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It is sobering to realize that it is now 2010.  It seems not too long ago we were celebrating the first  graduates of the new millennium, and now it has been almost ten years. For many of us, the 2000s is a decade that we would probably like to forget as it was fraught with natural and manmade disasters.  I think becoming a young adult in the last decade has made me more skeptical, vigilant, and perhaps a little more conservative as I witnessed first hand what uncontrolled excess can do to people and the world.  Anyway,  here is my outlook for the 2010s.

I think for many people this is a decade to rebuild what has been lost in the recent past. Of course, I don’t think the economic recovery is anywhere near complete, yet.  There is still a lot of unemployment and the government is still beating the dead horse of loan modifications and refusing to let the foreclosures naturally roll out.  Nevertheless, many folks are getting on with their lives and I personally know many that have become more conservative with their money.  Several friends are also looking to take the opportunity of the dip in housing prices to buy a home, but unfortunately housing prices are still artificially high right now in the Bay Area.  However, I don’t think the prices of these homes and other materials will rise very much in the next five to six years since people are being more conservative with their money, and the sheen of homeownership has faded a bit.

There are talks of hyperinflation, but I doubt it is going to happen in this decade because inflation only happens when there is more money chasing a limited amount of goods.  What is happening now is that people are buying less, and the amount of products that are being manufactured is not really decreasing.  The factories of China, Vietnam, and Costa Rica are still pumping out tons of cheap goods headed for the shores of America, and it seems that these shoes and knickknacks are only getting cheaper.  I doubt that is going to change in this decade, so it is a good time to buy something that will last for a long time while prices are still somewhat depressed.  Once the next bubble happens and people forget what happened in the 2000s, then prices on everything will rise again.  However, that is also hard to imagine because wages have been stagnant for the entire 2000s.  Prices will only rise when people actually have more money in their pockets.  Now that the housing ATMs have dried up, people will need to find a new source of “money” to spend.  I’m not quite sure what that is yet.

Personally, this decade is definitely a new stage in my life since I am now a mom.  So far everything has been going smoothly, but a child goes through a lot of changes in the first ten years of his life, and I am looking forward to seeing
it.  In a few years I will also turn 30, and maybe then I won’t feel so much like a kid anymore.  I guess my attitude towards this new decade is a bit of cautious optimism.  The best thing I could do is make the best of what I have been given.

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best place buy viagra onlineon 01.04.10 at 8:18 am

Your thinking is very prudent and rational for someone living in the Bay area. I live in the Bay area also and find that people’s expectations are much higher here than in the midwest. Many make $200,000 a year and don’t save a dime. They assume that their retirement will be funded by housing and stock market speculation. For me it all seems very foreign. Very much like a false economy. Driven by debt.

I am presently saving 50% of my after tax income. I have no debt. Our economy is contracting so I feel that this is the prudent course to follow.

I just read a memoir by Benjamin Roth. He was a lawyer during the great depression. As he writes in his journal his main fear was not banks closing or unemployment. His main fear was inflation. In a collapsing economy he and his friends talked of inflation. Very strange.

So I would like to suggest that if The Federal Reserve is able to create any inflation during this collapsing economy it would be a good thing. Since the banks, the speculators and the government are “to big to fail” the only way for our country to get out of all of the debt that we are creating is thorough inflation.

Our nation is presently insolvent. We are paying interest payments to foreign nations to fund our excess. The public sector and the private sector are incapable of controlling their borrowing habit. There are only two solutions. The Federal Reserve printing press or major social change.

best place buy viagra onlineon 01.15.10 at 5:57 pm

We can’t erase the 00′s but we can learn from them! I plan on making due on my promise to get out of debt so that I am not behind the eight ball in another decade. 2010 is sobering in that we are all a little bit more financially wiser – whether we chose to be or were forced to be.

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