How To Make It Through The Financial Crises

"In the long run, Americans have good reason to be confident in our economic strength. America has the most talented, productive, and entrepreneurial workers in the world. This country is the best country in the world to invest and do business in. Consumers around the world continue to seek out American products as evidenced by record-high exports. We have a flexible and resilient system that absorbs challenges and makes corrections and bounces back." President George W. Bush, September 19, 2008--White House Press release.

In the long run according to President Bush, we should be okay. So, what is happening now and where is the best place to invest right now to make it through the financial crises that we are in?
Do you remember back in January when there was a huge problem with sub prime mortgages and things seemed to be falling apart then? Well guess what? They have! To some extent, that is.

A sub prime mortgage loan is a loan made to a high risk individual. When this was going on investors were buying homes as speculative investments and getting these sub prime loans to finance the houses thinking that they would sell them later on. When housing prices fell in many locations around the country these high risk loan holders just walked away and these homes went into foreclosure. The majority of average home owners are paying their mortgages and paying back their debt however. The sub prime lending problem has shot through the veins of the financial system to the point where we are now in crises mode and it is difficult for individuals as well as business to obtain credit. What the government plans to do is to buy up all of the toxic mortgages and try to stabilize the financial markets.

Over the next few months and into the next year, the economy will continue to be weak and turbulent. There is talk about stagflation where you will see both high interest rates and high inflation--that's not a good thing.

The best place to invest your money is in non-cyclical. Think about things that people have to have in their lives like Grocery, Pharmaceutical, and Utility stocks. If you are not comfortable about investing in stocks or bonds right now, consider a short term Certificate of Deposit or a good Money Market account. Try to pay down your debt so that you have a credit cushion and try to build a cash emergency fund of three months worth of expenses in case you get laid off.

Are You Throwing a Clone of Bessie On The Barbie?

While doing some research this morning, I came across a Reuters article about cloned meat and dairy products coming to a store shelf near you! I am a huge beef eater. My favorite foods are Barbied steak (not to be confused with Barbie dolls) and prime rib. I love a T-bone steak that's about an inch thick marinated in red wine and garlic. Would I eat it if it were a cloned animal? eeeeew--don't think so. I know intellectually that a cloned animal is probably no different than a traditionally raised animal and the Food and Drug Administration is saying that cloned animals are just as safe and they have even approved the clones for sale. How do they know that it's safe? They reviewed available scientific reports. Cloned cattle, pork, and goats all got the executioners green light to be sold in the meat and dairy section. For me it's the Frankenstein image---that and the memory of mad cow disease (not that it's related-- I just have a wee bit of a trust issue there.)

It will be a while before they sell Bessie1 and Bessie2 because of the costly nature of cloning and weeding out the extra legs that are produced (just kidding).

60% of people surveyed have said that would not eat cloned meat because of religious, ethical or squeamish reasons and many food manufacturers such as Kraft and Tyson have said that won't use cloned meat or dairy in their products not because of health concerns but, because of the public perception and non-acceptance of the practice.

I wonder if they will try to clone and pass of a race horse? I think that the Jockey Club would have an issue with that!

The cattle in the picture are Idaho free range cattle and not cloned.