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Comment by ff123 on December 14, 2008 at 9:21pm

Geogregina Lyborg is moving albeit slowly - it won't be better over night but it won't be all doom and gloom forever - soon the newspapers will discover something else to moan about (Ben Cousins will get a job in the mean time the roses will still bloom - our children will still make us feel old and grateful for the wisdom we have accumulated and hopefully the price of petrol will remain sensible for a while

Comment by Bandwidth on October 1, 2008 at 7:29am

Hello Georgina

Sorry if I upset you as that was not my intent

Comment by Georgina on September 29, 2008 at 9:44pm

Oh well Bandwith believe what you want to believe because you think I am pessismistic. There are alot of other people who might agree with me. So pessimism is being sensible and practical? I'd love to know your definition of optimism? Is is being risk taking and fool hardy?

Do want you want to do, invest where you want to invest. The world is your oyster.
Don't insure your house because it means that you're a pessimistic person, Nothing bad can EVER happen to you, no disaster can ever or will ever touch you. You are invincible, so why not try jumping off a roof? You gotta BELIEVE everything will be fine, after all America is invincible and it will all work out in the long run.
Don't stockpile food - just starve.

I'm finished with this topic. No more comments PLEASE.

Comment by Bandwidth on September 29, 2008 at 9:14pm

Hello Georgina

In my experience, pessamism is almost always justified by saying it is being sensible and practical. A deppression does not happen overnight.

One of the major causes of the last deppression is that America became protectionest and the money flow stopped, one of the reasons everyone is working to calm the financial crisis

Not all banks are in trouble, only the ones the press want's you to hear about.

Not all shares are going down BTW. The energy sector is still doing quite well and the retail sector is showing signs of life.

Where buying food in bulk and storing it for later use is a good thing I feel the way you are putting it is a bit woe is me.

Insurance is only necessary if you can not bear the cost of the event on your own. Insurance companies are only mitigating the risk.

We can all repeat what we want to hear in the news, for every negative opinion there will be an opposing positive one.

The comment about investing in the share market when it is good and getting out when it is bad is the reson most people lose money as they get in at the top and out at the bottom. The market volatility is flattening out and as people become used to the new norm the cycle will start again.

Aim high and then you have some chance of hitting the target

Comment by Georgina on September 29, 2008 at 8:50pm

Vonny I agree with you that no one can predict the future, we don't know what or how things will pan out. But I don't think I am overly pessismistic in saying to invest in commodities - maybe I come across that way? I am only writing about things that I heard in the news - which is never good. If there is a depression and I say IF then we should prepare for this why can't people understand that this is what I am talking about? Shares are going down - a domino effect to America's woes. If a depression or hyperinflation or both occurs shouldn't we invest in commodities and stockpile food? What is wrong with that? It is good to invest in the sharemarket when times are good - I agree big money can be made, but times are turbulent now, banks are in a financial mess and one by one they could collapse? How much longer can the U.S government keep bailing them out??
Stockpiling food is a precautionary method, depressions can happen from one day to the next. That is what happened in 1929-1930, everything was rosey up to the Great Depression then bang it happened the stock market fell in America and it was felt throughout the world. Besides even a disaster dosen't happen it could save you some money because the price of food is not going to go down is it? And cans of food are not going to go off quite readily. You insure your house not because you necessarily believe that it will be burgalled or burnt down or will collapse but you insure your house IN CASE it happens, don't you agree? And if you think a storm is coming towards the area you live in - you would make sure you have your house insured wouldn't you agree? Is this a pessimistic attitude or an optimistic attitude - you figure it out. I think it's a sensible and practical attitude.

Comment by Vonny on September 28, 2008 at 7:08pm

Georgina, I think no one can predict the future. Your post is a very depressive view of the future. There is usually an over pessimistic view somewhere and then an overly optimistic one. The market and media fluctuate between both depending on the day of the week! It is more likely a middle ground that will happen. The US is likely to have quite a bit of trouble, but I equally believe that it will bounce back. All we can do is get on with our lives, maybe put a bit of our money into the commodities if u think it is more likely that the US will be in huge trouble. It is not surprising that the Americans are posting heavily negative posts since they are right in the midst of it and it always seems worse in that case. Even if there is a depression, everything goes in cycles and will be back eventually. It is not the end of the world :)

Going as far as stockpiling food is going a bit too far at the moment. Let the future pan out a bit to see the likeliness of a depression before we need to go that far. You don't want to be likened to the crazed Russians who hid in caves believing it was the end of the world! They might be right in the end but there aren't enough concrete signs supporting them at the moment. Just keep the thought at the back of your mind and if the signs point ever closer to this, you can act on it before the majority of the public does.

P.S. I do have a (small) position in gold at the moment not because of the US possibly falling over but because during times of turmoil, that's what people buy so it goes up.

Comment by Georgina on September 26, 2008 at 6:26pm

So if we think optimistically and believe what the authorities tell us everything will be fine - I don't think so! I'm just saying we should take care of our own futures. I realise society has lived through wars and bad times before but I personally don't want to lose everything regardless if I can take some preventative action beforehand to safeguard against any future catastrophy.

Comment by MoneyMagnet on September 25, 2008 at 1:25pm

I'm with you Bandwidth! The sun will rise and the earth will turn regardless of the state of any economy. People will still eat, need places to sleep and get sick...invest in those things and you cant go wrong.

Comment by Bandwidth on September 25, 2008 at 7:40am

Where I think there is turmoil in the world economy there is a great danger of the Chicken Little "the sky is falling, the sky is falling". We as a society have lived and prospered through world wars, deppressions, market crashes and we are still here.

We will work through this and adjust our thinking until the next time.

Remember the panic for Y2K