Good or bad, we have a new survivalist type

glenn kangiser · June 03, 2008, 12:23:42 AM

PEG runs the building end of this thing-- I'm just the local smart alec.

Considerations, I have seen what you have done and I would have to say PEG has a good student. He enjoys helping people who make a good effort to learn and he is so generous with his help -- not many people would do what he does for the satisfaction of helping others beat their little piece of the system.

We all owe PEG a lot -- me included. So -- Thanks, PEG - until you are better paid. We'd all spend a lot of time wallowing around in confusion if it was not for you.

considerations · June 03, 2008, 10:32:54 AM

Back to the topic, I've noticed that urban Seattle residents are starting to show interest in "victory gardens". They call them other things now, but it's happening. I think it is a good thing, as long as they have sense enough to avoid places where vehicle exhaust and other pollution could influence the quality of the produce.

I'll stick to my clearing in the woods. Its a little piece of eden.

June 03, 2008, 11:35:34 AM

We are definitely starting to see lifestyle changes with the combination of high food and fuel prices, lower home values and (what most people sense) a contraction in spending and future job losses. This "perfect storm" is looking to be even more serious than the contraction of the 1970's. Getting prepared now and scaling back on debt is wise preparation. This is not the time to be borrowing to support a lifestyle that exceeds current income.

When gas prices started their climb about 5 years ago I guessed that Americans wouldn't start changing their lifestyles until it cost $100 to fill the tank on the trusty SUV. We are there now, for sure. GM is laying off workers on its truck factories and talking of dumping the Hummer brand all together. Chrysler and the big gangster cars may not be far behind.

Frugal may become the new hip.

Pity the poor folks in Turkey. At $11.20 a gallon a full tank of gas for a simple sedan can cost $200!

glenn kangiser · June 03, 2008, 08:17:31 PM

I am ready to start burning wood in my truck.

Back to the gasification kick.

peternap · June 03, 2008, 08:27:15 PM

Quote from: glenn kangiser on June 03, 2008, 08:17:31 PM
I am ready to start burning wood in my truck.

Back to the gasification kick.

Time to get a Whizzer

I may start selling the things. Every time I go somewhere I get people crowding around asking how the milage is, how fast will it go, how much does it cost. I carry a stack of the dealers cards and hand them out.

June 03, 2008, 08:34:03 PM

What do you think, Peter- could you get the Whizzed to run on wood gasification...or how about a portable methane generator on board like in India -- you could run your Whizzer on Pig Sh-t and not have to pay anything for fuel.

peternap · June 03, 2008, 08:42:42 PM

Quote from: glenn kangiser on June 03, 2008, 08:34:03 PM
What do you think, Peter- could you get the Whizzed to run on wood gasification...or how about a portable methane generator on board like in India -- you could run your Whizzer on Pig Sh-t and not have to pay anything for fuel.

I thought about a methane generator last year. Do a little tinkering with the intake on the engine, run a hose to the tank, eat a can of black beans, sit on the hose and you could fart your way across the country.

glenn kangiser · June 03, 2008, 08:47:16 PM

Hmm hmm Might just work.

Sassy · June 03, 2008, 11:57:47 PM

Hey, Peter, I thought that was Glenn talking at 1st...

I was talking to one of the nurses at work - she invested $10,000 in Yahoo shares when Yahoo was negotiating with Microsoft @ $16/share - right now they are worth $26/share - she says that it will probably go up to $200-250 when Microsoft & they eventually merge; she also had a friend that told her about some shares on an invention or something coming out from a University - don't remember exactly - she bought $10,000 worth a few months ago - they're worth $15-16 I think she told me - she's really done well...

The other day I was checking to see if I could get my Thrift Plan (401K) out early - even if I have to pay a penalty & taxes - because in 2 yrs when I'm eligible to take it out without a penalty, I'm afraid there may not be anything - but the gov't has us boxed into a corner - you can only get one loan at a time of the money & not very much anymore, you cannot take the money out unless you have a medical hardship, divorce or some other disaster - so your money is trapped...

June 04, 2008, 01:31:10 AM

Inside information, Peter-- I know some of the nurses at work make enough methane to power the Whizzer...I get inside informatio...Luckily I'm not speaking of Sassy. She probably couldn't even power it to Roanoke.

peternap · June 04, 2008, 06:12:04 AM

It may be a curse or a blessing but......I was given the POWER!

glenn kangiser · June 04, 2008, 11:13:44 AM

muldoon · June 04, 2008, 01:46:55 PM

Quote from: Sassy on June 03, 2008, 11:57:47 PM
Hey, Peter, I thought that was Glenn talking at 1st...

I was talking to one of the nurses at work - she invested $10,000 in Yahoo shares when Yahoo was negotiating with Microsoft @ $16/share - right now they are worth $26/share - she says that it will probably go up to $200-250 when Microsoft & they eventually merge; she also had a friend that told her about some shares on an invention or something coming out from a University - don't remember exactly - she bought $10,000 worth a few months ago - they're worth $15-16 I think she told me - she's really done well...

