1 post tagged “stock market”

Well, it's been too long since I posted.

As you may recall, my friend Burton Orwig passed away.  I've been kind of blue about that and haven't felt like doing much.  I seem to be getting over it and now I'm hoping to be back on track.

When I last posted, I bragged how I had I traded my 2004 Mazda RX-8 (worth about $16K but with $14.5K debt) for a 2005 Chrysler Convertible (new debt $11K).  I'm hoping this will jump start my debt reduction by reducing the amount of debt on my balance sheet (3.5K) and freeing up some operating cash to accelerate my debt repayment.

It's only been a couple weeks, so I can't report much progress (yet).  However, I am thoroughly enjoying the PT Convertible!  It's not that exciting as a driver's car... in fact it sort of wallows on it's overly soft, floaty suspension... but it IS a convertible and I've found that I love, love, love to drive with the top down (and tunes playing!).  I'm feeling very positive about this purchase.

I continue to be obsessed with the financial news, which has been all horrifying!  The Sub-Prime Debt fiasco is causing major market volatility and it is very unclear how this will effect the US Economy.  In the past, I've been thinking we are headed to a debt crisis in America.  If anything, I think I may have underestimated how bad the situation could be.

The past 7 years have seen an unprecedented (debt-fueled) real estate binge.  I've been railing for several years that the fundamentals are out of whack, especially here in Southern California.  Prudent financial guidance has been been drowned out by the Real Estate and Mortgage marketing machine touting a house as a "sure bet" and "safe investment." 

Reality Check:
Amount $1 invested in stocks in 1963 would have compounded to today: $12.36
Amount $1 invested in real estate in 1963 would have compounded to today: $1.79

(That data is sourced from www.stopthesqueeze.com <= a wonderful anti-debt site!)

Now that the housing market is tanking, I'm hopeful.  May cooler heads prevail!

Enough of the "dismal science" of Economics... How about some Music!? 

Today's Media Tidbit
I love DJ Paul V's podcast, The Smash Mix.  It is sponsored by some radio station, but I bypass the station site and get the mix directly from DJ Paul's site (http://www.thesmashmix.com).  Here's his latest SmashMix:

DJPaulV_SmashMix118_8_3_07

DJ Paul V