Ten years ago, back in October, 2008, the stock market tanked. The uncertainty from the big bank bailouts and near-collapse of the economy was reflected in the wild volatility of the stock market.
The Dow Jones Average, at over 11,000 in the third quarter of 2008 was now below 8,500, resulting in year-to-date stock losses of over $8.3 trillion. The news of government bailouts rocked the markets and no one wanted to be in equities. It was a scary and dismal time and the instability was not to be contained.
Imagine losing your job or worrying about your job security at the same time knowing that your investment portfolio was evaporating. Not a fun time.
Today’s flashback to 2008 follows the buyout of Bear Stearns, how their executives knew the financial reality and how the subsequent fallout of the failure of the large financial institutions was forming. CNBC aired a special, Crisis on Wall Street, on the frenzy of reactions during mid-September 2008 to deal with the quick domino-effect of the bankruptcies of the country’s largest banks. If you didn’t watch it, you can probably catch a rerun.
On today’s vlog session, I’ll be discussing the following topics:
Being the CEO of your personal finances and visualizing your financial future.
A business functions under the following formula: Revenue – expenses = profits
A good CEO works with each component to generate profits for the business.
Let’s take the first component. Revenue – this is the income of the business. It involves monitoring revenue streams of the business and projecting income growth.
You should be doing the same, because without income, there wouldn’t be a formula to work with. Project out your earnings, decide how to manage your current income more effectively or how to increase your current income.
On today’s vlog session, I’ve gathered the following topics – all related to debt:
Flashback to 2008 – Bear Stearns: the precursor of the Great Recession
Assessing stocks – the most important company metric is debt and risk level
Book review: Squeezed. What the author describes as new for our economy is actually not new at all. And by maintaining low levels of debt, you can maintain a high level of resiliency when responding to changes in the financial environment.
How are you managing your debt or is your debt managing you?
I stay in tune with the health of our country’s financial progress by taking in information from several sources. I read Investor’s Business Daily on a regular basis. They provide a gauge of the market and print it right on the front page: Market inConfirmed Uptrend, UptrendUnder Pressure, or MarketIn Correction. I take cues from reports on CNBC and daily newspapers and combine the findings to make good decisions. Ever since I’ve taken my financial position into my own hands, my level of attention is critical to its success.
On a typical lazy weekend, I came across an Amazon Prime flick called The Joneses. All I saw from the description was “a perfect family…” and stopped reading. I don’t like spoilers and I also know that there are no perfect families, so it intrigued me.
I was pleasantly surprised to see some of my factor actors, Demi Moore, David Duchovny, and Lauren Hutton, and as the story progressed, it sent my money-brain thoughts into motion.
The movie opens with the Joneses moving into a new home. It’s in a polished, upscale neighborhood where the possibilities of a charmed life await. With their stately peaks, each house’s exterior represents the image of suburban nirvana.