Wednesday, December 3, 2008

Interim

Lori and I just got back from 10 days at home for the holiday. We had a really great time and we're already looking forward to going back for Christmas. I've kept my distance from the news because I want to enjoy the holidays, however it's hard to completely ignore it. The Bombay (I prefer the old name, vs. Mumbai) shootings, the economy, Obama's cabinet picks, the Big Auto 3 bailout, etc.

So, we're officially in a recession now, but instead of repeating the mantra of doom and gloom to yourself, look for the positives out of this:
  • Gas is extremely low and will probably go lower. An increase is unlikely in the near future.
  • Inflation is actually pretty low (3.66%) and may actually drop.
  • Consumer prices (related to inflation) dropped as well, hence why Black Friday was so nice this year (I hope you took advantage!)
  • Interest rates are really low on existing debt (i.e. student loans, mortgages). However, pay off those high interest debts immediately.
  • The dollar is generally surging against other currencies because the world still believes that we are the bedrock of the world's economy, thus vacations abroad are cheaper right now.
  • Great time to buy a car (GM, Ford, and Toyota all dropped more than 25% in sales), thus prices and discounts are much higher right now.
  • Charitably giving is actually either maintaining or increasing despite the economic times.
  • Wonderful time to pay off loans against your 401(k) or pay into your retirement vehicle because your money will buy you more shares. Do it!
  • And finally, recessions are cyclical, so we're just in that place right now, but this too shall pass.

4 comments:

jennapotts said...

Thanks for the good news! Can't wait to see you two again and meet Hoosier!

Kyle said...

Likewise! Hopefully this time you can talk without killing your throat :-) Hoosier and us are very excited to come see you too!

Mom said...

Thanks for pointing out the positive! I can always count on you to be optimistic.

Kyle said...

Of course! There's always more good out there than we hear about :-)