Cash is King, and in the first 2 weeks of August keeping your assets in Benjamins' is looking really smart. The fact that the market is down over 10% in the last 2 weeks makes it easy to see how volatile investing in public companies can be. Quick Bucks while the Stock Market goes up and Free Falls when it's going down: plunges like these are not for the faint of heart. The experts say the leaders in the clubhouse causing the markets free fall are European debt, American credit scores, government weakness/debt and more crappy debt.
Good debt is how financial institutions used to make their fortune and once upon a time DEBT was used "as needed" and very carefully. In recent decades, debt became so readily available in such a myriad of ways that people acquired "credit" faster than Charlie Sheen acquires prescriptions. American culture/politics/business somehow missed the boat in heading off the overwhelming popularity of debt-heads (ie, crack-heads), many of them even made it into Congress and the White House. Lingering financial worries are largely a result of debt that should not have been lent- and America leads the pack on borrowing. It doesn't help that Average Joe likely doesn't understand what an "interest rate" is.
CAN YOU AFFORD IT? unfortunately turned into CAN YOU FINANCE IT? and hopefully we're heading back in the right direction. Cold hard cash is a good thing to have under the mattress and will help a whole lot if your debt creeps up on you. Don't be caught waiting on next weeks paycheck and by golly please don't borrow from Peter to pay Paul, Luke & the mortgage.
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