What pisses me off is the fact that the rest of the world has to suffer because a few greedy, sleazy cretins on Wall st Screwed Up The prime lending rate problems were known about for ages but of course if an extra cent can be gouged from someone then you do that rather than worry about the implications of your actions further down the track.
I'll bet the EX PM is pleased he is the EX PM and you could also bet that Dad Rudd will be hoping his mates in the "Exclusive Brethren" who it now appears actually run the country via unbelievable donations don't do the Christian thing and bail out on him for a few pieces of silver.
My Fellow Grey Nomads this indeed is scary stuff, not much scares me but this does simply because I have lost control of MY future, not to mention worry about loosing all my super if the sharemarket drops any lower.
Who remembers the Pyramid collapse? Maybe those who remember the collapse of 1928 and have hid their money under the bed ever since were the smart ones. I remember moving my Mum & Dad into a retirement village and cleaning out their home, we found wads of pre decimal currency hidden in some weird places, maybe we never found it all....Dad says he did not know about it and suggested it may have been my Grandmother who lived with them for a while.....
I guess the only thing we can do is hang in there and just hope & pray our banks can hold against the onslaught of "pensioners" withdrawing their funds....

Basil what worries me is we send in great wads of cash, billions and trillions of dollars and it is "wiped off" overnight, the money is being soaked up by profit takers at the expense of retirees and taxpayers, while we bailed out a couple of well known banks, the directors were swanning it in exclusive resorts and awarding themselves multimillion dollar bonuses, we must withdraw from further injection of funds, wall street will even it self out, we should NOT be propping up rich people, they have the resources to pull themselves through, some banks that are not profitable through dodgy lending practices will go under, those people who borrowed through sub prime mortgages will lose their houses, they couldnt afford them in the first place, stop throwing money to the rich, leave our super annuation alone

How does this affect me........well in a number of ways. Our 5 month trip in Feb is now under question, my wife was going to resign and find another job when we returned but given the state of the economy, that may not be so easy. She worked at Mitshubsi until they closed and when looking for new work handed out over 200 resumes for maybe 6 replies. She hates being at home all day and is someone who actively seeks work not relying on agencies etc. Employers must now be thinking hard before employing new staff. Loss in Super is also a contributing factor in hitting the road full time. We were going to use the 5 month trip as a gauge to see if we could afford to do it. Was hoping that we only needed to draw a small amount each year to top up my Airforce pension.However if the large falls continue there will be nothing to draw on. Oh what the h*ll we should just do it anyway.

G'day all. I was wondering when this question would appear.

This is affecting us; we have also lost a large chunk of our super (wonder who has it now)
Our house has been on the market for a few weeks, and not one offer yet. Might not get any either, after that item on 7 news the other night. "House prices may fall up to 40% !!!"  Sensationalist reporting. I bet nobody listened to the other bloke who said prices are not likely to fall much, and may still increase.

Husband may have to get a job soon, as our small home business doesn't make a lot of $. So, all this has put our dream of taking off around the country on hold. We can't afford a motorhome until the house is sold. Not happy Jan. 

And I also don't think we should be propping up the rich people! grrrrrrrrrrr!
(I won't say any more, as I would get banned)

LOL, Jill I think you are safe from being banned.... I agree we at the bottom of the chain seem to prop up the wealthy who in fact could loose big time in all this but always seem to have reserves that they get by taking what we have worked for and own off us to cover their debts. I'm not sure how it works but it seems the bonds, packers and the skases of the world always seem to land on their feet.
Honestly I was wondering when this would happen because they way things were going it was getting ridiculous, there was such a deep rift bettween those who had and those who did not and every excuse that could possibly be dreamt up was being used to gouge proffits for the already wealthy. Housing was at an absurd price, even in Bermagui I saw in the agents window a 2 bed fibro fishermans cottage that had at best a glimpse of the ocean and they were asking $750,850 on a normal sized block....
I'm pleased I'm on super and DVA pension because the first thing to go in situations like this is stable employment. It must be horrifying for someone who has just paid $500000 for a house only to discover it is now worth $300000 and the lender wants to get his $500000 now in full before he goes down the tubes...
I'm sorry I gave my breadmaker away, anyone have any chickens for sale? should I stock up on baked beans?
Mean while our trusty elected representatives hand out platitudes to the masses, guaranteeing $20000 of your savings in the bank, who would have $20K sitting in a bank account attracting the interest of the ATO and not much else.

