Credit Crunch

I read and hear a lot about the credit crunch these days. It seems like people want easy credit, forgiveness for not paying up, higher interest rate on their deposits, 20% yearly appreciation on their houses so that they can continue to tap it as an ATM - sounds a lot like my desire to get my paycheck for the rest of my life without having to work :).

Everyone loves easy money and better if it free - why not? I would take it if there are no consequences. I believe the phenomenon (asking for easy money) we are seeing is a consequence of some of the evils of modern day society - essentially living to satisfy someone else rather than your inner self, buying a house because you want to look good in front of others, thinking owning a home is a status symbol, driving expensive cars is a self confidence thing, the list goes on. I believe that this is all going to end soon in a bad way OR the other possibility is that United States becomes a poor country over the next 20 years or so. Where is the reward and value of savings - savings is for losers :), right?

My prediction is for the following sequence of events
- Bernanke will cut rates by 0.25 basis pts in Sept 07. May be another cut before the end of the year
- Markets recover a bit and hit 14K again by the end of the year
- Inflation starts heating up early 2008 forcing rate hikes
- Housing declines further, ATM resets are higher in 2008 causing foreclosures to soike up
- Benrnanke is a silent spectator to the mayhem as inflation forces him to keep rates steady
- Dollar appreciates, stock market tanks to 8K
- Democrats win the election, blame President Bush for the problem
- Markets continue to decline/steady for the next couple of years before starting to come back up in 2011/2012
- Housing back to the old days of 2.5% appreciation. Real estate agent is an old fashioned job and not a hot commodity anymore
- Zillow.com goes out of business in 2010
- Refin becomes the way to buy and sell homes
- Renting becomes the smart thing

Books Links

Here are links to a couple of good books

A Thousand Splendid Suns

Skinny Bitch

Monetizing free time

There have been instances (not in the recent past though) in the past where I had plenty of free time on weekends or in some cases weekday evenings. Looking back, it would have been nice if there was a way to monetize that time instead of wasting that time drinking beer or watching TV (not all the time, if I had the option I would have used it a few times). Some people would say there were always options blah blah blah and you wasted it. but ignoring those people for the time being, here are some unique requirements that I see for this idea to work
- The work needs to be stateless (I.e you don't take it back with you or think about it when you are done with unlike an office job) - a good example of such a job would be a cashier at a shop or working in someone's garden under instructions
- The work needs to be accompishable or your work needs to be effectively usable in small chunks of time (an hour being the minimum seems reasonable)
- Does not require a lot of planning or lead time to get in and work (i.e you should be able to get up at 8AM on a Sunday morning and decide that you want to work for 3 hours that afternoon)

I have not found any place (other than volunteer work) or website that would satisfy the above requirements

Would be cool if I could go to a website and view what is available near by in the next 8 hours and pick something

Weekend thought

It is just another one of those rainy summer weekend's in Seattle - so much for a desirable place to live - it is not what I say, however I hear that a lot at my workplace. Most people seem to like the place they live in. Is it because they want to feel good about living in a desirable place or is it because they genuinely like it or may be it is because they have never lived anyplace else or some other reason. In general tending to like the place you live in, I believe is a good thing - i think it makes us live naturally. There are always things that people will not like in any place like the traffic, overcrowding, lack of infrastructure, lack of people sometime, etc, the key is deciding which one is important for you and then making a conscisous decision about where to live.

Personally speaking, if I had not got used to some of the modern day conveniences and if I did not have an economic dependency on a job, I would live in the country growing enough to be self-sufficient where I decide my own schedule. May be some day, it will happen..

Meanwhile enjoy a recipe for
Mixed Vegetables Curry

Monday thoughts

I read somewhere that Monday mornings have the highest incidents of heart attack. Week days are man made, it is sad that something that is artificial is causing real death of humans. Since Monday is beginning of the work week for most people, probably work is a major cause for this? Work (Corporate work) is also mostly artificial. I thought 2 artificials made it natural and should be considered positive

What is Retirement?

Is retirement doing what you enjoy or stopping doing what we don't necessarily enjoy? We see a lot of articles that talk about retirement planning, getting rich quickly, using the rich dad philosophy (whtever that means), not many that address what really retirement means

Searching for the definition of retirement on google http://www.google.com/search?hl=en&q=define%3Aretirement brings this up.

The general simpllistic view of retirement seems to be work from you mid 20's to late 60's, save a lot of money and then do whatever you want / enjoy for the rest of your life. Seems a little twisted since atleast I want to be doing what I enjoy for most of my life than only after my 60's or may be I have a wrong understanding of retirement really means. I am not wedded about the above simplistic view nor I would think most people are, but the random thought I am having is humans were not meant to like this. The civilization has evolved to make us this way, live with a formula. I think it is time to breakout of that as a civilization and make the day to day activities interesting, lively and enjoyable.

May be this is what people call living in the present??

Random Thoughts - Amazon Links

Searching for random thoughts on Amazon gives the following results


The Audacity of Hope: Thoughts on Reclaiming the American Dream (Random House Large Print (Hardcover))

Interesting that it picked up the keywords from the publisher name..I have not read the book, the title seems interesting. Wonder what his vision / agenda is for reclaiming the American Dream..Don't remember hearing / reading about his vision.

Housing Market - Driven by Greed?

Though the craze seems to have died down to some extent, I still see a lot of people talking about real estate only going up..May be it does and I am an idiot to think otherwise. I rent since I do not find it acceptable to pay close to 2.5 times my rent as mortage. Buying can severly hurt by cash flow and will prevent me making investments for my retirement. May be I should assume that my home is my retirement investment - looks like that is how most people are looking at it, since I cannot imagine everyone making enough to buy a 600K home and invest for retirement. Is it the changed economy that is causing this shift in mentality? What has really changed? Where are we headed a few decade down the road?

I am sure the banks and realtors want to prices to go up forever, else it can impact their business/livelihood. I wonder what the future generations will do? Will it cause migration of people from the expensive places (West coast) to the middle of the country? Will it cause shades of blue to appear in red country? Who knows what the future is going to look like, it is fascinating to imagine it though. In my imagination, there is going to massive shift in population from the coasts to the middle of the country (and it makes sense economically i guess) and a shift from a global economy to a national economy (since moving jobs to the middle of the country can significantly cut the costs) in the next few decades. What about people adjusting to the weather you ask? I say econimic survival will trump the hesitation to live in not so friendnly weather.

iPhone Madness

Don't understand the iPhone madness? I don't either - seems like there is an endless madness to get the iPhone, probably to boast about having an in-fashion gadget. In my mind, the consumers are being toyed around by corporate marketers, forcing (really?) people to buy gadgets that are un-necessary. I have heard people saying how iPhone is really the next best thing after Alexander Graham (did I get this right?) invention of the telephone - how stupid is that? It is really the corporate matters and wall street analysts hyping up a product to entice the consumer to spend. Why is it that most people can't see through this gimick and stick to their essential needs? Am I the only smart one :) ? If everyone was like me, may be we will always be in a recession and may be it is a good thing for me to be like what I am and let the others spend all their hard earned money on useless things - that way, the economy is not in recession and I continue to grow my investments - may be that is how it is meant to be.

meanwhile enjoy a good indian vegerarian recipe