Comments on: Tired of the doom & gloom http://www.bluntmoney.com/tired-of-the-doom-gloom/ Thu, 17 Dec 2009 12:51:43 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: bluntmoney http://www.bluntmoney.com/tired-of-the-doom-gloom/comment-page-1/#comment-42761 bluntmoney Sun, 21 Sep 2008 16:37:03 +0000 http://www.bluntmoney.com/tired-of-the-doom-gloom/#comment-42761 JD, bad news DOES sell, but more importantly it gains eyeballs, which gains advertisers, which is a big part of what the news is about. Which isn't to say that bad news is made up or anything. But if you have a choice of saying "IndyMac likely to collapse" or "Thousands of bank collapses predicted this year! Can you keep from losing it all?" which headline do you think gets more eyeballs? I am worried about a complete collapse of the U.S. economy. Do you have suggestions as to what an individual person can do regarding that though? IS there really anything? And if it does collapse, is it going to matter if I keep investing in various funds or if I sit on a pile of dollars under my mattress? Because wouldn't the dollar be pretty much worthless if that happens? JD, bad news DOES sell, but more importantly it gains eyeballs, which gains advertisers, which is a big part of what the news is about. Which isn’t to say that bad news is made up or anything. But if you have a choice of saying “IndyMac likely to collapse” or “Thousands of bank collapses predicted this year! Can you keep from losing it all?” which headline do you think gets more eyeballs?

I am worried about a complete collapse of the U.S. economy. Do you have suggestions as to what an individual person can do regarding that though? IS there really anything? And if it does collapse, is it going to matter if I keep investing in various funds or if I sit on a pile of dollars under my mattress? Because wouldn’t the dollar be pretty much worthless if that happens?

]]> By: JD http://www.bluntmoney.com/tired-of-the-doom-gloom/comment-page-1/#comment-42751 JD Sun, 21 Sep 2008 12:51:20 +0000 http://www.bluntmoney.com/tired-of-the-doom-gloom/#comment-42751 I don't see the "doom and gloom" people talk about in the financial news. I work in finance for a large Wall Street hedge fund. I, and most of my colleagues as well, feel the media is UNDER-REPORTING the actual bad news out there, simply because a lot of it is hard to understand. Unfortunately the attitude that the news is just gloomy and thinking "bad news sells" makes people stick their heads in the sand and not protect themselves. Like tons of people who lost their uninsured money at IndyMac and other banks because they thought the failure hype was overblown - they actually interviewed people who lost their money who said things like "well I was listening to so and so on the radio who said the media is just doom and gloom but in reality the banks are fine blah blah". Morons. I know you wrote this post before the most massive bailout in history was undertook but just to illustrate what happened. The Fed, Treasury, and other top economic and banking officials held a closed door meeting with Congress and from what we know so far they told Congress that the US ECONOMY WAS DAYS AWAY FROM COMPLETELY COLLAPSING. This was not told to the public or to the media, this was a real collapse they expected and that is why the bailout package was instituted so quickly. Now the economy doesn't just turn overnight. The fact that top officials were so certain we were days away from a complete collapse tells you a lot, it tells you the so-called "doom and gloom" you're talking about was probably being too optimistic. I can tell you most people I know in my business, where we study these things intimately, have been conservative as hell with our own money because this is the worst anyone has ever seen it. I know guys who have been in the markets for 40 years saying they never saw anything this bad. Just because it hasn't effected Main Street all that much yet doesn't mean it won't, information just moves faster nowadays then credit developments take to get through the economy. Right now taxpayers have just been put on the hook for $1 TRILLION DOLLARS. But of course, stick your head in the sand and just "ignore" it. You remind me of the people who thought their money-market funds were "guaranteed". Ignorance is bliss, until it costs you. I don’t see the “doom and gloom” people talk about in the financial news. I work in finance for a large Wall Street hedge fund. I, and most of my colleagues as well, feel the media is UNDER-REPORTING the actual bad news out there, simply because a lot of it is hard to understand. Unfortunately the attitude that the news is just gloomy and thinking “bad news sells” makes people stick their heads in the sand and not protect themselves. Like tons of people who lost their uninsured money at IndyMac and other banks because they thought the failure hype was overblown – they actually interviewed people who lost their money who said things like “well I was listening to so and so on the radio who said the media is just doom and gloom but in reality the banks are fine blah blah”. Morons.

I know you wrote this post before the most massive bailout in history was undertook but just to illustrate what happened. The Fed, Treasury, and other top economic and banking officials held a closed door meeting with Congress and from what we know so far they told Congress that the US ECONOMY WAS DAYS AWAY FROM COMPLETELY COLLAPSING. This was not told to the public or to the media, this was a real collapse they expected and that is why the bailout package was instituted so quickly. Now the economy doesn’t just turn overnight. The fact that top officials were so certain we were days away from a complete collapse tells you a lot, it tells you the so-called “doom and gloom” you’re talking about was probably being too optimistic. I can tell you most people I know in my business, where we study these things intimately, have been conservative as hell with our own money because this is the worst anyone has ever seen it. I know guys who have been in the markets for 40 years saying they never saw anything this bad. Just because it hasn’t effected Main Street all that much yet doesn’t mean it won’t, information just moves faster nowadays then credit developments take to get through the economy. Right now taxpayers have just been put on the hook for $1 TRILLION DOLLARS. But of course, stick your head in the sand and just “ignore” it. You remind me of the people who thought their money-market funds were “guaranteed”. Ignorance is bliss, until it costs you.