Basil, we just got some rather good baked beans from our local supermarket for 60c / tin. Want me to send you some? LOL We already grow some veggies, and have thought of getting chooks, but the council might not allow them here in suburbia. The house next door sold a few months ago for a very big sum, much more than we thought it was worth. Now that young couple is probably kicking themselves, especially if values fall as much as the alarmists say. Really, if the media wouldn't sensationalise this financial mess, doom and gloom, people wouldn't panic so much. I think this panic is making matters worse. The link below has some interesting articles; I am not going to say that I believe everthing there, but interesting reading nonetheless. http://www.thetruthseeker.co.uk/index.asp

Jill, I'm no expert on house prices but this "correction" in sub prime real estate motgages had to happen, the investors and big money people new about this years ago, I figure, and I may be way out, but if the investors knew and they had investments in housing then wouldnt you have seen a mass exodus by investors from real estate before the crash??? it is the investors that are driving house prices up, we are relying on the sale of our house to fund our retirement the same as you, we (being carers) do not have super so the sale of the house is crucial to our monetry future, but nevertheless regardless of house prices we are going, if we must work when we go then so be it, we are working now whats the difference work here work there who cares, get sick of working there move on

I have a different view on the thread. I will divulge my situation to a point, so my comments can be matched.

I am selling real estate, but not a house/home, to fund my retirement. I will place the funds in a managed account (share market).

The way I see it is, the companies that are invested in, have not changed. It is just the view of the market, the investors looking for good bucks, has changed.

To protect their squillions, they can afford to more it, but more to the point, if they move it the market goes down. They then can get back in much cheaper. Remember, the companies have not changed.

Do you know what "short selling" is. Very smart, with someone else's money. You "borrow" shares, and sell them to the market so that companies "value" falls, and buy back at a lower price, to replace those "borrowed" - the Rudd Govn has stopped this to a point - no recommendation for the Gov, but a good move.

History has it, this has happened before. Smart people learn from history, and make money. Has the market bottomed - not sure - will it rise again - yes

The only question is whether you can weather the storm, and not turn a "paper loss" into a real one. Speak to your financial adviser, AND get a second opinion as well.

The bottom line to me is, the media now have something to report, and most people I know, only have knowledge from the media. Stop listening to them, and get your own opinion.

My twobob's worth

I think we just hang in there. Like for some it could get very rough but just have to hang untill the roller coaster sorts itself out.
Like 2 bob says get some advice, I have had heaps of advice and was told by a smarty pants that I should keep getting financial advice till I like got 2 independant lots of advice that were the same and go with that.

-- Edited by Ashely at 15:10, 2008-10-12

One good thing that may come out of this is that Henson won't get his normal $200000 for a print, will he?

NO, Basil The sqillionairs, move their money into art, and precious metals (gold) : items of monetary value, not linked to the stock market. Bricks and Mortar: retirement homes for instance, We will always need them, same as child care. That "B", may end up better off, because of us being screwed by the financial market wiz kids.

twobob wrote:

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NO, Basil The sqillionairs, move their money into art, and precious metals (gold) : items of monetary value, not linked to the stock market. Bricks and Mortar: retirement homes for instance, We will always need them, same as child care. That "B", may end up better off, because of us being screwed by the financial market wiz kids.

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Well "retirement homes" are slowing down it seems that the intitial greed that saw these created for the then over 50's are having problems with the investors as people are living tooooooo long and clogging up the quick return that was "planned". I am right into RV's (retirement villages) as I realise that one day, maybe not tomorrow but soon and for the rest of my life I'll need one for me my wife and my dog. A very dodgy and sleazy busness and they think that because if you are over 50 you have "lost it" and they can get you to sign anything, very very dubious I tell you. We have been given the hard sell on many occasions, "If you just sign this we will put you on the waiting list" and when you balk and want to read the fine print you discover that you are signing a lease..... Nup if you are thinking about moving into one of these EXERCISE EXTREME CARE.....

I have found an option that is helping to solve my worries in that regard without tying me down too much. My contact details are on the email addresses if you would like to know details

Marlidarl wrote:

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I have found an option that is helping to solve my worries in that regard without tying me down too much. My contact details are on the email addresses if you would like to know details

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Marlene, unlike most on this forum who show tact and diplomacy and leave discrete messages on your whiteboard I'm rather direct, please post here any good ideas you may have. I have a few but they are not legal so I won't draw the forum into disrepute. PLEASE don't leave us in suspense tell us all!!!!

