Michael

Hey,

That’s so true. So called “experts” are funny.
Whe the power of the internet we have looked in history about the french real estate in 1991 and a lot of previous “experts” are playing around !

zack

I’m pre-calling a Jim Cramer meltdown on Mad Money. What a loon.

nr

Between IWillTeachYouToBeRich and

http://patrick.net/wp/

I have lots of fun

TDW

I really can’t understand the panic when markets do what markets do (go up and down) except among those with short time frames. In that case, you should not be in any overly risky investment.

Also, the market makes me queasy and I can’t seem to avoid sneaking a peek now and then, even though I know it will ruin my day. Kinda like looking at a car wreck as you pass…

That’s why I stay in real estate: There’s no ticker on it to give you the willies at times like these! TDW

Rob

Agreed, naysayers should shut their yap. I’m not worried about going bankrupt – if anything this will play out as a very good opportunity.

But that still brings up a big question. I don’t think I need to pull out all my money now to keep from losing it all, but it does seem that this is a position where the market is going to continue down for at least a couple more weeks, almost without question. Given that, wouldn’t I still be better off selling right now, holding till Feb, and then buying back in even lower?

ericabiz

My favorite was the recent Kiyosaki article (as seen on quote.yahoo.com) : http://quote.yahoo.com/expert/article/richricher/62341

He is the EXPERT at saying absolutely nothing.

He says: “Back in the 1990s, every time I had some extra cash I would buy some gold or silver.” Ok, first of all, “Rich Dad, Poor Dad” was not released until 2002. We all know he wasn’t rich until those books came out. Secondly, gold was a poor investment and underperformed the market throughout the 1990’s! What a crock. The sad thing is that people buy it and do whatever he does. I think the best Kiyosaki strategy is a contrarian one – do the OPPOSITE of whatever he says. He says “don’t buy gold now” – that’s as strong of a “buy gold” indicator as I’ve seen in a while.

matt

I’m loving this… I feel like Eddie Murphy and Dan Akroid at the end of “Trading Places”…
Just sitting here, waiting to “buy, buy… buy” during this panic.

zack

Now for some good financial advice:

http://www.cnbc.com/id/15840232?video=626633432&play=1

Eric

@ Mike McHugh

That’s because the majority of the media and pundits have a vested interesting in pushing their political agendas (which is mostly to paint the current administration in as poor a light as possible) and to increase their ratings and circulation numbers by selling fear.

Then again, they may be part of a massive conspiracy to drive down the market so their cronies can buy in on sale.

Ignore these kooks. Ramit has one of the best attitudes that I’ve seen in the blogosphere regarding these nutcases.

JT

The comments are funnier than the post. I missed Mad Money…did Jim Cramer have a meltdown? I can only imagine…

And I loved the person who advised investing in condoms…lol…

Thanks for the great comments, it put a smile on my face…especially on a day where I ran some rough numbers for my taxes this year and realize I might be “AMT”ed…arrrgghhh!

James Urquhart

I’m pretty much a complete novice when it comes to the stock market and investments, so all of this advice is going in one ear and going out of the other.

*phew*

Some Thoughts on the Stock Market, the Federal Funds Rate, and Economic Stimulus ∞ Get Rich Slowly

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Is Gold Bad?

Buying gold when it was less than $300 an ounce was a really great deal. I know mocking those who say that is a great sport, but they have been right for the last 5 years. It may not continue up as sharply, but then neither may the stock market. The market also has its times of staying stagnant for many years….

Prashanth Ganapathy

While I agree to an extent with you about the MSM going haywire with their predictions, I would have liked to see you put your perspective to the mess we are in.

Housing >>>>> Financial >>>> consumer >>>>>> all others follow.

Is this the way we are supposed to live? In constant doubt and uncertainty??? Why is this country pouring money outside when it doesn’t have money of its own? (Trade deficit, Budget deficit, trillions in debt)

How can the presidential candidates say they are going to solve problems like health care and illegal immigration without talking about reduced spending? The price oil actually hasn’t gone up but the currency has inflated its price.

Yea and thats how the cookie crumbles, first the royally stupid, unnecessary, and unaccountable FED will pump more money into the market with low % rate, then CPI goes up and then they have no choice but to tighten up the market which throws the market into a bigger recession or we become Japan and live in shit-land for 20 years.

The FED and other such agencies were put in place to keep a check on free market and the state of the currency. Their job description is simple.. Heat the market or cool it down…
The skill level here is to make sure we don’t hit super lows and the common man can live without fear of losing his job, his money and his life…

But do they do that?

No, they let lenders like countrywide give shitty loans to people who cant afford them, using automated underwriters who qualify them for a house in 30 seconds, so we have to see this day.

If they are not capable of providing this security then they should be held accountable.

The media says a lot of things. Its up to you to find out what is actually going on and why we have to put up with this every few years.

Reuben

Prasanath – I’m not sure I like your comment, “or we become Japan and live in shit-land for 20 years.”
I hope that I am misunderstanding you and that you are talking about the Japanese economy over the past 20 years, and not living in Japan, which by every measure I read is one of the most pleasant places to live in the world (even more so if you’re not Japanese).
I know their economy has sucked, but for a great many people living there now is even more paradisical than it was before (partly because of the deflation) and partly because it is a lovely place to live.
Hope I was wrong about your tone.

