Is economic collapse on the horizon?

Tony Radford · #1 (**permalink**) 09-21-2008, 11:12 AM

I take the blame for not becoming familiar with our complex global finance system, but what are the opinions of those far better versed in these matters regarding what the future holds? Being a deciple of Dave Ramsey, I've been funneling my money towards the eridication of personal debt (and making some great strides). I realize my 401K may be worthless at retirement age (15 or so years out). I believe so little about what I hear from the pundits on TV and my friends fit into two distinct camps - bail out and hide what little cash you can, or - ride it out. I don't have a lot of cash to hide. Am I doomed? I really hate dumpster food.

392cobra · #2 (**permalink**) 09-21-2008, 02:29 PM

You might start buying Alpo on sale Tony.

Reread Dave's books and you won't get all excited about this stuff.
You're just a kid.

FWB · #3 (**permalink**) 09-21-2008, 07:24 PM

i have found 4 and 5 star hotels have the absolute best dumpster food, try to stay away from the chain resturants, that truely is trash.

trularin · #4 (**permalink**) 09-21-2008, 07:27 PM

In a total collapse of social order and villages and towns become self governed entities, one would wonder how long until the 'haves' become victims of the 'have-nots'.

Tony, if your house is paid off and you have no debt, it does not make sense to dump money into something that a week later says you have less than you put in. Possibly a more conservative approach to money management is in order.

Short term with a written return has got to be better than continual loss.

Personally, I have stopped investing in any retirement at this time. It is depressing to see that you put in 15k into something that is now worth 9.5k.

Just my $0.02 worth.

Ronbo · #5 (**permalink**) 09-21-2008, 07:28 PM

Shoot you live in Georga man! Buy land with lots of southern pines and collect your check every ten years or so from the paper company. They clear-cut and replant the trees and hand you a check. In between you have a place to go get free deer and hogs for the dinner table.

Park a used trailer out there and an old truck to beat around in on your hunting week-ends.

Just make sure none of it is "wet lands" (AKA swamp) this can be a PIA to get changed when the developers start building in your area.

Keep an eye on "bridges to nowhere" projects when they pop up and try to buy land there. Bridges to nowhere eventually get built and it may take 20yrs, but then how long does that 401K take to amount to anything?

J. T. Toad · #6 (**permalink**) 09-21-2008, 10:42 PM

Yes.

just kidding. well, maybe not.... but anyway no matter, relax, nothing you or I are going to change what is inevitably going to happen.

In a "economic collapse" scenario let me humbly recommend for your consideration, once you are calm enough to hear, one thing you don't want to do is "bail out and hide what little cash you can"

If/ when so much hits the fan that the fan quits spinning, "cash" won't be king... it'll be worthless.

Think about what is truly valuable, and take "stock" in it.

trularin · #7 (**permalink**) 09-22-2008, 01:20 PM

Ammo, fuel, food ( in storage form ), gold and salt will be commerce. Salt will be in demand as much as ammo.

You do not want to live near a bunch of people if you can help it. The 'have-nots' will seek out those that 'have' and take. The pain of being without will drive most people to commit crimes they normally would not commit.

AND, if you think about 'helping them out', you had better have more than enough for the rest of your life as word will spread and everyone will be at your doorstep.

Cruel as this sounds, it is true.

jhv48 · #8 (**permalink**) 09-22-2008, 02:34 PM

Quote:

Originally Posted by trularin

AND, if you think about 'helping them out', you had better have more than enough for the rest of your life as word will spread and everyone will be at your doorstep.

Cruel as this sounds, it is true.

Isn't that what the Democrats are proposing we do right now?

jhv48 · #9 (**permalink**) 09-22-2008, 03:37 PM

Seriously, if you have 10 or more years to retirement, and are well diversified in your portfolio, you should ride out this mess just fine. Diversification is the key here.

And bank CD's are paying 4% or more so they can be a good place to store some cash temporarily. If you have lots of consumer debt, pay that down first. The market does this every few years and then goes strong for a few more. Enough of these cycles and you should come out ahead.