Notes and References

^**msc1   **msc1    Here's an example of prudent, 2009,  financial management:    

Some say real estate is no longer a good investment.   With regard to purchasing new real estate investments at this time (Feb 2009) they are correct.   However, holding one's real estate that was purchased prior to the real estate bubble and waiting out the storm appears to be as wise today as it has been for decades.   Here's how to function when purchasing real estate is not a wise use of one's money.

A year after former "Resident" Bush entered the Whitehouse, the evidence began to emerge that the financial system was heading for tough times -- Bush and company's  excessive deficit financing --  a no-win, holy  war against Islamic extremists -- the ballooning on the stock market -- real estate prices rising beyond their intrinsic value --  and outside-the-inner-circle economists sounding warnings.   

With these warnings, wise investors stopped putting new investment money into real estate and instead shifted to gold coins.   In January 2003, a one ounce gold coin sold for about $300.   Today, February 2009 those same coins are now selling for over $900.   That's a 200 percent interest for six years, divided by six, this equals a 33  percent return on ones new investment money.   The next step is to hold the gold while the economy crumbles, while the price of gold skyrockets, and while the price of real estate plummets.   Somewhere near the bottom, real estate will begin to show up a bargain basement prices.  At that point, the wise investor will trade in some of his/her gold and purchase real estate.    .   

Editor's Note:  On January 14. 2010, the price of gold was $1,142.   That's about $240 more than the same time last year.   That's over 40% annual interest on the original, 2003, $300 investment.   Even if you bought a one ounce gold coin last year at $900, that's still a return of over 25% on your $900 investment.