I give up - I caught the falling knife.

So, after checking my 401k and seeing it went down (again) a 2nd month I decided to reduce my risky contributions - (small -to mid caps & International funds) and instead increased my guaranteed funds and bonds.


There are a few reasons I made the decision:

1. The DJIA has lost 10% since the beginning of the year
2. The S& P 500 has lost about 13% since the beginning of the year
3. Gas hit $107 today for the first time ever.
4. People with Million-dollar homes - people who should have better credit than me, soon won't because there houses are getting foreclosed upon!
5. The dollar is losing it's traction against the Euro and the yen.
   

Hopefully, that 'guaranteed' amount will help me keep my head above water as the markets appear to tank.

Article/News Bit of the Week

This week the economy is the focus.

Although the Fed cut interest rates today to cheers and applause on Wall St, another statistic came out today that seems to reinforce the idea that the real estate market is not looking that pretty now.

This article: U.S. home foreclosures soared in August - talks about the terrible month of August - for the Real Estate industry anyway.

243,947 homes went on the chopping block in one month! That's a 115% increase in the number of foreclosures from last year.

The sad thing is that August isn't even supposed be the worst month of the subprime debacle. October, is when the majority of those nasty adjustable rate mortgages are set to reset.

To be honest, it doesn't feel too bad to be a 'renter' right now....