For a good deal, timing is everything, as is the desire (desperation?) of a dealer to sell, whether a tv he's paying interest on to the bank(?) to carry his inventory, or an Airstream. My wife and I have quit buying anything not essential, and are busy paying off all debt. Things are going to get worse.
Paying off debt is very wise, especially if you don't otherwise have the immediate ability to do so should everything go to hell in a handbasket. We believe that having good, established credit is a very important life tool, but also that you MUST live within your means. Credit checks have become aroutine part of employer pre-screening.
There is an excellent book out there entitled "The Millionaire Next Door", which every adult should read. Many good tips on handling your own money, how people amass real wealth, etc.
There is another angle on this business. If you follow the financial news you know the stock market is way up on reports of large profits by banks and mortgage companies. Thanks to the way they have been screwing their customers with record high interest rate spreads (meaning, they are borrowing for 2% or less while soaking their customers with high interest rates).
Experts say this rise in stock prices is bogus because the banks are still broke and the assets in their vaults are still worthless. One quarter's profits mean nothing when they are bankrupt to start with.
This may be one last attempt to juice up stock prices so the big boys can bail out before the market collapses completely.
So if you have any money in the stock market this may be your last chance to get out and get the cash. You have been warned.
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Living in the trailer park of sense, looking out the window at a tornado of stupidity.
One of the reasons for the rise in the stock market is the US accounting board relaxed the mark to market rule. Mark to market means assets have to be valued at their actual value instead of some hoped for value. The banks put great pressure to get this done. On paper it looks like a compromise, but looks to me to be full of loopholes.
So the US banks' financial statements look better, but they aren't. Does this feel familiar? Because it makes things look better, people are more likely to buy stocks. This is all messy, but it does appear things may be getting a little better, though job losses and dividend suspensions won't stop for a while.
Note that in the past month when the market has gone up, trades have been much higher than on days when it has gone down. This is the reverse of what happens during a downward period. No one can say what will happen in the future—is this a dead cat bounce or the beginnings of a long term market recovery. If the latter, getting out now will mean losing money for most people.
I don't know that the NYSE has had a complete collapse since it started under a tree in the 18th Century. That would mean the total collapse of just about every corporation with publicly traded stock and perhaps dissolution of governments. Then all that money taken out of the markets would be worthless and trade would cease. Gold would drop too. Bartering would be the only way to survive. I don't think that's happening.
It may not have collapsed in the last year and it may not have collapsed in 1929 - 1932 when the Dow lost 80% of its value. But I'm glad I went to cash last fall. And I'm not planning on getting back in till next year or until the bezzle is out of the market.
My guess is that this is a bear market rally. It may end Monday or it may go on for a few more weeks but I will be the most surprised guy in the world if the averages don't test the lows before fall.
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Living in the trailer park of sense, looking out the window at a tornado of stupidity.
I don't want to jack the thread any worse than it is but everyone should be aware of this.
During the first part of the year AIG unwound a lot of trades, buying back whole portfolios from the banks at very generous prices. Some big banks got a windfall of a billion dollars.
This has made their balance sheets look very very good. Of course this is a one shot deal.
AIG only did this because they know that no matter how much money they give their friends, or pay themselves in bonuses, or blow on champaign and caviar, the government will cover it with your money.
One more reason the banks and the stock market are not as healthy as they look.
If you look behind the big con job, you will see some truly frightening things. The stock market still has a long way to drop.
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Living in the trailer park of sense, looking out the window at a tornado of stupidity.
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We believe that having good, established credit is a very important life tool, but also that you MUST live within your means. Credit checks have become aroutine part of employer pre-screening. 
Any room in the trailer park? 
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