The one that was a comment at the Anvil Tree
This was actually a response to a post over at The Anvil Tree, but when I was done with it, it felt more like an entire post then a reply. So this is in response to This.
Cliff notes; Economy sucks
The really scary thing is that despite what people keep saying, I really don’t think we are close to the bottom.
Speculative lending practices and inflated house prices led the need to increase interest rates. Corporations started defaulting/failing.
Inflation leads to lower value American dollar, Fed ups the prime lending rate to compensate, slow spending, stabilize the dollar. Interest rate goes up mortgages go up and people default, and the cycle starts all over again.
I’ve lost 21% of my 401K so far this year, 7% in just the past WEEK! I am hemorrhaging money, but I have30 years to catch back up, God save the people that are close to retirement and taking 20-50% hits.
I make 6 times as much as I did in Huntsville, my car is a little nicer, the place I live is a little bigger, but my spending money isnt anymore then it was back then, if anything its gone down.
70 dollars for a tank of gas I could accept this if I could be offered a good explanation, but with oil company’s reporting record profits, and the price of a barrel of oil changing wildly as the price of a gallon of gas climbs to new highs…
I can hold on till November. …if McCain wins I’m moving to Canada…
You are all welcome to join me! (Free health care!)
