You got it right. Party animal I am not. It’s 11:15pm on New Year’s Eve and I find myself compelled to write a small piece in effort to put some amount of good karma into the universe to eliminate the lunacy that has increased in the financial, real estate and stock markets in the last four months.
The best example I can find to top it all off, I mean, the real icing on the cake - the GMAC bailout. The red flags and bells and whistles going off for this one are astounding. For this company to get $5 billon in government bailout money and to then turn around and offer 0% financing with that money to General Motors customers with sub-prime credit positively astounding. An interesting short take on the GMAC situation can be read here.
Apparently, moral hazard is now a hollow concept.
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Propelling forward into 2009 - there are a few tenets that, in spite of economic conditions, war, government intervention and the like, should prove profitable for investors and entrepreneurs:
- irrational markets bring opportunties to patient investors- whether panic selllig in real estate, stocks or bonds, the time to pick up great deals is to buy when others must sell
- tough economic conditions force weaker and marginal players out-this is good news if you can keep swimming
- new opportunities are opening up - technologies and innovations are stil coming down the pipe
- it is good to be alive - I just like to throw this one in there for perspective
In a slight departure from 2008, I will be broadening my asset classes for investment in 2009. I have been increasingly scaling back my consulting company and focusing more on equity investments and some busines acquisition deals. I am still very excited about real estate, though a little bit more on the commercial side now than at any other time. Deals are literaly falling from the sky. A few of them, believe it or not, have hit me on the head.
Please stay tuned for more from Radical Wealth Accumulation in 2009. Things are looking up.
