Friday, April 17, 2009

Speaking of the Economy

So here we are, a horrible economy and things don't look like they're improving. You would think in times like these, one would start stocking up on goods, hoarding their hard earned money, cutting back on luxuries and being more mindful of the news. But....... nope, not me! I'm one of those that think just the opposite. I'm one of those that will see people running away from something and I'll run just the opposite. If people are bailing out of the stock market, I'll jump right in head first. I've always been the type of person that, rather than flow with the waves, I want to know what would happen if I "didn't" flow with the waves. So in this bleak economy, I found a few golden opportunities to snag up some stocks. Even stocks that everyone in the world advised NOT to get, I got anyway. And guess what? I just TRIPLED my money! Wahoo!!! Of course, I'm down some on other stocks I bought, but I firmly believe they'll rise given the time.

Speaking of the economy, what do you guys think? Should our government be spending money to excite the economy or do we impose a freeze like some of the politicians want us to do? Well, here's my two-cents. I'm completely for spending money to excite the economy.... 100%! What's my reason? Basic econ buddy! Econ 101.

You see, when money is spent, it creates a "chain-reaction" that effects many other sectors of the market. Think about this example......
I'm hungry, so I go out and buy myself a burger at some local joint. That local joint was happy to take my business because
1. I'm paying for goods, and
2. I am now a potential "lead" since I can recommend this place to others.
But even better, that joint now has money to spend, so they go out and decide to upgrade to a brand new super-duper-burger flipper... (just humor me for a moment). So they call into "Joe's Custom Burger Flipper Inc" and put in an order for a brand new unit. Now, it gets even better! Over at Joe's, he's flipped (no pun intended), about a new order and starts processing it right away. But oh crap! He's out of plastic materials to make it and he just went through his last stick-on label. Sooo, our entrepreneur Joe emails his buddy Tim, who runs the raw plastic outlet store to ship in more plastic parts. He then calls Jane, the manager of the paper store to get a box of stick-on labels. But here's the problem. Jane is low on paper so she puts in an order for more over at Greg's Raw Materials... who in turn gotta tell the loggers to get back into action. But Jack the logger just broke his chainsaw, so he's gotta head to the nearest toolstore to spend a grip there.

So all of a sudden, that toolstore just made money from Jack the logger, who just made money from Greg's Raw Materials, who just made money from Jane the manager of the paper store, who just made money along with our buddy Tim, because Tim's friend just put in an order for a brand new super-duper-burger flipper AND ALL because you spend $5 on a burger!!!

You get the picture? Not only did I satisfy my hunger, but I also just spurred growth in the Food Industry, the Paper Industry, the Plastic Industry, the Raw Materials Industry, the Logging Industry and even the Retail stores! AND NO, I'M NOT A FREAKIN' DEMO-CRACK!

And that's how we kick-start the economy. Spend baby spend!