Thursday, August 4, 2011

You And Me And The Stock Market

Okay, I don't know a whole lot about the stock market, but from history classes and news articles and of course from the movie, Wallstreet, I have a basic understanding. This is my understanding, that the majority of the money we "see" in the stock market is soft money. Oh, I know...soft money means a type of political contribution that can't be regulated because it, ahem..."builds" the party. So, why am I using that term with the stock market?

The stock market contains whimsical money that builds the nations' economy. Sometimes it has a really awesome building effect while at other times it has an extremely damaging effect. Like it's having today, with a 400 point drop...people, according to one news source...are already throwing in the towel and moving their money to safer areas, such as bonds.

And then we have been having this whole debt debate thing going on over in Congress for quite some time. Shut it down, start it up, compromise... whatever. I know what's really going on, and knew it before I read Robert Bowden's article, but I'll let him say it for me:

"Instead of trying to reach consensus, political leaders are posturing for their re-election and increasing book sales."

I know what you, the average ordinary non stock market guru is saying..."this is not going to affect me in the least. I will wake up and do what I do, go to work, get paid and pay the bills." I think that's a HUGE misconception, because it will eventually affect YOU! If you remembered correctly, I posted a nice little proposal for a flat tax. I got some positive feedback, so I started emailing my plan to all my elected far, no takers.

But here are a few things that all of the above will have to do with the average person:

1. Higher interest rates, less loans
2. Delayed Government checks, except for Congress (there's a law that protects them)
3. Government offices will be closed and some employees on leave
4. Finally, with access to capital(money) being limited; layoffs are on the horizon and costs/prices will increase

What are we going to do? I don't know yet. I have to give this some thought, but I'll be sure to let ya know what I come up with.

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