Those who just let their financial advisers invest their super in whatever, really deserve a good kick up the "A" . Yes returns can be big but so is the risk , the higher the returns the bigger the risk. When you are quoted returns like 20 - 25 % pa you know you are playing in the deep end of the pool. It's like playing a pokie ,Never play more than you can afford to blow. I'm no financial wiz kid but letting anyone invest your dollars in an overseas money pit is like playing in the mine field . With such strong regulations regarding money and investments in Australia, and we still have big ones collapsing ,why would you go outside Australia to invest , Ah! YES the big returns, catch 22 syndrome . I certainly don't like the thought of bailing out people who have made a bad investments calls but the world needs those who have abundances of wealth and those who strive to get there otherwise the have not's will have a great deal less in the end , the have are the people who make the world tick over by creating jobs and more wealth . This is not the first collapse and as long as people think there's a way to make a quick buck it won't be the last . The warning signs on a golbal level have been out there for no less than 4 years that I can recall. The young yuppies out there and the mum and dad investor who went to their bank to borrow money to buy T1 and T2 shares couldn't be told it wasn't a bright move or those who went into reverse mortgages with finance companies were certainly taken for a ride especially now that most of us are out living the capital value of our assets. We have had far to much disposable income for years now and now it's time to pay it back. Recall those days when Christmas and Birthdays were the big ticket item days, not for years has anyone waited for those days to come around just go out a spend spend and spend , most of it on the plastic . The USA is and always has been a monetary basket case. Anyone with a hand full of dollars and a sharp looking suit can start a bank, there are bugger all monetary controls in place and the big end of town don't want any either . When you go into to start up an account and they give you a house full of white goods for signing up there is something drastically wrong. In one of the hillbilly states they even give you a top of the range Winchester rifle for signing up. Life is a learning curve, sharper for some than others. It's not all gloom, at the end of it all the game goes on just with different players and a different coach

Wombat, I agree with you, 110%. My problem is I am not eloquent at putting forth my views, and tend to miss things I would like to say. I have been getting VERY annoyed lately reading responses on News website; a lot of folks bashing Baby Boomers and older generations, blaming us for ALL the financial woes. I am assuming all of us here are similar; worked hard for years to get where we are; first home very modest with borrowed furniture; saved up and paid cash for things, or put on lay-by; worked since we were 16 or so at a low paid job (moi), and the list goes on. I could say more, but would only bore you all, so rant over. ) Have a nice evening all; I am still working, rats.

Jill, thought you may like this - how true A very self-important college man attending a football game, took it upon himself to explain to a senior citizen sitting next to him why it was impossible for the older generation to understand his generation. "You grew up in a different world, actually an almost primitive one," the student said, loud enough for many of those nearby to hear. "The young people of today grew up with television, jet planes, space travel, man walking on the moon, our spaceships have visited Mars. We have nuclear energy, electric and hydrogen cars, computers with light-speed processing ...and," pausing to take another drink of beer...... The Senior took advantage of the break in the student's litany and said, "You're right, son. We didn't have those things when we were young........so we invented them. Now, you arrogant little ****head, what are you doing for the next generation?"

Jill B wrote:

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Wombat, I agree with you, 110%. My problem is I am not eloquent at putting forth my views, and tend to miss things I would like to say.

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Jill who gives a toot about eloquence? Have your say, join the discussion, don't you feel better for having your say? I also agree with everything that has been said, trouble is we can see the problems others have created and blamed us for but no one wants to listen to us because our solutions may mean that some arrogant self serving investment banker has to go without a $1500 an hour hooker for a night and think of those who he is ripping off for his own self engrandisment.

Obvoiusly I lived in a different world. I think upon refection that all this strife started back in the late 60' early 70's when the various Govt authorities were privatised to run at a profit instead of being there as a service. Now everything is in the hands of shareholders and that is the only concern, a profit for the shareholders at all costs.

twobob, hahaha..............so true. Basil, thanks. This forum at least allows us to say what we feel. I get SOOOO angry about those high flying execs with their obscene payouts........grrrrrrrrr machine has stopped, must get next shirt running; still working here.

Well Dad Rudd is going to give "pensioners" from Centrelink and DVA and Carers a hand out to help tide us over till he does something about pensioners in May...But what about the workers who have just had half their Super evaporated into the ether????
It will be welcome, I'll wait till the detail is known before I crack the Moet... Hey Jill I'll be able to buy top shelf baked beans with this payout!!!

-- Edited by Basil Faulty at 20:43, 2008-10-14

You and me both Basil. We get nothing from this, or any other benefit. If our house had sold quickly, we would have been self funded retirees, and got a payment. But, we are still running our VERY small home business, which doesn't pay much at all; we are STILL living below the poverty level, which I have all my life, but I have always managed to make ends meet. Not complaining; I have had an interesting life; x-husband was a mini mafia type, don't think I should say more about that, just I always manged to keep my kids well fed, clothed and housed, despite the "other" stuff.

