Is the economy a perfect storm? Should we get out of stocks, mutual funds, maybe even the dollar,

[raccoon]

and get into euros?

I’m not an economist, financial advisor, or anything like that. I admit, I’ve always been waiting for the other shoe to drop. But the economic situation now looks like a perfect storm. The dollar is way down. The US is WAY in debt, and so are many of its citizens. The housing bubble has popped. The government (i.e., we taxpayers) will bail out Fannie Mae and Freddie Mac. GM is in deep doo-doo. Is the government going to bail them out too, as it did Chrysler? Are FDIC and the Pension Benefit Guarantee Fund going to need bailouts too? Who else is going to need a bailout?

The price of oil is through the roof, and not going down. The ripple effect is hurting nearly everyone. Whatever the OFFICIAL inflation stats that come out in the coming months are, anyone with their eyes open will know they’ll be even more understated than they ordinarily are.

Of course economists and pundits aren’t going to say how bad things really are. They’d be unemployed in a minute if they did. This isn’t your run-of-the-mill recession.

Everything is so de-regulated now, and it seems there’s one bubble after another. I’m just scared us little guys will lose whatever little we do have. I keep thinking of Enron and of how brokers and financial advisors lied through the teeth to their clients about stocks that were real dogs during the tech stock run-up.

Your thoughts?

[scheming daemons]

1. As a novice.... explain to me what one does to "get into Euros"

Does that just mean buying foreign stock?

[raccoon]

2. I meant, take your money and convert it into euros.

Not your everyday money for groceries and stuff, but money someone might now have in stocks, bonds, etc.

[bemildred]

4. One can obtain foreign accounts denominated in foreign currencies.

It's not very difficult either, but there are reporting requirements.

[Cary]

3. Diversification is always a good idea. n/t

[Romulox]

5. No day trader, but isn't buying into the peak of the market exactly the OPPOSITE

of what you want to do?

Buy low/ sell high. You have to look for undervalued assets to invest in to make money. If you think the Euro is currently undervalued, then it is a good investment.

My feeling is that "little guys" will lose their shirts engaging in currency speculation.

[Lance_Boyle]

7. Euro right now at record high against the dollar

not that it can't or won't go higher, but this is most assuredly NOT a good time to exchange dollars for Euros, whether in "the market" or on vacation. ;-)

[Name removed]

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[raccoon]

9. I'm wondering not so much about trading, but about not losing what little

I have if everything falls apart.

[readmoreoften]

10. People said gold was ridiculously overvalued at 300 an ounce a few years back.

It's up to something like 900 an ounce. These are extraordinary times.

[Romulox]

12. That's not a good argument for buying gold TODAY. nt

[Selatius]

6. I believe it will get worse, but not until 2010 or later.

The Iraq War and the following deficit spending will continue well into the next presidency. That will continue to drag down the US Dollar, but not even the US Dollar can withstand unlimited abuse. At some point, it will break down like any other nation's currency under such irresponsible deficit spending.

The biggest caveat I add to my message is that this could all come much sooner than that. If there is a major conflict with Iran, the US economy will suffer oil price shocks with the Hormuz Strait being impassable for oil tankers for the duration of the war. All oil tankers leaving the Persian Gulf must leave through the Hormuz.

For all we know, a war with Iran is only several weeks away.

[NC_Nurse]

8. It depends on how soon you need your money. I'm holding mine since we are

heading DOWN right now. Buyingat the low is always better than selling at the low.
I don't need to retire anytime soon though. Also, I have rental real estate too, since
I don't trust any one vehicle of investment. I didn't buy property to turn a quick profit
either, I don't know enough about that business to be comfortable doing that. A lot of
flippers are getting caught in this downturn too.
I'm hoping in the long run I'll come out okay. Not rich, but okay.

[Yavin4]

11. Depends on the Election

If Obama wins, he will balance the budget, pull back in Iraq, and strenghten the dollar. Confidence in America worldwide will soar, so the Euro may not be the best bet a year from now.

If McCain wins, then we will have hyperinflation because he won't balance the budget, and he will start a war, unilaterally, with Iran which will become nasty and dangerous over the long haul. So, the Euro would be a safer bet, temporarily because we will be in a global depression.

In sum, Obama wins, and we climb out a hole. McCain wins and dirt will be shoveled on us in the hole.

[Virginia Dare]

16. That's exactly why I'm hunkered down and prepared to wait it out..

at least until November.

If McCain wins, all bets are off. Basically I'll be looking for a secluded cabin out in the woods somewhere in that case waiting for the nuclear fallout...:scared:

[Extend a Hand]

14. we did gold, commodities, and

some us cash and some foreign currencies. the only stocks we have left are rail, utilities, shipping, bullion holding companies a bear mkt mutual fund, and some alt energy. It's scary right now.
:scared:

[Javaman]

15. Buy nuts, bolts, nails and screws...

they will be the next type of bartable income.

Gold will eventually become worthless as people realize 1) you can't eat it, 2) you can't build with it 3) you can't water your garden with it.

However, things will break down and people will need to repair things. Those items will become priceless.

[Virginia Dare]

17. Gold has always been a commodity primarily to the rich anyway...

it's never served the poor very well.

[slackmaster]

19. I sold most of my gold and silver around March 7 for a nice profit

I had held it for more than 20 years.

[Virginia Dare]

20. It's always nice when that happens..

I rolled most of my funds into inflation protected bonds about a year ago. Hopefully I can ride this out for a while. If everything tanks, we're all basically fucked so it won't really matter.

[Beetwasher]

23. Yep, My Inflation Linked Bonds Have Skyrocketted Over The Last Year

And I believe they will do so for the foreseeable future.

[slackmaster]

18. The time to get out of stocks and mutual funds was over a year ago

Your thoughts?

I'm staying the course. 18% of my pre-tax income is going into a mixture of investments in my current 401k. I'm buying while prices are low. I have about 10-12 years of full-time employment ahead of me.

Your Mileage May Vary.

[sinkingfeeling]

21. Didn't you hear, our economic problems are all 'mental' and caused by the media?

[hogwyld]

22. All Americans are too soft

So quit yer whinin' :sarcasm: