Thursday, March 19, 2009

Now You Know Why We've Been Quiet

We walked the straight and narrow path. We focused on our studies and we became physicians as soon as we could. We went to the US beginning in the 80’s and completed our specialty training expeditiously. Many of us served in remote areas in order to work immediately after residency training.

We paid approximately 40% of our income to various taxes, we worked hard and we scrupulously followed the law. Towards the late 90’s, we took a hit in the internet bubble. We paid our mortgages dutifully, we lived within our means. Our 401K accounts appeared to be growing steadily, our children’s educational funds, likewise. When the value of our homes appreciated, we borrowed from the equity and we invested in real estate property. It was a practical way to pay less taxes and the rental income more than covered the monthly payments. We were living the American Dream.

Now you understand why we haven’t been too visible the last 3 months. We’ve been working extra shifts in the emergency room and we’ve had to extend our office hours in order to see more patients. We had been advised to concentrate on our medical practices and leave the financials to the professionals. Our mutual funds included only the most blue chip of stocks: General Motors, Citibank, AIG, Fannie Mae. While working these extra shifts, we unhappily realize nobody really seemed to know this disaster could happen. Our retirement accounts have been reduced 65%. The children surely can’t expect a free ride through college any longer. Our homes, if we can even find a buyer, are easily 30% less than their appraised values compared to a year ago.

But this is the reason why we have been quiet. We are all hunkered down. We’re all aware more difficult days are ahead and we aren’t complaining, as if complaining would achieve anything. We are still more fortunate than the overwhelming masses of less trained, and therefore less competitive people out there. Of course we sometimes wonder what we could have done different; we could have totally ignored ALL financial advise and simply placed our earnings in FDIC guaranteed CD’s. Screw all those educational savings accounts and all those wonderful-sounding 401K plans.

With the lead story from the New York Times below, who can blame me if in my humble opinion, nobody knows jacksh*t as to what’s going on?
Fed to Buy $1 Trillion in Securities to Aid Economy
The Fed dramatically increased the amount of money it will create out of thin air to thaw frozen credit markets.

1 comment:

Anonymous said...

buy Martin FSHOX...housing will improve in two years