After reading the posts by Alex-Angel and Myito, I now understand why the stock market has continued to go up despite all the negative news. It has been going up, therefore it will always go up. Jump in!
Alex thinks that huge numbers of rich 30 somethings are going to save to day. I posit that massive numbers of financially uneducated people are going to drag it into the gutter.
How can anyone think that spending $100 (prop tax) to save $50 (income tax) is a good idea? If you buy right now, you will be paying through the nose for the opportunity to lose big money.
I am sometimes amazed at the lack of understanding out there. I have a friend who recently told me that she was going to refinance out of her 5.25 fixed to pay off 6K in credit card bills. She was all excited because the TV add said that the refinance was free. I went into a long explanation as to why this was a bad idea (it isn’t free, your rate will increase, you’ve got a great loan) but I think she had already made up her mind. She doesn’t work and doesn’t have kids, she could have gotten a part time job and paid it off in six months. Instead, she wants the quick fix. My stomach hurts just thinking about it. What folly.
