Friday, January 2, 2009

The Silver Lining

Here is a something I read somewhere - presented in first person just so you can get inside this person's head. I took some artistic liberties with it, too.

What recession? I've been in recession for a few years already, just barely making my bill payments, juggling who gets paid when and looking longingly at travel ads knowing I'm not going anywhere anytime soon.

My mortgage was killing me and I have no idea where the money to pay my taxes is coming from. I'm spending what I should be putting into my estimated tax account.

Yeah, people are now starting to hurt, too. But for me, I not only have company but justification for all my financial woes. Nobody has to know they started long before subprime problems were a twinkle in Uncle Ben's eye.

But lo and behold (I always wanted to say that) my mortgage payment has been cut by 30% thanks to my adjustable rate. I did not have a low teaser rate but a regular old adjustable and now it has adjusted down thanks to the credit crisis. Can you believe it? My payments are much lower now.

Gasoline is half what I got used to paying. Heating oil, too. And for the things I do need to buy prices are somewhat softer, too. No, I'm not buying a car or a TV but sales on clothing (sensible, not movie star chic) are pretty good.

Just for kicks, I even took advantage of a football hero's fall from grace (and likely to jail) and bought his jersey online at half price with free shipping. Even for struggling people like me there is opportunity thanks to the times. I'd rather be buying that vacation condo in Florida but a jersey is a bit more in line with the budget.

I am actually in better shape now than I was six months ago. Perhaps the economists were right - lower interest rates helped. Perhaps I was just ahead of the recession curve - falling sooner than the rest and now recovering sooner.

You know, the future just got a bit brighter.

4 comments:

paulocuana said...

Michael,

I've been hearing rumors that the Fed/Treasury has been intervening in the equity markets.
Do you think there is anything to this?

paulocuana said...

If this were the 1937-1938 bear then the rally from the November low would end this Thursday; the final bottom coming around March 27 at about 650 on the S&P 500.
The good news is that the year ended up over 50% from the March low.

Best Wishes for the New Year!

Quick Takes Pro said...

Paulocuana,

You KNOW they are meddling everywhere they can. Plunge Protection, coercion of primary dealers, etc...

Quick Takes Pro said...

I don't think the rally ends this week but a final bottom is March is well within the parameters of what I've been writing.