How Low Will It Go?

When I have a rough day at work, the only sure way to get out of my funk is to get on the Internet, and look for a retirement place in Italy, preferably with two bedrooms, and a good sized garden. Work has been pretty uneventful these last few weeks, which is always a good thing, but this week, having a job that I don't hate is a useful asset, since the market turmoil of the past week has raised my retirement age by about a decade. When I try to picture myself in my present job at 75, I worry about things that will slow me down, and wonder if walking around on a wet kitchen floor with a cane will violate some OSHA regulation, and whether I will have to have some special spectacles the size of a magnifying glass to use on the computer. Will I have to wear these specs on a chain around my neck, so that in my befuddled state, I don't misplace them? And will they be so big, that they will cause me to stoop over so that I will always be in danger of falling face forward on the wet floor?

Will I have hair on my chin?

I've watched the Dow tank for the last week, going from 13600, to today's low of 12800. Okay, the numbers aren't exact, but a loss of some 800 points in less than a week is significant, and apparently, it was all brought about by some reckless activities in the banking industry. With low interest rates, and cheap money, just about everyone who wanted to buy a house could afford one. And with the invention of HGTV, just about everyone in America wanted a bigger one, with a six-burner convection oven, and a subzero fridge. Real estate was the biggest thing going, the most sound investment you could make, and our houses kept appreciating in value so that we could finally sell it, and buy that 5 bedroom on 1 acre with an in-law suite in the basement for Mom when she gets too old to live on her own. And after the middle class bought into the HGTV dream, the banking industry looked around for some more Americans to suck into the housing market. It didn't matter that these Americans had poor credit, and no real money to put down, the banks lent them billions, and now, since these loans are not getting paid back, the banks have no more money to lend. As a result, all of our 401k's are going to shit, and we all have to plan on working for a long F-ing time.

The FED is on the job. It has pumped some major funds into the market for a short term fix, but looking at the results, it hasn't worked very well. The injection of money into the financial markets began last week, and since then, the DOW has lost some 500 points. I'm not exactly sure where the FED is getting the money from, since we don't really have any, maybe they are borrowing from China and Japan, and we have given China an IOU for our children's future well-being and security. But in exchange, our kids get a bedroom of their own, stainless steel kitchen appliances, recessed lighting, and they don't have to share the loo with their siblings.

If it's the only home they will ever have, at least it's a nice one.

I don't know how low the DOW will go, but I'm pretty sure it's time we all realize that the era of easy credit is gone. Kiss your home equity good-bye, and start clipping coupons. If by the end of next week, our credit cards still work, it might be a good time to deposit them in your office shredder. Pay as you go is the trend of the future, and it will cause a lot of pain in the economy, and who knows how many jobs?

But hey, at least we still have the convection oven.

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