Prashanth Ganapathy

Reuben

I was talking money the entire time and referring to the japanese economy. Since you have brought it up, I would like to add that japan could still do well for itself even through 20 years of recession because their economy is very limited and well defined with few moving parts. However the US economy has too many moving parts and can very different effects than what happened in japan.

Prashanth

Mike

@ Reuben,

I’ve lived in Japan for a little over two years now, just south of Yokohama (which is just south of Tokyo). Economically, the country is still in shambles. Interest rates are incredibly low, so low in fact that I know some folks with 1% rates on mortgages. The larger problem, though, is that the personal savings rate here sucks. The average Japanese consumer is up to his/her eyeballs in debt. Prices are extremely high and the social norms (and some laws) basically force people to continually spend beyond their means. It’s not uncommon for a brand new driver to get a 10 year car loan, even though the average Japanese buys a new car in less than 5 years because of the high taxes imposed on keeping a car any longer. Home loan terms can range from 40-60 years as well, especially in and around the major cities. The average salaryman works 10-12 hours a day or more and earns squat compared to his western counterparts.

You’re right about certain elements of living here, especially for foreign males. The people are generally helpful and courteous. Crime rates (actually reported) are very low. The food is delicious and the public transportation system is top-notch (albeit expensive).

However, there are negatives as well: because it’s such a homogenous society (99% of inhabitants are Japanese), there’s rampant racism against foreigners – despite being courteous, there is an underlying “tone” that we’re all inferior. Even hafu (half-Japanese) kids are considered non-Japanese because of their tainted blood. Sexism is astonishing – women are second-hand citizens… ironically because the mothers here teach their sons that they are the center of the universe, which only continues the downward spiral. People that fall outside of the “median social norms” are basically outcasts. Physically and mentally handicapped folks are “hidden” from the rest of the society. Elderly (especially women) are neglected and many have recently died because they have been refused acceptance at hospital facilities. The sex trade here is alive and well, often through the trafficking of very young women or girls from poorer parts of Asia – and is relatively ignored by the government officials (except for those that frequent the establishment, but that’s not fixing the problem). Marriage here is a business contract and not much more – the western idea of “cheating” on one’s spouse is not considered a second thought here.

As a reasonably young foreigner male, the only really negative experience that I’ve encountered is the racism. Many of my single American friends have had no trouble getting dates with Japanese women, who more often than not prefer Western men because we (and I quote) “treat them nicer than Japanese guys do”. I’ve seen many a Japanese woman become “tainted goods” to Japanese men because of a prior relationship with a Westerner, though. There are numerous restaurants, bars, and clubs that are permitted to hang signs that say “Japanese Only, no foreigners allowed”. My son has been called the English equivalent of “gross, nasty, disgusting, or stupid” foreigner on the playground by Japanese children under the age of 5 (these kids must be learning that foreigners are bad somewhere… my guess is at home) for doing nothing more than asking if they want to play with him – even when he asks in Japanese.

In short, Japan – like anywhere else – has positives and negatives. Anyway, didn’t mean to hijack the comments. Just thought I’d share my 2 cents.

Mike

@Shane, funny you mention it. One of my coworkers just moved from Korea, having lived 3 years in Seoul. He shares your sentiments.

@Gayle, my inquiry wasn’t out of concern, more just general curiosity. I incorrectly inferred from your initial post that you had developed a “time the market” approach with your entire investment portfolio instead of playing it both ways as you mentioned in your reply. I always cringe when I see and hear of people trying to time the market regularly and on a site like Ramit’s where the target audience is the youngins, I wanted to get my two cents in about the old buy and hold strategy. Having re-read my initial post, I probably should have had a second cup of coffee before replying.

Why We Worry » Blog Archive » Wednesday Midweek Roundup Vol. II

[...] The worst financial advice from around the web! A funny round-up by Ramit on the doomsayers of our new financial apocalypse. No need to rush out to your bunkers yet folks. Palestinians rush into Egypt through wall breach I guess not everyone is too happy about that new government in Gaza [...]

Richard Spicer

I believe the reality is not “kooky” Doom and Gloom, but instead that the United States has slipped from a leading world power to a 2nd class country. We’re no longer number 1 and with the way our education system and financial prowess as a country is we won’t be for a very long time.

We’re now about on par with New Zealand and Canada. The good news in this is and will continue to be a transfer of wealth between the Middle Class and the Upper Class. We’ll see more people who know how to manage their finances poorly slip into the lower income area and the people who know how to manage and invest will grow into the upper class. ( This is good news for you Ramit, and good news for me too) Kind of like we see in other countries such as India and China. A small but very rich upper class and a large lower class.

If you look at states that have had … near economic collapse, like Michigan you’ll get a better idea of what I’m talking about.

A lot of people live the type of lifestyle they do, largely financed on credit. As credit becomes harder to get and variable rates for debt increase, we’ll see a crappier type of lifestyle in general. But it’s not the end of the world.

Richard

I disagree about precious metals. You’re looking at it like a trader would look at it. Precious metals store wealth, They’re not an investment as they don’t pay dividends. The growth in gold’s value reflects the growth we’ve seen in commodities across the board. An oz of gold has typically purchased the same amount of Crude Oil through out recent history. I believe that the value of gold and other precious metals is finite and it is the price of currency that changes, as gold holds onto it’s purchasing power. Gold is where you want to keep your emergency fund, especially if you’re afraid of putting it into a failing bank. It’s not a place to grow your money.