Black People : The official " How to protect yourself during an Economic downturn" thread

Discussion in 'Black People Open Forum' started by I-khan, Jan 2, 2008.

  1. I-khan

    I-khan Well-Known Member MEMBER

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    In case you havent heard.

    Impending Destruction of the US Economy
    http://globalresearch.ca/index.php?context=va&aid=7508

    Questions About the Financial Crisis
    http://globalresearch.ca/index.php?context=va&aid=7510

    .....I could add more links, but you should search and research yourself. I am also starting this based on the conversations I have had with a number of people well versed in global economics. From them, and other personal research, the size of the depression could be around 20%(hypothesis,could be more or less in ACTUALITY and not what is said on FOX).

    Alot of people will say 'not bad' and such, but for someone like myself, and many others who already have alot of debt as well as other liabilities, that 20% reads more like 90%:injured: . So I propose this thread so that we may brainstorm on how to protect ourselves during this time period. I am asking all of the people who know something about 'stocks and bonds' and those who are very financially literate for their opinion as well. I'll start....


    ....get out of debt at all costs.


    anyone else?
     
  2. I-khan

    I-khan Well-Known Member MEMBER

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    Excuse me if this is posted in the 'wrong section', I posted this in the open forum for a reason, that being because this economy will affect everyone involved and the terms used should be in 'laymen form.'
     
  3. I-khan

    I-khan Well-Known Member MEMBER

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    Steps to Recession-Proof Your Life
    http://www.cnbc.com/id/21671496/

    Diversify your ability to earn money, to protect yourself from job loss. Take that Web design class, or set up that eBay biz you've been thinking about. Make a list, just for your own peace of mind, of ways you could earn extra money if you really had to.
    Buy some CDs. The banks need cash and are continuing to prop up rates on certificates of deposit even though the Federal Reserve has been cutting short-term rates. Don't put all of your long-term money in the bank, but a few CDs, salted away and earning 5 percent or better for the next year or so, will do nicely.

    Strategies for Surviving the Economic Downturn
    http://www.salesvantage.com/article/view.php?w=420&Strategies_for_Surviving_the_Economic_Downturn/


    How to survive a recession

    http://www.unbiased.co.uk/find-an-ifa/guides/other-guides-business/surviving-an-economic-downturn/
     
  4. I-khan

    I-khan Well-Known Member MEMBER

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  5. Omowale Jabali

    Omowale Jabali The Cosmic Journeyman PREMIUM MEMBER

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    Good topic...

    And one in which I am not of much benefit at this time because of a high debt to virtually no income ratio and an IRS tax audit have not resolved.

    I have sold off and liquidated alsmot everything except my personal property and have started donating much of that to charity, with more to go.

    I am now renting because high tax base in an undervalued housing market meant I was not able to use my home investment for invesment purposes. Not in the state of Texas. So I sold for a samll profit and to release myself from my tax liability.

    Sometimes we look at our debt from revolving credit without taking into consideration our property tax liability and what we are paying for homeowner's insurance, both of which are assessed higher than actual market value. When this is the situation you may be better off renting.

    A few years ago I followed some investment advice and started some Roth IRA plans converting my stock. This may not be the right idea if you may have financial crisis and need that money short term. Not only will you pay capital gains if you have a positive dividend but then pay the irs another 9% in penalty.

    Increasingly I am going cash-and-carry and started cutting up my credit cards. The creditors can catch-me-if-they-can.

    When they jack up rates near or over 30% ask them to close those accounts and some will actually negotiate to lower your rates. Even when regular on payments they will increase your rates by you late history or high balance ratio on other accounts.

    One company I later found had various "subsidiaries" and I closed two of those accounts. They refused to allow me to lose the third beause I was overlimit and when I paid the debt down they then told I had to pay off totally before they would close. This shows they are in a crunch.

    Its gonna get worse and I dont expect it to get better anytime soon.

    When lising my home I learned that it would be difficult to re-invest in another, more affordable home, even a rehab without a credit score over 680.And I had potential buyers who had problems with financing and could not cover even 3% down so I had to roll back some closing costs just to close.

    Even then, my buyers had to go through 2 companies to subsidize their loan, which most likely menas part was conventional, fixed, the other variable and/or subprime.

    The subprime market is collapsing and the governemnt is undermining the banks by selling hud/foreclosures BELOW market value. When home buyin I suggest researching the mls sites and also those which list govenment homes for sale and pre-foreclosures and check who actually owns the pre-foreclosures. the banks or the govt. While the govt. homes may be far under-valued thy have tighter credit restrictions and pre-payment penalties in effect which means restrictions on re-financing and on acquiring home equity and improvement loans.
     
  6. I-khan

    I-khan Well-Known Member MEMBER

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  7. I-khan

    I-khan Well-Known Member MEMBER

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  8. Omowale Jabali

    Omowale Jabali The Cosmic Journeyman PREMIUM MEMBER

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    This is an excellent idea. It's gonna take me some time to recover from my self-inflicted financial "meltdown" but months ago I was looking into the Seychelles and Cape Verde for potential real estate investment. Some area where I could buy some mutlti-familiy units, live in one and rent the others, or lease as time-shares. At the same time, open my art gallery/bookstore/performance space and also utilize the space for health and wellness classes/workshops.

    I had the money to make this move but decided to "wait and see" how some situations went with my family and job market in texas but things ain't working out as planned. I maight give it 5 more years, then I'm out. But who knows, I may have to modify my 7-year plan and "bail out".


    Check this out.

    http://www.ny.frb.org/newsevents/news/markets/2007/fx071108.html

    I suggest monitoring the foreign exchange markets, measuring the depreciation rate of the us dollar, and get ready to invest in at least one market which is appreciating at a rate higher than the us dollar depreciation rate, if that is possible.

    I have been paying closer to the HANG SENG INDEX because I think China and Hong Kong are gonna seriously challenge the Dow industrials, and its kinda of how I used to do in horse racing.

    Sometimes you have a favorite but money starts going to a second or third favorite, who usually ends of winning.

    These secondary markets are areas that international capital is moving. NOW.
     
  9. Omowale Jabali

    Omowale Jabali The Cosmic Journeyman PREMIUM MEMBER

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    Key Currency Rates

    http://money.aol.com/marketnews/currencies/article

    The Japanese Yen is moving +
     
  10. Omowale Jabali

    Omowale Jabali The Cosmic Journeyman PREMIUM MEMBER

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    PTR

    Last summer I recommended this stock. It took a hit after the us banned imports from china related to the food contamination issue. But this has not stopped other foreign investors. If you look at the profile and their investors you can see why. Look at the DIVIDEND RATE.
     
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