Surviving the economic crisis

Posted on October 31, 2008
Filed Under Stock Markets | Leave a Comment

The last few months have been a disaster for the economies of many countries. North America, USA and Canada, has been hit hard similarly to smaller countries such as Iceland which are in a terrible position with huge debts they can never hope to pay back. All this time, governments have been trying to save the current capitalist system by pumping money into the markets; more accurately, the governments and the International Monetary Fund (IMF) are giving banks huge loans in order to continue operations. All this time, I am trying to figure out how to keep myself afloat because let’s face it, no government will try to help us citizens directly; at most, they can give more money to the banks to pay their CEOs huge bonuses for ruining the lives of tens of millions of people worldwide.

At any rate, I realized that our of the many options available to me two were worth considering seriously. One is to run to the store and buy wholesale foods to last me for the next year or two. This way, if things go really bad, at least I won’t starve to death; not to mention that it would be best to convert my “fake” money to tangible goods while I still can.

The other option is to take a portion of my savings and put it into stocks. I looked at the stock market and I realized that some really good companies had their stock value plummet along with everyone else. But this makes no sense because these companies are profitable and do business in areas that are a necessity and not a luxury; these companies were not overvalued and if it was not for the market panicking in recent months, these stocks would not be this low. So, I went out and purchased some shares in these companies and I plan to buy some more next week. I really think it will pay-off in a few months when everybody relaxes and the world economy stabilizes.

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