How Much of a Cultural Impact Will The Recession Have On Americans?

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I distinctly remember my grandparents instilling me with values that were derived from the Great Depression.  Values that emphasized saving over spending, coupon clipping, living frugally, and only living within one’s means.  These valuable lessons were lost on more than one generation between the Great Depression and last year.  While I do not believe that the current global recession is anything near the Great Depression in terms of cultural impact, there are still some really important and significant lessons that need to be relearned obviously, and I often wonder exactly how long these lessons will remain imprinted on the average American psyche, if they are even resounding with consumers at all.

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The Money on the Sidelines

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One of the biggest effects that the global economic crisis has had on the US economy is the shakeout of billions of dollars from the markets.  Without a real direction and given the large amount of pessimism that exists currently, millions of investors, including some very big names are reluctant to park their money anywhere right now.  Names like Warren Buffet and Jim Rogers, both men having made literally billions from their insights and savvy market calls over the years have both come out recently to state that right now is not a great time to prognosticate, and that they have much of their investment capital on the sidelines right now, primed to be injected at the right moment.  Does this sidelining of investment cash have a lack of leadership to blame for its existence?  Or is it there because like so many other economies, there is v

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Investing In Developing Nations as an Economic Stimulus

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In the immediate aftermath of the most recent global economic recession it is easy to look for ways to capitalize on the reemergence of the housing and credit markets.  If a slow but consistent climb out of the economic hole that was created last fall actually occurs it is likely there will be many new and different investment vehicles offered to investors eager to come back from the severe losses that have been felt over the past 12 months.  As attractive and lucrative as it sounds, investing in developed nations may not be the most rewarding activity.  There are plenty of economies around the world that would benefit from robust outside investment.  These economies are rich with potential and are waiting for a few visionary investors to really turn them into cash cows.

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Iceland: The Economic Canary in the Mine

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As the US economy began to sour in mid to late 2008, Iceland had already been feeling the effects of a recessionIceland?Iceland? and economic upheaval.  A few months before the Bear Stearns debacle, the feeling in Iceland was less than optimistic.  In fact, the economic collapse there was an early indicator of the trouble that lies ahead for America in 2008 and 2009.  Right now, Iceland has begun to thaw a bit, along with other high-income countries that have felt serious economic pain over the past year.  Unemployment has slowed and stabilized at around 8.5% and mortgage repayments were frozen in November of last year, leaving those in Iceland, who were once behind on their mortgage payments with a little more breathing room.  But all is not well on the island between Greenland and Mainland Europe.  Another serious economic shake

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The True Effects of the Stimulus Plan Thus Far

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StimulusStimulusThose who have been tracking the almost 800 billion dollar stimulus plan since it was passed are looking for real effects from this plan on the economy.  Some would argue that these effects have come in the form of a slowing of recent rises in unemployment figures, better than expected retail sales in June and July, and the simple fact that we seem to have averted a catastrophic economic meltdown.  It’s tough to say whether or not the optimism reflected by Bernanke and Paulson is here to stay or even real at all for that matter.  There is much talk of a commodities slow-down in the fall, so it’s little wonder that there is so much nervousness in the market.  Yet a curious fact has been mostly overlooked.  All of this positive economic data has occurred during a time period when only 10%-15% of the stimulus has been spent so far.

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Cash for Clunkers: Did it Help or Hurt Us?

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HooptieHooptieThe government’s recent “Cash for Clunkers” program has been hailed by the left and right as a major success in the fight to help the struggling US automakers and car sales and to ultimately bring an end to the recession.  But in the wake of the celebration of slightly better than projected sales numbers, an important fact has been overlooked.  While people were busy trading in their older, less fuel efficient, and often times otherwise sufficient vehicles for the latest and greatest models on the car lots, the average American consumer has been stuck with a new bill, and it has nothing to do with higher taxes or government spending per se.  Those people who traded in a paid-for vehicle that got 20 miles per gallon for a newer, $30,000 vehicle with hybrid technology that is good for over 35 miles per gallon have racked up a ton of

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Will Commodities Struggle Through September?

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The word on the street recently has been that stocks, commodities, and the economy in general may be poised for a late summer or fall pull back, given some of the key indicators reports that have recently come out involving retail sales and employment.  Certainly there was no expectation that the recession would draw to a close quickly, but we may be finding ourselves in the eye of the storm so to speak, rather than on the mend after a dangerous and severe recession.  There are a few sparks that may serve to ignite a rebound in early 2010, but hope is waning, and it will be more likely that these redeeming factors may only be able to help soften the blow of yet another, more intense recession.

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Precious Metals: Custodial Accounts

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The inability to safely transport and store precious metals is a big turnoff for some investors.  For an investor that wants to physically possess $100,000 in gold, or for someone who does not want to worry about transferring hundreds of ounces of silver or platinum a custodial account makes logical sense.  Custodial accounts can be found at numerous banks in the US and Canada.  These accounts are one way to guarantee that a precious metals investment is safely stored and cared for without having the physical metal in the investor’s actual possession.

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Precious Metals: Online Pool Accounts

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Precious metals investors have long looked for every conceivable edge in the market to get ahead in times of real price volatility.  It’s often very impractical to store hundreds or thousands of ounces of rhodium, palladium, silver, or gold and finding a safe and secure place to keep them is often a major concern.  It’s also tough to sell or liquidate an entire position in a short period of time, let alone a couple of minutes.  Precious metals ETF’s are wrought with accounting problems and other red flags, leaving investors no other option than to steer well clear of ETF’s when looking for new precious metals investment vehicles.  But pool accounts, which are becoming more and more mainstream, offer an excellent way for those investors looking for liquidity, safety, and security, to invest in the markets.

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Will New Silver-Zinc Batteries Replace Lithium Ion Technology? And What Could This Mean For Investors?

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California-based ZPower announced earlier this year that it was ready to offer consumers an alternative to the traditional lithium-ion batteries found in most electrical devices made over the past ten years or so.  These new batteries, consisting of a silver-zinc compound, which would offer up to 40% more useful lifespan and give devices with these new batteries the ability to have a longer-lasting, more reliable charge.  Is the silver-zinc battery technology the next wave of the future in the tech sector or is it just a half step in a long line of technological advances that lead to other, more profound, and ultimately more influential products?

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