Hello All, This is my first time on this site. My husband & I have just returned from a 20 week trip travelling around Aust. How wonderful it was. We are, I am afraid, one of the stupid lot who trusted a financial adviser to invest money for our future retirement. We also, are of the Baby Boomer era, & have struggled to make ends meet on a low income. Not complaining....we always managed. However, we received a call last Friday to say that we have lost everything & now have to start paying off our house again. This is a very hard lesson to leaern at our age. Everyone...be warned.

Betty I am not financial guru, but it is impossible to lose "everything". Only if you sold did you lose. Each one of us has a different economic situation. It is the whole of THAT situation, which will tell the outcome. If your home was not paid for before, then yes it now needs attention. The old adage, remove debt as soon as possible and before relaxing. I believe, and would like to say know (but have not lived long enough), every down turn, is followed by an up. Sell on the down, and loose. Wait and all is even over time. Run a business, this happens all the time! To others - wait - keep focused on what is important to you NOW, reduce debt where possible. Basically, grab a beer, get your mates over, - no problems

Yes...we sold. Once again on the advise of our financial adviser. Couldn't take the chance of a further downturn in the market. You are quite right. We did not lose everything. We have each other & a huge debt which we are now addressing. Want to buy a van? Just wanted to warn others not to fall into this same trap which we foolishly did.

Sorry Betty I did not mean to put that much out there, about your STUPID ADVISOR. He is sitting comfortable. How comforting that is - F#$K% Bast$%%&&^. The only good, for us, not you, is do not trust them. Trust should never come into a business decision. We are all capable of bad decisions, at our age it become more important, and we rely on "experts". For an expert to advise us badly, what can you do. You have done what can be done - advise others of your plight. Personally, I would name the bas*tered, so they lost any future business, but that has legal implications for you. In your opinion, what would be the 2 least attractive people or groups, to get investment advise, for my information? Maybe you should PM to me

Jill B wrote:

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Wombat, I agree with you, 110%. My problem is I am not eloquent at putting forth my views, and tend to miss things I would like to say.

I have been getting VERY annoyed lately reading responses on News website; a lot of folks bashing Baby Boomers and older generations, blaming us for ALL the financial woes. I am assuming all of us here are similar; worked hard for years to get where we are; first home very modest with borrowed furniture; saved up and paid cash for things, or put on lay-by; worked since we were 16 or so at a low paid job (moi), and the list goes on.
I could say more, but would only bore you all, so rant over. )
Have a nice evening all; I am still working, rats.

 

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Jill just  express your thoughts it's not that anyone is going to mark you down,  every opinion counts and is valuable to the discission .

I spent 30 plus years in the ADF and we had no option, super was complusory from day one .  I can remember when we got a pay rise, the first in 7 years, and I actually came out 1 dollar better off after tax , super  and  married quarter rent came out, but the cost of living had jumped 34 %  over that period  .  I do feel for those who were only made to contribute to super in the last ten years  as 4 fifths of nothing still equalls nothing at days end , even with the employer putting in their bit  

 My super fund actually lent money to DJ's and Grace Bros at below market rates to bail them out over piss poor business planning  back in the late 60's 70's  and now the government has all this unfunded liabilty  now we are all cashing in and what our pensions.

Don't get me going on how service personnel got screwed over the years by all sides of the political spectrum   and even today we still pay tax and pay medicare levies  on our super  pensions .  Putting it in we got to the max taxed and taking it out we got taxed as a second income if you went back into the workforce.  No tax rebate at the end of the year either  .

-- Edited by Wombat 280 at 15:35, 2008-10-15

-- Edited by Wombat 280 at 15:37, 2008-10-15

Thanks Bob, I probably sounded like a whinger. I WOULD love to name the company, but as you know there are disclaimers written into everything. Really, we should have paid more attention & tried to understand the jargon. We do tend to trust advisors, because we pay them so much to look after our interests. I will let this go now, so I don't let myself stress anymore. What's done is done. We are counting our blessings with wonderful friends & family. Once again......everyone BEWARE !!!

Hi Betty and welcome to the nuthouse, sorry to hear about your loss, my mate up in cairns has now lost everything through his stockbroker selling at the wrong time, it hit him so hard that he went to see a lawyer and it seems (according to the lawyer) that he has a case, the broker, or financial adviser, has a duty of care obligation and apparently, in this case, it was breached and he is liable, maybe if you seek guidance as well maybe a little light.

Hi Dave, Thanks for the tip. We will certainly look into it. I hope your mate comes through this OK. We are so blessed with caring family & friends. Their support & calls to us have been truly wonderful when we were feeling so sorry for ourselves. One thing no one can take from us, is the great time we just had travelling around Oz for 20 weeks. (Hubby took long service). Thank goodness we went when we did. I am enjoying this Grey Nomad site. Loved your hints re porta loos.