Economics 606

rule number 1: Don't buy what one cannot afford. (PERIOD)

it's a basic rule, and I, myself, have been guilty of it.

I mean, I had been a broke college student that would go an indulge on some steak house even though I couldn't afford to do it. I am not talking about those kind of indulgence.

I am talking about those things that would put one into debt. SERIOUS debt.

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tech shares and sales have jumped within this bad economy. Does that mean that while the economy is bad, we are actually out there buying gidgets and gadgets? I think it's true.

Intel, Dell, Apple ™, Research in Motion (blueberries ™, wait, raspberries, ummmm, dingleberries?? anyways, the one the President of the U.S uses) are all expecting good reports (and a couple of them DID have good reports this past week)

While the sales of the companies such as Bestbuy, Circuit city, and others have slumped, the tech part that they are selling are doing pretty good.

The video games, the puters, the mini-puters, cell phones, I-Pod, and Ur-foot ®, have all gained shares in sales and are reporting profits

It seems the trend is true to human psychology. When the economy and the money goes bad, we buy thing to make ourselves better.

Things that we often don't need, though...

now, it's different if it was something small, like a cup of $8.66 Crappucino ® @ Crapdoes, or paying $4.50 for a scoop of Chocolate/Mango/Garlic ice cream mixed with Gummy Bears ® and peas and carrots.

I am talking about $200 for an Ur-Foot™ Phone or $175 for a Dingleberry™ and then paying $75 a month service charge just so one can twitter. (I am referring to those that often says, "I am broke" but are out buying and paying for these things folks)

I've been keeping a close eye on the market reports, the 10/20/30 year bonds, the European Market, the Asian Market, Market in Dubai, and here in the U.S

our economy remains "BAD" amongst the big boys and girls.

Japan and Europe have declared that they are out of a recession(whether you believe it or not, it's in the reports, I always am cautious with the "reports" but for the arguments sake, let's just believe it's true)

The U.S economy remains unhopeful.

Unemployment is high, might reach 10% in a couple of month.

consumer sales index is low.

YET, the financials are making profits (think about this for a minute, if a company starts from ZERO (or about 1% debt and is 99% debt free, they ARE going to see profits!)

But the financial profit is a QUASI one (Yes, I am making a bold prediction here while I am not one of those talking heads on CNBC, I DO USE COMMONSENSE).

The banks are NOT loaning money, they've raised every charges they can think of that they can get away with legally: late fees, interest fees, and NEW fees that are unheard of in the past.

Every other day, we'd get a notice from one of our credit card companies saying this rate has increased, that rate has increased, there is a new charge for if you do this and/or that...and in the meanwhile, it's getting harder and harder to get loans for anyone including BIG businesses.

And we still haven't seen a true commercial property narket crash yet (hold on tight to your seats, folks, I can smell it coming). I believe it is coming.

most bankers and realtors I talk to believe it is coming.

Yes, there are sales of existing homes on the rise. But has anyone drove by one of those "model-home" open subdivisions? They are deader than a doorknob and they take up a big chunk of the housing market, which is related to the credit market, which is related to the consumer index, which is related to fear.

People are losing their homes and their jobs.

But nobody wants to loan, nobody wants to help. (well, they are not really nobodies, I am talking about the financing giants, Citi™, PeePee Morgan© ® ™ , "Anyone, anyone® ™")

Instead, charges are getting higher and higher and new inventive charges are coming out of the bamboo shoots.

If one goes to a hotel, check everything listed and you might be able to save $10.00 on unnecessary charges.

Airplane tickets? Make sure you read the fine prints about luggages and even your children that used to ride free. They might charge you a toe and a finger for your child (but arms and legs are coming, my friends!)

In a way, maybe it's a wake up call we desparately need...

my friends that are serving 3 years in Europe wrote me earlier that they have truly seen how we have been pampered and greedy and gluttonous here.

I love this country, but it's true....

In the past 20 years, buffet have been popping up everywhere, all you can eat and all you can waste. (before you say, Chinese Buffet is to blame, yes, it needs to take 50% of the blame, as well as Ryan's, Golden Corral, and others)

We have had an influx of "overnight" millionaires demanding over the top uses and priviledges in airlines and hotels (I worked in the hotel industry for close to two years) as well as buidling outrageously huge houses that has 6 bedroom when only two people live in it.

We've become a "me nation" everything is about "me, me, me, me, and me..."

Wait, NO, not EVERYBODY is that way. I have wonderful wonderful friends that saved every penny, pinched everything that they can.

BUT, THEY ARE THE ONES THAT ARE HURTING RIGHT NOW...

they are the ONES that have lost EVERYTHING, and I HURT for them....

then, there are those that continue to waste, spend, buy, and abuse drugs and alcohol when they are complaining about how broke they are. And they are on the rise....

They'll come to my door, asking me to do a simple job, then want me to pay them $20.00 for a shoddy job. But they're the ones that'll sell me a sad story, about how their mother isn't doing well or that their kids need to be fed.

these are the people that I also see at Best Buy later, buying those new gadgets; at the local grocery store, buying the 6-pack or the 20 pack.

btw, did I mentioned that all gambling stocks are doing quite well also?

Apparently, people go gamble during economic hard times when they claim that they have NO money, but will go and spend $500.00 one night on roulette wheel.

I have no problem with people that want to gamble. I like to gamble myself...but gamble with the money that one does not have never made any sense to me. Yet, it is those that are hopeful that they ARE the ones that will hit the jackpot that CLAIM that they are broke, that often frequent the casinos...

and the casinos ARE greedy. They don't care if one has no money to gamble. They will entice one with more credits than they'll ever be able to payback intheir life time, then stuck them with outrageous charges until they suck it all in...

oh, did I "Digest" again?? More like "indigestion" and I need some Pepe-le-peu Pistmal.

Back to the tech stuff....

I love the I-PODS, and I am a techno-phile...

'til this day...I still haven't plunged and gotten an I-pod yet...

I don't have problems with people wanting I-Pods. My problem remains that I'll hear these folks that own the newest games, playstation 3, Wii, X-Box 360,the newest I-phone, the blackberries, and the newest computer and then tell me how broke that they are...and I look at them and I'd look at their brand new game console in their entertainment center and their newest gadget that is hanging around their waist and I want to smack them and go, "WASSA da matta wif you!!!!!"

I don't have a problem with the "DREAM". Free enterprises and free markets and such. I don't want to tell people not to build bigger houses or have bigger yards. I encourage freedom and free thoughts. But, when I look around, and I see people suffering and hungry and are broke. The ones that have worked hard all their lives only to have their savings sucked into a blackhole, it makes me angry....

and I want to take out my ugly stick and go and whoop me some (_!_)'s<---------"THE" end....