my take on the faltering US economy:

$700 Billion Bailout – Great

The government is bailing us out. Yes, even you small business owners who are complaining you didn’t get a $700 billion rescue package. You see, when the big banks can lend it lets you take out more loans to expand/grow your business. When you grow your business people will buy your products. It’s a chain reaction. Stop complaining.

Huge Portfolio Losses – So What

Are you in your twenties or thirties and worried that your portfolio has dropped by 25%? If you haven’t started investing are you worried that “now is not the right time to be buying?” Well you’re wrong. The market won’t be stuck like this forever. Buy as much as you can now so that you can offset your loss in later years. Those who are stressing have a very short-term view, that is not the right approach to investing. Stop complaining.

Real Estate – Bust

The only folks who should be complaining right now are the ones who rode the real-estate train and bought second homes as “investments” on an adjustable rate mortgage or a really bad loan. If you can’t afford it, don’t buy it. I’ve mentioned before how illiquid real estate is, and should be bought for living purposes. I genuinely feel sorry for those who truly lost their homes however. To all the greedy ones, stop complaining.

The Market is Unpredictable

Buy now, buy often. You can quote me on that. The American economy is too strong and too valuable to go under. We have seen and withstood recessions before. The media loves to hype so rage against the machine. Work hard, play hard. Fratboy out.

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Tags: bailout, bofa, citi, dow jones, economics, economy, equities, funds, hedge, investing, mutual funds, rescue package, stock market, stocks, wachovia, wellsfargo