New Economy in America

[Apotheosis]

OK, not sure what to phrase the title of this thread, but here are the main bullet points/questions for you economists out there...

my scenario:

**currently unemployed, about to find a job paying in the 30k - 70k a year (within a month)..... college education (recent undergrad) + interest in grad school. minimal bills (less than 100$/month).

Single, less than 9k debt (from college loan).


#1> what does the current housing market + falling value of the U.S. currency mean for america?

#2> what are ways to protect oneself from declining value of dollar (outside of investing in gold, Euro's, other currencies, other assets)

#3> how bad/good can things get? are we really seeing an entrance into a new depression?

#4> are these the questions i should be asking?

#5> recommended strategies for my situation**

[Peanut Butter Jelly Time]

OK, not sure what to phrase the title of this thread, but here are the main bullet points/questions for you economists out there...

my scenario:

**currently unemployed, about to find a job paying in the 30k - 70k a year (within a month)..... college education (recent undergrad) + interest in grad school. minimal bills (less than 100$/month).

Single, less than 9k debt (from college loan).


#1> what does the current housing market + falling value of the U.S. currency mean for america?

#2> what are ways to protect oneself from declining value of dollar (outside of investing in gold, Euro's, other currencies, other assets)

#3> how bad/good can things get? are we really seeing an entrance into a new depression?

#4> are these the questions i should be asking?

#5> recommended strategies for my situation**

#1: This is a great time for people to buy their first homes, then whine two years later when it's worth half as much.

#2: Protection is for people with futures. Live day by day like normal people do!

#3: You're either staring into the abyss, or it's staring at you. Either way, unless the new prez-ee-dantO is ready to shake things up, we're screwed.

#4: Not if you want to stay sane

#5: Mooch, Mooch, Ramen, Mooch. Oh, and move to Kansas or something. Rent/Housing is ridiculously cheap there, obscenely low cost of living.

[Sean of the Thread]

Personally I think you're fucked. Maybe take your extra cash and CD or money market it depending on what you land. Save every fucking penny until shit settles down.

To be honest I'm thinking about investing in some metals myself. China is booming even if they can't make a toy without lead...fuck maybe I'll invest in lead.

[Peanut Butter Jelly Time]

Seriously, those who invested heavily in silver a while back are well off for quite a few years to come... Not sure if you missed out on the metal market or not, but if you feel it's worth the risk, silver is the way to go.

Between July 1, 2003 and November 30, 2006, the price of silver increased more than 204%. Considering the low cost for an intial investment, it has potential.

[Gan]

#1> what does the current housing market + falling value of the U.S. currency mean for america?
It means we're likely to see a recession. Granted we're not in one yet, even 8 months into housing correction... Advancing prices on petrol are not helping either. I wouldnt expect to notice strong signs of recovery until early 2009.


#2> what are ways to protect oneself from declining value of dollar (outside of investing in gold, Euro's, other currencies, other assets)
At this point, you really dont have any assets to protect. Once you gain employment I would advise participating in your company's 401K, if you are looking to invest beyond that - find a balanced mutual fund and start putting your money there.


#3> how bad/good can things get? are we really seeing an entrance into a new depression?
asked/answered - see your question #1


#4> are these the questions i should be asking?
You're the only one who can answer that question. Whats important to you is what's relevant to you.


#5> recommended strategies for my situation**
Get that job and keep it. Establish good credit and employment history, work on advancement and consider buying a home after you have saved enough to make a decent down payment (at least 10% of the value of the home). There are lots of benefits available to first time home buyers - so do your research and find out which programs you qualify for. You have some time, put it to good use and do your homework on where/what/how to buy and start preparing for that.

[Celephais]

Personally I think you're fucked. Maybe take your extra cash and CD or money market it depending on what you land. Save every fucking penny until shit settles down.

To be honest I'm thinking about investing in some metals myself. China is booming even if they can't make a toy without lead...fuck maybe I'll invest in lead.


Seriously, those who invested heavily in silver a while back are well off for quite a few years to come... Not sure if you missed out on the metal market or not, but if you feel it's worth the risk, silver is the way to go.

Between July 1, 2003 and November 30, 2006, the price of silver increased more than 204%. Considering the low cost for an intial investment, it has potential.
Are you two crazy? Silver prices have been plummiting! I think you mean the price of silver has decreased more than 204%, you used to be able to sell 1 million silvers for over $60, now you can occasionally see people selling for as little as $8 per million. I guess investing in lead would be a good idea, but investing in the high cap metals, like rolaren, or other "breakage dependant" metals would be extremely high risk, as the market continues to flood and the buyers continue to dwindle. I think the only substantial investment market would be the padding and weighting markets, unless there is a turnaround on the current policy their value should continue to increase, with the lower cost, potential for payout on re-eval of damage weighting/padding.

