A radio station I listen to on the way to work always starts a topic of conversation every morning. Usually I listen to something else because their conversations are usually mindless dribble. This week they have had been talking about the economy so I listened in. Yes the topics were interesting but the conversations were the same old dribble. Monday it took less than a minute to find out that they didn’t know what they were talking about. The topic was 401k’s. They all three have 401k’s with the radio station where they now work. Let me stop for a second and tell you that the radio show is called “Two girls and a guy” and that is what there is.
So the first girl says that she doesn’t know how much is in hers. She then admits that she puts money in it every payday but has never looked at it. Next the guy pipes up and says that he has looked at his and knows how much is in there but has never done anything with it. This is when the third person who is always a “know it all”, speaks up and tells them how wrong they both are for doing this. Next she dishes out some really bad advice. She tells them; no way, you have to work with your stocks if you want to make money. The two students eagerly ask her what to do and this is what she said. “If I buy stocks for let’s say $14.00 a share and I see that they drop down to like $9.00 a share, I sell them and put my money elsewhere.“ Ok let me do the math here. So if you had a thousand shares at $14 a share and you sold them for $9 a share, let me see, figuring here, bring down the zero, borrow a 9….almost done here…… Wow you just lost $5,000. At this rate you will be a millionaire before you know it. Sign me up.
So Tuesday rolls around and the topic is “what would you do if the government gave us all a mortgage holiday? What would you spend the money on?” This is some crazy idea that some really stupid individual came up with. The idea is simple. You pardon everyone for a month from paying their mortgage and they get to spend the money on anything they like. It is supposed to be a way of stimulating the economy. Of course if you are the one who is expecting that mortgage payment to arrive you just got stimulated in a different way. :)
So the guy starts out saying that he would remodel his garage and turn it into a movie room. He would get a 64” plasma TV, surround sound, big comfortable chair, refrigerator, nice lighting system and all the decorations to go with it. The girls both thought it was a great idea. Ok first off just how big is his mortgage payment? I can tell you that it isn’t that big because he then said he would have to finance a little of this remodeling. I have to say that I would buy something a little more sensible.
So my point is this. There are people out there who are probably listening to this and thinking; “Yea man that’s great advice.” And this is the reason we are in so much trouble in the first place.
Thank you everyone for visiting yesterday and today. I think I set a personal record. I visited more blogs and did less work than most days. :)
Have a great day,