I’m not sure most of us have enjoyed the past few weeks, but what interesting times we live in. It’s not enough that this is an election year, with little more than three weeks to go until Americans head to the polls and vote. Who would have thought that the deepest financial crisis in generations would come just before the 2008 election?  Understandably some folks are scared about the future. Sometimes we need to step back and remember what our lives are really about. But we’re not even close to anything our grandparents may have seen and We’re Not Headed for a Depression.
“…the magnitude of this financial disturbance should be placed in perspective. Although it is the most severe financial crisis since the Great Depression of the 1930s, it is a far smaller crisis, especially in terms of the effects on output and employment. The United States had about 25% unemployment during most of the decade from 1931 until 1941, and sharp falls in GDP. Other countries experienced economic difficulties of a similar magnitude. So far, American GDP has not yet fallen, and unemployment has reached only a little over 6%. Both figures are likely to get quite a bit worse, but they will nowhere approach those of the 1930s.”
Did you watch the 2nd Presidential debate last night? I thought it was interesting, and that they both spoke well. McCain actually did pretty well for a change and I appreciated his focus on national security.  And what about his idea for the government to purchase defaulting mortgages? It’s not a bad idea if your premise is that housing must recover first before the economy can gain traction again. The government would step in and stop the bleeding for the ARM loans out there, helping stem the tide of foreclosures, etc. That would help consumers refinance into fixed rate loans they could handle, probably at very low rates historically. With amazing coordination, the Fed (and other global banks) reduced rates today, and that will eventually have an impact.
I’m still looking for bargains out there, and putting a little extra cash to work.  Will the market lows continue through the holidays? I seriously doubt it. But if it does, I’ve got some IRA money to invest in January that will have a great entry point.
On a lighter note (which we need more of), NBC has been taking heat for removing a hilarious Saturday Night Live video from it’s site, and then putting it back up after editing it.  Take a look at this really funny seven minute sketch below. I didn’t see the first version, but watching Bush, Pelosi and Barney Frank is so funny! And the “victims” of the subprime mess? Right on the money. The bit with Soros at the end is priceless too. It’s great to see SNL provide a little humor balance between the Democrats and Republicans.  Maybe the truth is a little too close…
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