Saturday, January 31, 2009

Beware of False Profits

photo from 2007 - Fox News

February 2nd is Groundhog Day and we will find out the forecast for the balance of winter. The city that I "Live-Work-Play" in sponsors an annual "Groundhog Day Economic Development Forecast Breakfast" held on the Friday morning before Groundhog Day.

Yesterday I was fortunate enough to be able to attend this free breakfast for the 3rd year in a row. This was, as always, a first-class event. There was a speaker, Dr. Edmond Seifried, Chief Economist from m.rae resources inc. who was sponsored by Heartland Bank.

Dr. Seifried did his best to explain the Housing Bubble, Interest Rate fluctuations and their effect on the economy. His best advice for a rule of thumb to avoid future scams and disasters is the following:
"If it grows too fast, it's a weed."
Simple, yet profound words to live by. Similar to the old adage, " If it looks too good to be true, it probably is". In these troubling times, cooler heads need to prevail. We need to take charge of our finances and reclaim ownership of our choices (both good and bad). In the words of Agent Muldar in X-files "Trust No One". Don't rely on the advice of strangers and do your homework when making financial decisions.

We will weather this storm and things will get better if we avoid panicking and knee-jerk reactions. To quote my husband, whom I've nicknamed "Mr. Turtle".
" Slow and steady wins the race."
Have a great weekend and let's hope that Spring is on the way!!!!


Tara R. said...

"If it grows too fast, it's a weed" ... I love this advice. Maybe it should be posted in every financial institution in the country.

Fingers crossed for a encouraging forecast on Groundhog Day.

My Three Sons said...

I just wrote a comment and not sure where it went so if you see this twice, you'll understand. It came up with an error.

I just wanted to tell you thanks for leaving a comment on my blog. Your encourging words mean a lot.

I'm hoping that the Groundhog gives us spring as well. I'm ready for winter to be over.

Hope you all have a great weekend.


PS I will add you to my blogroll if you don't mind.

terri said...

Sounds like a very worthwhile event. The topic is one the entire country might benefit from hearing.

But I just realized... my kids are WEEDS!

GutsyWriter said...

Funny how that word WEED, rhymes with another word we've heard recently, GREED.
I like your positive attitude and shall keep one too.

GutsyWriter said...

P.S. Enjoy the wine with your dinner, after reading my posting on the benefits.

Mrs4444 said...

That's good advice; I love it. My goal is to just hang on to this house (Mr.4444 still does not have a job, and our kids do not know it yet.) That said, we'll weather any storm just fine, I'm sure. Hope you're doing well through this rough economic time...

Weaselmomma said...

I am completely rooting for an early spring.

OhCaptain said...

Excellent advice! The groundhog will pay for his wickedness.