I did not waste my time writing The Right View this summer because nothing I, or any other right wing ideologue was going to write, or say, was going to change a thing.
All summer the hand writing was on the wall; Obama wins the election. Even the addition of Palin to the McCain ticket would not change the direction the country was heading.
Well, now with Obama’s election the country is headed somewhere, I just don’t know where, and I doubt if anyone else does. We will see change however, and not necessarily the kind most were expecting. These coming changes are economic. They will push us away from capitalism as we have come to know it. I’m talking about federalizing banks and industry, European style. These upcoming changes can not be attributed to Obama although he will make a contribution to exacerbating them. I’m talking about a very big bubble burst in the decades long running growth of the American economy. The bursting of the Dot com. bubble, and the Housing bubbles will be nothing compared to the bursting of the finance bubble together with the wild Washington spending spree. Add Washington’s Congressional influence on the economy and we will be assured of economic problems for the next year or more. The government is going to need money and they will be after you to get it.
So, what to do.
Downsize your life, your company’s and your future.
Pay off all revolving and short term debt while you still have a job.
Refinance and consolidate debt to lower outflow.
Save cash while you still have income, remember what a savings passbook looked like?
Sell off expensive toys you can live without, boats, ski mobiles, third vehicles, motor homes, trailers, etc..
Put off that expensive vacation.
Look for bargains, like foreclosures in multifamily housing for rental income.
Switch to securities that have low P/E’s and have paid dividends for many years, consecutively, and only those with a lot of cash on hand.
Own Treasuries.
Remember, prices go down in a recession so sell high buy low later. When the economy turns around you will be in a great position to run with the bulls.
