In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 3rd decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
is Spinning Me
Billy and Akaisha Kaderli
Fears of recession or even depression are upon us. Economists worry about both
inflation and deflation. Unemployment is running rampant, while gold recently
jumped again to $1,000 an ounce. Meanwhile, the stock market's in the tank, and
crude oil still trades below $50 a barrel, though gasoline prices are up. Home
foreclosures are running at huge numbers, while housing prices continuing to
fall. The government promises to sport record deficits, yet the spending
What the heck is going on?!
The talking heads are saying that now is the time to buy. But I ask, buy what?
Real estate in a declining market? Or maybe stocks? Those are like trying to
catch a falling knife. How about commodities? Have you seen that chart? What
about gold? Oh sure, once it crossed $1,000 per ounce, people in Asia were
lining up to sell it to us. What do they know that I don't?
The world is spinning me, and little of this is making sense.
Five states -- California, Nevada, Arizona, Michigan, and Florida -- are causing
most of the housing problems nationwide, but 88% of homeowners are still paying
their mortgages on time. 92% of the workforce is employed, and most of the 8%
that do not have jobs are receiving unemployment benefits. It was not that long
ago that some considered unemployment rates as high as 6% to be full employment.
Has the definition changed all that much so that now we are in a state of panic?
Social security pays out millions each month, and the vast majority of pensions
continue to honor their obligations.
Yet we are told that things are going to get worse before they get better.
The nightly news reports are filled with gloom and doom, with anchors advising
their viewers that our state of affairs has not been this bad since the Great
Depression. What do you think?
The problems facing our economy are not insurmountable. We have been through
worse. The Great Depression in the 1930s saw unemployment rates near 25% with no
unemployment benefits. There were long food lines, rationing, no Social Security
for retirees, and no FDIC bank insurance. After all of that, the U.S. economy
came back stronger and more diversified.
A trip home
We just returned to Arizona from living six months in Mexico.
Based on news accounts, we expected to find streets littered with for sale signs
and depressed people not spending their money. Instead, on our normal three-mile
morning walk, we found two homes for sale out of hundreds -- much fewer than
there were when we left. The roads were filled with shiny large new cars and
RVs, and the local Wal-Mart's (NYSE: WMT - News) parking lot is continuously
packed. Yet this area of Arizona, we were told, is ground-zero for the housing
The U.S. and the world are having an economic slowdown. No one is denying that
-- and this won't be the last one we eveer face. These cycles and declines are a
way for the economy to clean out the excesses. Recessions and bubbles like the
ones we have seen in both the housing and equities markets have a lifespan, and
even though they are painful, these too, will pass.
If left to run their course.
So, what are we to make of this?
Take a deep breath, now exhale, and repeat.
The world is not coming to an end. The sun is going to rise tomorrow, and the
robins will sing in the spring. Just because there is a recession doesn't mean
you have to be pulled down by it. As dark as some want you to see your future,
the only one in charge of it is you.
Don't let fear rule the day and steal your dreams. You cannot make sense out of
the craziness on the news, so don't let it define your future. Instead, focus on
your goals, find your financial reset button, put your financial house in order,
and keep a steady course.
About the Authors
Billy and Akaisha Kaderli are
recognized retirement experts and internationally published authors on topics of
finance and world travel. With the wealth of information they share on their
they have been helping people achieve their own retirement dreams since 1991.
They wrote the popular books,
The Adventurerís Guide to Early Retirement and
Your Retirement Dream IS Possible.
information about financial independence and travel, visit our