JoeTaxpayer

The Q3 GDP number came out last week and the GDP was negative by .3%.

.3% wouldn’t seem so bad in normal times, but these times are far from normal. The economy is on very shaky ground and these are uncertain times. Now, Joe, you might tell me, no time is certain, and with that I agree. But the current market volatility is at a record high, and the market itself appears to be coming undone, seemingly due to the derivatives that were to supposed to provide further liquidity and reduce risk.
Now, advisers are suggesting that everyone stop spending, and start to save. But this is actually dangerous advice, how will this quarter’s GDP be impacted should we all just decide to tighten our belts and stop spending. Now is the time to go out and buy. We need to spend our way our of the impending recession we all are dreading.
Joe

written by JOE \\ tags: derivatives, economy, gdp, liquidity, recession, risk, volatility

Last week, the Q2 ‘08 number was revised to 3.3% up from 1.9%. This may be attributed to the stimulus package, or an increase in exports due to the lower dollar, but it’s good news and far from the depression some were forecasting.

Perhaps we’ll avoid a recession altogether, and Q4 ‘07 will be the only quarter of contraction. Time will tell.

Joe

written by JOE \\ tags: Finance, gdp, Investing, investment, recession

While the second quarter came in at 1.9%, likely due to those $600 checks, Q4 of last year was revised down to -.2%.

So, for now, there is certainly a slowdown, but we may very well avoid a recession by the classic definition, two quarters of contraction.

Joe

written by JOE \\ tags: gdp, recession

In a simulcast of publishing both here, and my main web page, where I publish a monthly article, I am happy to offer my List of Lists;

Ever since 1977’s “Book of Lists“, our fascination with lists and sets of rules has grown. David Letterman’s Top Ten List has been going on for decades with no end in sight. These are Rules of Money that I’ve saved over the past few years, enough to post my favorite “List of Lists”. If I missed one of your favorites, please leave a comment and I will add it.

• 25 Rules to Grow Rich By
• 9 money rules to live by
• 16 favorite money rules of thumb
• 5 money rules to live by
• Jim Cramer’s 25 Rules of Investing
• Charlie Munger’s 10 Rules for Investment Success
• The 10 Most-Hated Money Saving Tips
• Eight Secrets of Financial Happiness
• 10 Reasons You are Not Rich
• 20 timeless money rules
• Dilbert’s “Unified Theory of Everything Financial”
• 50 Tips to Help Establish Your Emergency Fund
• Ten Things You Need to Know About Money
• Seven Reasons to Welcome a Recession
• 15 ways to improve your credit score
• 50 Ways To Raise Your FICO Credit Score

Take your time, enjoy the list, and send me your thoughts.
Joe

written by JOE \\ tags: 20 timeless money rules, book of lists, charlie munger, Credit, david letterman, emergency fund, fico, fico credit score, Investing, investment, investment success, jim cramer, money, recession, rich, saving, TIPS, top ten list

Back on May 2, I posted “No Recession Yet” where I mention that GDP growth in the first quarter was .6%. As often happens, that number was revised, as shown, up to .9%. One more revision on June 26, that’s it.

Not stellar growth, but enough to keep us above Bagel territory.

Joe

written by JOE \\ tags: Finance, gdp, Investing, investment, recession