Sarcastic Econ Cat Sez: Bailout Bill Working Purr-fectly
O noes! Seems like some CNN editors need to look up the definition of “hubris,” or perhaps “market volatility”. Because that is definitely what we have here: a market with no compass.
Irresponsibly low interest rates–which drove investment firms into the subprime markets in the first place–continue to force people to put their money somewhere other than bank accounts and Treasury bonds.
But scared people with money are almost as bad as scared people with guns; instead of stimulating the economy, panicked investors are tearing it apart. Today’s trade volume: 8,716,329,600, four times average.
Predictably, the response to this has been nationalization, worldwide, and on a broad scale. And highly regulated, nationalized economies are notoriously inefficient. Not the thing you want to see if you’re hoping to regain the 30-some-odd percent losses your portfolio incurred over the past few months. Looks like that bailout bill we “needed” might turn into the Smoot-Hawley Tarriff Act of our generation.
Anyway, if you traded you gold or oil for a house, like I suggested a few months back, you’d have cashed out at the best possible time, and you’d have an investment that paid you dividends every day in the form of shelter, not needing to drive, and potential income from renters or roommates.
I still think a property downtown is a good option. Brokers like to say “buy when there’s blood on the streets,” but you still want to make sure the blood isn’t yours.
295 Commonwealth Ave #6B
Back Bay, MA 02115
2 beds, 2 baths
860 sq. ft.
$659,000
280 Commonwealth Ave #206
Back bay, MA 02116
1 beds, 1 baths
612 sq. ft.
$480,000
76 Marlborough St #4
Back Bay, MA 02116
2 beds, 1.5 baths
1,312 sq. ft.
$829,000
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