The other day I was checking to see if I could get my Thrift Plan (401K) out early - even if I have to pay a penalty & taxes - because in 2 yrs when I'm eligible to take it out without a penalty, I'm afraid there may not be anything - but the gov't has us boxed into a corner - you can only get one loan at a time of the money & not very much anymore, you cannot take the money out unless you have a medical hardship, divorce or some other disaster - so your money is trapped...

I am not a financial advisor. I am not a trader. I am not qualified to tell anyone what to do with their money. However, I can tell you some facts and hopefully you will research them, find them to be true, consider a risk vs. benefit calculation and make a decision. I do not think it is unreasonable to take some steps to protect yourself at this time, I do not think making a return on capitol is as important as preserving capitol at this time. If you feel that your funds are at risk, their are some things you can do to protect yourself and your money.

If your money is in banks, this is checking accounts, savings accounts and CD's. FDIC insurance covers you up to 100,000 dollars per account. If you have more than this you are at risk of completely losing it. Yes the risk is real. When the FDIC and SEC closes a bank they close the doors on a Friday night, work all weekend, then announce on Monday. You may not get any warning, if you are getting a large check (sale of house, etc), try to close on a Monday and make other arrangements to move funds around during the week. The FDIC coverage is not guarenteed to be immediate, it may take 3-12 months to get your funds. Have some wiggle room with your personal finances.

If your in 401ks and pensions and have some degree of where the money goes - for investment accounts, their is something called SIPC which is sorta like FDIC but not government backed. First thing, Money market accounts are not proectected in ANY way. Their is no safety net, if it tanks you lose it all. This was argued because at the time they were invented it was an exotic investment vehicle and people who invested in them understood the risks. Second, many investment banks put your funds into a "sweep" account. This is especially true when you think you have your funds in "cash" or on the sidelines, you'll get some interest on the account very frequently. Sweeps are not protected by SIPC. Next, equities are protected, but only for the amount loss on the day of the settlement, not necesarily when you lost access. If etrade tanks and locks you from your funds, and you had 100 shares of apple at 100, and SIPC takes 3 months to get to your account and apple falls to 10, they give you 100 shares at 10 dollars. Be aware of the risk. Short term treasuries look to be the safest right now, even though the return is weak weak. Vanguard has a TIPS (inflation guarded treasury) as do others. FDLXX is the safest for fidelity on capitol returns. You want to stay away from anything that is backed by the word agency or gse when you look for safety. This is considered safe as long as we have US government, and if we dont then really, what else could you do anyway?

Theres some serious strain out there, and it looks like Lehman is seeing a run right now. While they may have been ok 3 days ago this is the type of thing that can seriously topple them. If that were to occur other large investment banks would have losses due to counterparty risk and may be in jeopardy. It is not unreasonable to take some steps to protect yourself. If I was at risk, I would not sleep until this was completed today.
...5500 character limit

.. maybe I talk too much?

muldoon · June 04, 2008, 01:47:24 PM

For bonds, who knows? I do know that the ratings companies have more or less committed suicide. Moodys annoucing that new methods reveals some of their aaa ratings should be market 15 nothes down to junk. http://www.bloomberg.com/apps/news?pid=20601087&sid=a0tWb0sTTgu8&refer=home a few days back they announced a "programming error" that rated things too high, and they still are not corrected. http://www.bloomberg.com/apps/news?pid=20601087&sid=a0tWb0sTTgu8&refer=home This is CYA, its tanking badly and their doing whatever they can to save face.

News from FT tells the story regarding states budgets and delcining tax revenues, its about to get real ugly for CA and FL, we'll have to wait and see how much this spreads.
http://www.nytimes.com/2008/06/01/weekinreview/01uchitelle.html?_r=1&oref=slogin

The ratings mean nothing, the ability to pay is in deline for some percentage of muni debt. Who knows which ones are in good shape or not?

The point of this is not to alarm people, although that may not be a bad thing if your not already. It's to point out that at this point, everyone still has options if they want to take steps to protect themselves. One does not need to take it all out and eat a huge tax penalty, but to look for profit in this with "investment money" is risky. Better the save the investment money back somewhere safe and if you want to gamble some on speculating, well thats your choice.

June 04, 2008, 02:06:39 PM

My money in the Thrift Savings Plan is 90% in gov't bonds/treasury bills - the other 10% is in international investments. There is no way I can get the money out unless I quit - that would be 2 yrs short of my 20 yrs for retirement & I don't want to jeopardize that... hopefully there will still be a gov't that I can get retirement from... I've paid in plenty over the years...

Didn't know that about the e-trades - that they could freeze things & by the time you get your money, the value could have