So it might not be the best way to invest your money. Other people are turning their attention to gold. Gold has long been a great buy in the market. Gold is something that rarely loses it’s value and was the standard by which the dollar was backed until the Nixon administration. So buying gold is always an option. However, the price of golf is rather expensive and that makes it difficult to buy in the kind of quantities that you want. The other issue is that the government can often impose control on the gold and did during the FDR presidency. So, you might want to hold off on your gold purchase.

The other thing you can do is to buy silver. Silver is a great buy for two reasons. One, it is never super expensive. Two, the government doesn’t lay much claim to the silver they get. It’s something that you should seriously consider investing in. If you wait til the price dips to 8 dollars you could be looking very good for a silver steal.

The other issue is that when the market is going well it’s the smaller stocks that you take pride in buying and they often have the most growth potential. The potential on a stock like Walgreens is there but it’s not something that is going to break huge. The issue with going with the small business is that there wasn’t nearly enough trust in the companies in this day and age. Companies are about maximizing their dollars but the economy is down everywhere so it’s harder for businesses still looking to establish themselves to do so.

The smart investor at this point in time is looking to take in companies that are still doing what people need. Proctor and Gamble, Johnson and Johnson. These companies specialize in making things for the home and that is pretty much what people are looking for these days. These companies are going to have the stability that you need if investing right now. Make sure you look into the company before you make the choice to not invest at all. There is no reason to believe you shouldn’t be investing.

While the economy has floundered they have been finding the liberal tactics to reinvent the economy to be awful and tired. That’s why so many reds have been brought into the House of Representatives. To even things out financially. And that is just what the republicans intend to do. So how will this effect you?

The biggest effect will be for those of you who are working in government right now. For those of you that are there are going to be big changes. The name of the game on the Republican side is smaller government. They will be looking at government across the board and trying to find where the office with 10 people would be more efficient with 7 people. It’s going to make things a lot more stressful on some offices and cut the fat on the others.

You can expect that these changes will take time to be implemented but what you should be seeing is a cut across the board in spending and this could be helpful down the road.

The government intervention was necessary to prevent the total economic melt down.

Buffet said the only counter force to the economy was the US Government. He called the US government clumsy, but inept. There is no other institution with the liquid assets to balance the check book. When companies that were once trusted by americans are no longer around, the US government must prevail calm.

The bail out was not fair, it was ugly and costly to most Americans. But If the government did nothing, what would have been the costs then? No knows for sure, but it is safe to say, that doing nothing would have cost far more.

The problems associated with Japan and the economy worries the Obama administration has portrayed only goes to deepen the financial worries of everyone else around the world. Worse than this is the fact that many Americans who are looking for some sort of financial relief through their banks are being turned down flat, and in turn these banks are taking their homes right out from under their feet.

With small businesses closing on a daily basis and soup kitchen around the country in dire need of more food and resources in order to help those in need, there is no doubt that things need to change soon, and those changes need to be big. Community support is a good way to get started, but those in government and big business that have promised some relief need to step up to the bat and start delivering the goods.

The Republicans may face a harsh reality comes from being in charge. Americans want to feel the economy is improving rather than being told the economy is improving by a bunch of bureaucrats. One path to success for the Republicans and Democrats alike may be to turn back to the people. Listen to what real Americans need and work upward from there. People will not agree on every issue, but will respect a legislature whom they can believe is working for the people and in the best interest of the people.

No matter the political affiliation or social leaning, the economy must be improved or America will fail. Whomever or whatever put the economy in the ditch must push, shove or shovel the economy out of the ditch. Borrowing more money from a country who does not share American values or human rights values is not a wise decision. The debt will come due at some point. No one knows if the American economy will have recovered at that point or not. The global market is getting smaller, but the global economy must remain expansive. No country which devalues human rights should determine the value and market conditions for the remainder of the world. When America is strong the world is strong.

Due to a recent study done by credit companies in 2010, at least 45-55% of Americans are not checking how good or bad their credit scores are. The same percentage were given surveys and it reviled that Americans feel that there is no need for financial saving, but to stay afloat month by month is more important! In these circumstances saving is almost not an option.

Studies have also found that many are acclimating debt like never before due to lack of knowledge of how to handle money. In particular, amongst to Latino and African American communities where money management is not top priority, but making ends meet. Within the last five to ten years, the Board of Education has been looking into changing curriculums in the school systems to implement financial education as early as grade school. By doing this it will instill a better understand of how money works and better spending habits.

Hopefully with this becoming a mandatory subject for learning institution, this will help in creating better spending for the future.

Unfortunately, many think that the bill is going to be a tough one to get past in the senate. In part, these thoughts stem from the last extension that was proposed on Capital Hill and which took six months to pass after a lot of scrutiny and opposition fought against it. A big reason for such an opposition is the cost of the emergency funding that the Federal government must face if this bill passes once again.

In the last three years, unemployment benefits have been paid out in a staggering amount, totaling more than $300 billion which is a big reason for the uncommon ground that democrats and republicans find themselves on, as usual. While democrats are ready to pass the bill, republicans are not interested in doing so unless the funds to pay for these emergency benefits are already taken care of. As of now, it looks like they have their eye on unspent stimulus funds but only time will tell how this event unfolds and plays out before Republicans take over many of the seats in January.

In January 2011, the local, state, and federal tax rate instilled by President George W. Bush will expire from its tax cut status. All the taxes will raise sharply, dropping the economy lower than it was before. Where some economists foresee a brighter future in the coming year, it just does not make sense. Not being negative, but looking at figures and statistics it seems than Americans will face their worst nightmare with a “double dip” recession.

People must enjoy tax day 2010 while they are still in it, there is nothing to look forward to in 2011 where taxes are concerned. Not for the average person on the street though, higher taxes, which are inevitable, will mean more power and money for the government, with much less in the private sector. Many government sectors granted President Obama absolution in advance as his campaign promises would be broken soon. Especially his pledge never to raise taxes on households that earn less than $250,000 is questioned. All of a sudden everything is about the tax deficit, but why doesn’t the government cut down on spending. If other countries like Greece can do it, why cannot the American government.

Things like medical care, gasoline and even groceries are hitting consumers hard, during a time when relief is needed more than anything. And still other commodities have risen in value so much that they are at their all time high, such as cotton which is being traded at it’s highest in 140 years. Many experts believe that prices have stayed so low because businesses are swallowing the increased prices in commodities.

On the other hand, a sluggish economy and inflation rate usually means lower pay rates as well. This means that while consumers may find many products and items that they use on a regular basis to be affordable at this time, their pay for work may make it harder to see those savings in the long run. In fact experts maintain that the economy definitely needs a jump start as it’s on the brink of deflation. Federal Reserve banks are thinking about offering lowered interest rates to help jumpstart the economy, but they remain under fire by many.