The Final Punch - Inflation

July 8th, 2008 • Related • Filed Under
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The last year has not been easy. What was a flourishing economy turned out to be nothing more than another fabricated economic bubble, inflated beyond recognition.

It was a nice dream while it lasted. The bottom feeders, subprime lenders and the like, were thriving, but so weren’t many of us.

I know for me, my ballooning 401k and home value had me feeling on top of the world. I would retire at 62, a fat and happy, almost middle class millionaire, living off of the dividends generated by my 20% yields, accrued over the last fifteen years - compound interest at it’s best.

The last two weeks of July, 2007, I flew off to Italy on my honeymoon, paying little mind to the even then weakening dollar, and predictions of a continued real estate crash.

I did not read a newspaper, or turn on the TV or radio for the entire vacation. I was too busy trying to translate the dinner menu!

Arriving back home, exhausted, and adjusting to the 6 hour time change, I slept, recuperating from the wine, pasta and jet lag, fretting about all the laundry I had to catch up on, and about returning to work the following Monday.

Then, well rested, I turned on my computer to check over the Red Sox scores and finances.

Pop.

Ut- oh.

The Red Sox were doing great, but my 401k had turned south. It was $30,000 dollars lighter than it had been two weeks ago.

It recuperated from this initial dip, only to plummet again, and now it continues its steady downward spiral.

I keep waiting for that economic up-turn they keep talking about. It was supposed to come this month, but instead, gas prices are soaring, and inflation has come out swinging.

Now they predict the up-turn for the end of the year.

And now, if I’m lucky, I’ll retire at 65 and work a part time job. And I’m one of the lucky ones. I still have some savings, and have not lost my home, or my job - knock on wood.

It was a nice bubble while it lasted.

How has the economic down-turn affected you and your family?

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There Are 6 Responses So Far. »

  1. Comment by no imageSharon (Who am I?) on 8 July 2008:

    I felt the same way during the bubble. Our 401K was rising leaps and bounds and our house was more than doubling in value….and then, well you know. Oh well, now we will have to save a bit harder and longer to retire…here’s hoping things start going up….

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  2. Comment by no imageLisa (Who am I?) on 9 July 2008:

    @ Sharon- I am amazed at how quickly the whole economy took a nose dive. Thanks for your comments- Lisa

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  3. Comment by no imageProphet (Who am I?) on 11 July 2008:

    In my opion the economy has some problems, BUT they are no where near as bad as the media reports on them. The media loves an attention grabber so they will jump to put out these negative headlines. However MOST people I know there 401k’s.. investment accounts etc have all soured due to the stock market, but when it comes to their jobs such as pay/bonuses job security etc.. they are as well off as they have ever been. Home prices are falling if you live in a very overly inflated market.. but on the same token a lot of people I know all over have barely seen there home prices fall if at all. Some have even risen. If you watch the news though you would think everyone is on the brink of struggling like in the great depression.

    Is it bad out there? Yes… but it’s not that bad and I doubt it will get that bad. Media CAN cause a recession. If you pump people full of enough bad news they start to think its that bad and that THINKING causes the recession.

    Prophets last blog post..How to find a trading strategy? Pt.2

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  4. Comment by no imageRoy Hewitt (Who am I?) on 14 July 2008:

    Hi Lisa,

    I enjoyed reading your articles. I invite you to come on board with Young Living. I think its just what you are looking for.

    Sincerely,

    Roy Hewitt

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  5. Comment by no imagemikey777 (Who am I?) on 19 July 2008:

    I don’t know how anybody could predict an up-turn for our economy with the current job market situation. Unemployment is predicted to hit a high of 6.9% by early 2009. No jobs=flailing economy.

    What has hit my family the hardest is the sharp rise in the cost of food (milk especially) and health insurance. Gas prices are terrible, but we’re lucky enough to live in a small town, where everything is within about 4-5 miles of our home.

    We used to live in Los Angeles. Gasoline is now over $5 per gallon there. Glad we got out when we did!

    mikey777s last blog post..The Best Advice For Dealing With Favoritism At Work

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  6. Comment by Trackbacks on 12 October 2008:

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