]]> By: Mrs. Micah http://www.bluntmoney.com/tired-of-the-doom-gloom/comment-page-1/#comment-42656 Mrs. Micah Sat, 20 Sep 2008 02:22:11 +0000 http://www.bluntmoney.com/tired-of-the-doom-gloom/#comment-42656 Gosh, Julie from shorebank is plugging her bank everywhere today (not that this comment will be relevant if her comment is deleted)! Anyway, I figure if the world comes to an end or whatever then it comes to an end. But on the very good chance that things will pick themselves up, even if it takes a while, I plan to continue to invest sensibly, allocate properly, etc. Unfortunately, panic sells. My parents' investment manager actually plans to meet with them this week, my dad thinks it's to make sure they're not panicking. I talked to him about their allocation and I think it's the best they can do under the circumstances anyway. Little scarier for them, since they're closer to needing it. Gosh, Julie from shorebank is plugging her bank everywhere today (not that this comment will be relevant if her comment is deleted)!

Anyway, I figure if the world comes to an end or whatever then it comes to an end. But on the very good chance that things will pick themselves up, even if it takes a while, I plan to continue to invest sensibly, allocate properly, etc.

Unfortunately, panic sells. My parents’ investment manager actually plans to meet with them this week, my dad thinks it’s to make sure they’re not panicking. I talked to him about their allocation and I think it’s the best they can do under the circumstances anyway. Little scarier for them, since they’re closer to needing it.

]]> By: Chad @ Sentient Money http://www.bluntmoney.com/tired-of-the-doom-gloom/comment-page-1/#comment-42550 Chad @ Sentient Money Thu, 18 Sep 2008 15:58:35 +0000 http://www.bluntmoney.com/tired-of-the-doom-gloom/#comment-42550 @Bruce It is just getting started. We haven't had any real bad economic news (the majority don't understand the bad news that has come before this or there wouldn't have been so many ARMs) since this whole downturn started, other than Bear. We are just startingt to get into the meat of the downturn right now and the understandable bad news is just getting started. Merrill, Lehman, AIG...in a week's time. Now Morgan Stanley is discussing potential suitors. WaMu is on the edge of a cliff....it's just getting started. @Bruce
It is just getting started. We haven’t had any real bad economic news (the majority don’t understand the bad news that has come before this or there wouldn’t have been so many ARMs) since this whole downturn started, other than Bear. We are just startingt to get into the meat of the downturn right now and the understandable bad news is just getting started. Merrill, Lehman, AIG…in a week’s time. Now Morgan Stanley is discussing potential suitors. WaMu is on the edge of a cliff….it’s just getting started.

]]> By: Uncommonadvice http://www.bluntmoney.com/tired-of-the-doom-gloom/comment-page-1/#comment-42540 Uncommonadvice Thu, 18 Sep 2008 12:32:17 +0000 http://www.bluntmoney.com/tired-of-the-doom-gloom/#comment-42540 If you watch news channels for a full day you'd think the sky was caving in HOWEVER - money is an emotive subject and people feel strongly about the cash they've worked hard to save up. Now is the time to pay down debt as opposed to save, and anyone who has a pension should think twice before continuing to contribute. Bricks and mortar are the closest thing to a safe bet in the long term. If you watch news channels for a full day you’d think the sky was caving in HOWEVER – money is an emotive subject and people feel strongly about the cash they’ve worked hard to save up. Now is the time to pay down debt as opposed to save, and anyone who has a pension should think twice before continuing to contribute. Bricks and mortar are the closest thing to a safe bet in the long term.

]]> By: Bruce http://www.bluntmoney.com/tired-of-the-doom-gloom/comment-page-1/#comment-42495 Bruce Wed, 17 Sep 2008 21:34:41 +0000 http://www.bluntmoney.com/tired-of-the-doom-gloom/#comment-42495 Chad - It isn't getting started its been going for over a year, it is just now starting to hit home more. Ken and Ashely - I agree, unfortunately bad news sells. Makes me wonder sometimes. Growing up I can remember hearing good news, nowadays, not so much. I am like Matt, I to have started to ignore all the hoop la, the truth is out there we just won't hear. Great post. Chad – It isn’t getting started its been going for over a year, it is just now starting to hit home more.

Ken and Ashely – I agree, unfortunately bad news sells. Makes me wonder sometimes. Growing up I can remember hearing good news, nowadays, not so much.

I am like Matt, I to have started to ignore all the hoop la, the truth is out there we just won’t hear.

Great post.

]]> By: Matt http://www.bluntmoney.com/tired-of-the-doom-gloom/comment-page-1/#comment-42493 Matt Wed, 17 Sep 2008 20:29:13 +0000 http://www.bluntmoney.com/tired-of-the-doom-gloom/#comment-42493 I'm getting sick of the bad news hype myself - how many times can the sky fall in one week? IF you're worried about your money be cautious if you're adventurous then look for a great deal. When the markets are down is when smart people make a killing. I've started ignoring the general hype about the markets... there's too much stuff to sift through to get to the truth. I’m getting sick of the bad news hype myself – how many times can the sky fall in one week? IF you’re worried about your money be cautious if you’re adventurous then look for a great deal. When the markets are down is when smart people make a killing.

I’ve started ignoring the general hype about the markets… there’s too much stuff to sift through to get to the truth.

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