When Is This Bailout Going To Start Working?

[Jester99]

Please put aside the black helicopter and tin-foil comments, I want to keep this serious. Despite my comments about believing that something bad may happen to this country and thinking that economic collapse is imminent, that was purely speculation. Now that this thing has passed, things are still not looking up. Not just here in America, but all over the world. Things seem to be in a downward spiral with no end in sight. I however, am finally starting to get very worried.

My sister graduated from high school this past year and decided to start the next phase of her life in Seattle, Wa. Keep in mind this is a huge step for an 18yr old who has: moved to a brand new environment, come from the east coast, starting college, paying for an apartment, bills, ect and holding down an almost full time job. My dad and I are helping her out with extra finances but there is only so much we can do in the event that the economy collapses- banks freeze, no way to get money, and maybe even flights stop to where she can't get home...It's not like we or she has an emergency fund for this kid of thing. I love my sister to death and I need to know if we should start making plans to get her back home.

Also, my dad runs a small business with about 15 employees. What does all this mean for the business and employees-401k's, etc.?

How long does it take for things to start looking up?

 

[Wiser]

eeek. time will only tell =(

 

[FarmerMatt]

Seriously, nobody knows. Our markets are being driven by pure emotion at the moment. It looks like Europe's, & the Asian markets are in a worse state than ours. All you can do is sit back & watch the show. Europe may well be a precursor to what well transpire here, but we've got a long way to go before things even get to the Great Depression stage. Hell, we haven't even had one quarter of recession yet.

I would expect a very volatile market through the election & things will start to reveal themselves starting next spring. The best thing you & your family can do is live your life. Nothing you can do will make any difference. If you truly get caught up emotionally into this it will bring you down. Look at history. When people truly believe it's the end of the world they destroy the world around them. It's a self fulfilling prophesy. Farmers stop growing crops because they believe it's the end of the world... Than the world doesn't end & they have no food. I'm planting more crops... It's all you can do.

 

[iwannadie]

Don't Panic.

 

[PurpleCherokee]

Never.

 

[goodburbon]

bailout what

http://money.cnn.com/2008/10/08/news/companies/AIG_loan.ap/index.htm?postversion=2008100817

 

[IndyXJ]

I have over 20+ years to retire, so I'm just riding it out stock market wise.

I'm with Jester though and looking at these developments with a wary eye. These are unchartered waters. During the depression, many people lived on a farm and were self suffiicient. If and when a modern depression happens...well, I don't even want to think about it.

 

[bjoehandley]

Seriously, nobody knows. Our markets are being driven by pure emotion at the moment. It looks like Europe's, & the Asian markets are in a worse state than ours. All you can do is sit back & watch the show. Europe may well be a precursor to what well transpire here, but we've got a long way to go before things even get to the Great Depression stage. Hell, we haven't even had one quarter of recession yet.

I would expect a very volatile market through the election & things will start to reveal themselves starting next spring. The best thing you & your family can do is live your life. Nothing you can do will make any difference. If you truly get caught up emotionally into this it will bring you down. Look at history. When people truly believe it's the end of the world they destroy the world around them. It's a self fulfilling prophesy. Farmers stop growing crops because they believe it's the end of the world... Than the world doesn't end & they have no food. I'm planting more crops... It's all you can do.

Well said Matt!

 

[Ba-Riedo]

P

My sister graduated from high school this past year and decided to start the next phase of her life in Seattle, Wa. Keep in mind this is a huge step for an 18yr old who has: moved to a brand new environment, come from the east coast, starting college, paying for an apartment, bills, ect and holding down an almost full time job.

Wheres she going to school? I really really really doubt that the entire economy would collapse quickly enough to make it impossible to get her home btw.

-Alex

 

[tbburg]

What does all this mean for the business and employees-401k's, etc.?

It means they loose their ass,... if they cash out now. If they're not retiring after the next 5 years, probably not much.

How long does it take for things to start looking up?

Confidence lost is not restored by a press conference. People(and businesses) have to believe there has been some change in the situation. The feds will have to make some regulatory changes, then some time to take effect. My guess? About a year. Anyone operating on a cash basis may not even notice. Highly leveraged? Good luck!

 

[bigalpha]

Wheres she going to school? I really really really doubt that the entire economy would collapse quickly enough to make it impossible to get her home btw.

-Alex

I mean, if it got bad enough, she could jump on a bicycle. It would take a little while, but she'd make it.

 

[JNickel101]

Personally, I think if all these idiots holding stock on wall street would just calm down and quit selling everything as fast as they can, the market wouldn't drop...

You still own the same number of shares - the prices will come back - you haven't actually lost anything til you SELL for LESS than what you paid for it!!!

 

[Ba-Riedo]

Personally, I think if all these idiots holding stock on wall street would just calm down and quit selling everything as fast as they can, the market wouldn't drop...

You still own the same number of shares - the prices will come back - you haven't actually lost anything til you SELL for LESS than what you paid for it!!!

Exactly, but as we can see most people are not thinking logically anymore.

-Alex

 

[8Mud]

My investments are fairly modest, I manage mine a bit differently than most. I invest conservatively KO, GE, WFC, some bonds, precious metals etc. and am happy when my earnings are ahead of inflation. My earnings are usually below inflation. There is also a difference between advertised inflation and real inflation. Real inflation is how much more it costs each month (year) to keep "MY" household going.
I'm more worried about what all the cash poured into the market is going to do to inflation, the stocks going down are one thing, the earnings being worth less (due to high inflation) is worse for me.
Inflation can eat up your earnings just as surely as falling stock prices and dividends can. Even with a bull market I rarely earn more than inflation with my portfolio (ten year average). A modest bump in inflation can make long term earnings mostly worthless in the real world.

 

[red91]

About 15 after the world comes to an end....

but that's ok because I just got an invite to an AIG party!!!