Resilency

The market is holding up well with bad news flooding the forefront of everyone's consciousness.  

I'm watching Putin in Russia warning that foes attempting to destabilize Russia will be suppressed, knowing he has his own agenda, being a former member of the KGB.  If he is trying to put this country under a police state, I think the economic situation will rule the day and minimize his control in doing this.  

Pension funds of corporations in the S&P 500 are underfunded.  They are being forced to decrease contributions and in some cases plan on closing the funds.  This is a clear sign of the long range affects that this current situation is having.  I happen to have a defined pensioned plan with General Dynamics, who bought GTE Government Systems where I worked for 13 years.  I can collect a monthly pension or lump sump when I'm 65.  This company seems to be healthy and thriving in this climate.  If it is there when I reach this age, great.  Otherwise, I'm not including it in any life planning.

More than 12 million home owners are under water; an estimate of $5 trillion in housing values lost.  In 2009, there is an estimate of another 25% reduction in housing prices, and it it to continue into 2010.  Even though low rates are being offered and people are saying what a great deal houses are now, consider offering 25% less for any house you may be serious about buying.  The 'present value' of houses is not being reflected yet.

Credit is continuing to be tight because the banks receiving the $700B bailout are buying U.S. Bonds and Treasury Bills.  Where is the management and pressure to force them to lend  the money as originally defined to the individual?  This is a sure sign that those at the top of government have no control in how the money is used.  Lowering the discount rate to 0-.25% is suppose to encourage them to move forward in this manner.  Time will tell.

Overall, the 'fall' is continuing all across the world.  Japan and Germany are pumping extra funding into the system.  The Belgium government collapsed after it failed in an attempt to bailout its financial group Fortis Bank.  If you look at the results of all of the actions, the truth is revealed.

As I have said repeatedly, if you can reduce your own personal debt, and be less tied to what is happening to the world financial system, you will be free to act in an abundant way when the bottoms are reached.