Here's what I think...

Monday, September 27, 2010

Perhaps a Beamer?

So I went to the bank to roll over a CD. Could not force myself to lock in less than 1% interest for 9 months. Even if the rates are the same or lower in 9 months, what does it matter? Money sitting in savings accounts, money markets and CD's all over the country is languishing. I know it is important to keep cash on hand for emergencies, but when your banking fees exceed your interest on accounts, a stuffed mattress is more appealing.

What to do?
I could buy some real estate, but I don't know how to manage rental units and don't need (or want) a second home. Besides, I believe the real estate bust is far from over with more unpleasant surprises down the road.

I could invest in stocks. Some are offering dividends that are especially attractive compared with bank accounts. But I am already there as much as I want to be right now. I no longer trust the companies I invest in. They lie on their balance sheets, they lie to their shareholders, they gift wrap any company profits and lovingly bestow them on their risk-taking management teams, adamantly resist any temptation to reinvest profits back into their companies and thrill Wall Street by laying off experienced workforces that will be difficult to replace when (if) the economy recovers.

There are always U. S. Treasuries, a great favorite right now. So popular are they the interest rates are at historic lows and the opportunity for erosion of capital (known as risk to the more blunt among us) is uncomfortably high.

On the other hand...
That 328i in the BMW lot looked awful cute. I wonder how it handles? What harm could an little test drive do?

1 comment:

  1. A fancy car is only a landlubber's version of a fancy boat, which, as we all know, is defined as "a hole in the water you pour money into".
    A tow truck guy just told me he rarely pulls the cheap cars out. It's all the fancy ones with so much electronics that when something goes wrong, everything shuts down & there's no way to limp it to the garage.
    OTOH, a bank account today is kind of like making a backup disc and storing it outside your office. Maybe. If you trust banks.
    Hmmmm....tough choice.

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