:medieval:

[Gan]

LOL

PS.
If you were waiting to get into the precious metals run, you're already late. You might see a little return off investing now, but nothing like if you had bought in a year ago. Gold especially.

[Apotheosis]

At this point, you really dont have any assets to protect. Once you gain employment I would advise participating in your company's 401K, if you are looking to invest beyond that - find a balanced mutual fund and start putting your money there.



Already have an IRA & have been contributing (American Mutual) since 2005.


As far as owning a home: I'm not actually sure that I want to after seeing how screwed other people have gotten by owning one...


I think I'm going to invest in the Euro: about 5 years ago, I wrote a report in business school suggesting an investment in it. currently it's 1.50 - 1.55 to the USD. I believe it's going to hit $2. Problem is investing in the Euro isn't terribly easy.

https://www.everbank.com/ - Allows you to invest in CD's in 25 other currencies..

http://www.money-zine.com/Investing/Investing/Forex-Currency-Trading/

[Apotheosis]

Are you two crazy? Silver prices have been plummiting! I think you mean the price of silver has decreased more than 204%, you used to be able to sell 1 million silvers for over $60, now you can occasionally see people selling for as little as $8 per million. I guess investing in lead would be a good idea, but investing in the high cap metals, like rolaren, or other "breakage dependant" metals would be extremely high risk, as the market continues to flood and the buyers continue to dwindle. I think the only substantial investment market would be the padding and weighting markets, unless there is a turnaround on the current policy their value should continue to increase, with the lower cost, potential for payout on re-eval of damage weighting/padding.

:medieval:

LMFAO

[Hulkein]

30-70k is quite the range of possible salaries, heh. Hope you get closer to 70k.

[Revalos]

Yeah, that's what I was going to ask...a 40k salary range? Can I ask what company this is that you are getting a job from?

[LMingrone]

How are your bills less than $100 a month? Is that possible?
Is this a sales job?

[Asile]

#1> what does the current housing market + falling value of the U.S. currency mean for america?



As far as the housing market... Talk about insanity! My area (Richmond, VA) wasn't so bad, but northern VA/DC was...disgusting. Someone else mentioned a correction with it, and I really do think that's what's happening now. For those uber-investors, who were trying to make lots of money off real estate, it sucks. For folks like me, who are actually living in the house they bought, it's not such a bad thing.

If you're really considering buying a house (which I think is a great choice if you're going to stay in an area for a few years), I have 2 really big suggestions:
1) Get your job and save for a year to get a good amount for your down payment (the bigger a down payment you can put in, the better).
2) I shouldn't have to say this now, but for god's sake get a fixed rate mortgage. Even with my crappy credit, I was able to lock in 6.25% about 3 1/2 years ago, and the only reason my payments have gone up slightly is because my monthly payment also includes a bit of money to go into an escrow account for my real estate taxes and homeowners insurance...and assessments have gone up a bit in my neighborhood. But yeah, while others are panicking 'cause their mortgage payments have jumped up, I'm sitting smug knowing I really don't have to worry.

[Apotheosis]

re: Salary Range -

My experience / skillset is such that I can either apply for a management position or stick with grunt work.... currently my experience / skillset as a "grunt" in my field is worth approx. 28k - 35k salary.. management positions in my field cap at 90k - 100k+ for senior/top dogs.. junior management positions at 40k - 70k.

I used salary.com & trade group salary survey info as a basis for my research.


I have roughly 10 years of professional experience in my field + a bachelor's degree.


My current cost of living is super low because I am staying with some close friends rent free for 6 months until I get settled in. (i recently relocated)

[Revalos]

My experience / skillset is such that I can either apply for a management position or stick with grunt work.... currently my experience / skillset as a "grunt" in my field is worth approx. 28k - 35k salary.. management positions in my field cap at 90k - 100k+ for senior/top dogs.. junior management positions at 40k - 70k.

OK...since you aren't telling us what "your field" is, I have to say that in an economy like this...you aren't going to walk into any junior management jobs. Be prepared to be told that "all we have availiable is XXXXX (grunt) position, even though we know you can do management." I got fed that line one time, so I told my interviewer to kiss my ass and walked out. I got called before I got to my car offering me the job I was qualified for.