Wednesday, July 29, 2009

It's about trust...

An economic recovery depends on trust, I believe.

I don't trust that Congress can come up with a reasonable health plan, that will meet my needs.

My credit card rate is 9.9%, which is about the rate I borrowed money from the banks in the 1980's. But I don't trust them not to jack up the rate on any pretense, so I won't be borrowing.

I could afford a part-time employees, but the economy still seems shaky to me. I need good solid confirmation.

I won't expand or add product lines or open more locations or anything of the sort.

I'd like to make another IRA contribution, but I'm not sure that holding onto cash isn't safer.

Overall, I don't think the banks and mortgages and financial institutions learned a damn thing, except the survivors who think they can get away with it. The bonuses and the outrageous profits are offensive to me. I don't trust the economic institutions of this country not to screw me. So I'll hold onto cash, preserve my business, and work all the hours myself.

3 comments:

blackdog said...

"I'd like to make another IRA contribution, but I'm not sure that holding onto cash isn't safer."

At your age as a self-employed person you can contribute up to $6,000 to an IRA per year and deduct it from your income. I don't know what bracket you're in but even if the IRA pays 0% you're ahead of the game. Unless you're afraid that the FDIC is going to go tits-up and your IRA will just evaporate, but if that happens all bets will be off and the smartest investments will be shotguns and hand grenades.

Duncan McGeary said...

Yes, but the tax benefits only kick in on Mid-April. So the question is, do I wait until then to make the contribution and hang on to the cash?

blackdog said...

"So the question is, do I wait until then to make the contribution and hang on to the cash?"

Might as well wait until April unless you see some bank offering a really smokin' promotional interest rate.(Nowadays that means anything over 0.14%.)