Frugal Moms

I think it’s time to reflect on this huge roller coaster. Although it seems that the FED cutting it’s discount rate may have helped rally stocks on Friday, I wonder how long the band aid will hold? Is this just what the market needs? Will it heal quick enough? I was surprised to see the FED cut the discount rate, especially after it just lent 38 billion to the market. Numerous people have considered the 38 billion a “book keeping record” nothing more. How is 38 billion a book keeping record and nothing more? Please explain, in great detail where this money comes from. If they allow more money into the market our money is worth less. Here’s a frightening thought, what if it really IS just a book keeper mark? That would mean our money is worth nothing. I mean would you describe 38 billion as a book keeping mark?

Anyway, I look forward to Monday with much anticipation. I think Monday the stock market will continue to remain calm. In fact I think for the next week, minus a few blips, the market will remain “relatively” calm. However, I don’t think markets outside the US will remain calm. They are showing even greater volatility than here in the US. England in particular has had a raging market, and the Asian market has been just as insane. By the end of the week they should settle down though as well. For now I think the band aid will hold, unless we hear news of more bankrupt mortgage lenders or something equally as damaging. That might well send this whole roller coaster off again.

Even if the market stabilizes, the economy is still headed south. People have less money due to high oil prices, inflation, and less job creation. Under employment is a huge issue for most families, along with slow business for most small businesses. Walmart said that it is having trouble selling items and they are the national retail leader. If Walmart is having troubles, how do you think Mom and Pop business men and women are doing? If you have the cash to spare, have a heart and buy from the Mom and Pop shops. Walmart takes in billions every year, but hundreds of small business people make barely enough to keep in business. Also, most small business people are much more sensitive to their customers needs, from not stocking Chinese toys to more cash registers open so you can check out quickly. Small business products tend to be of a higher quality as well, and well worth the extra two or three bucks spent. Sometimes, and this I have seen with my own eyes, a small business will have something of higher quality for LESS than Walmart. Even now as Walmart tries to get back to being the “low price leader”, many small businesses are able to compete with their prices. You can thank the high price of oil for that…oh yes and out sourcing half way around the world. Their whole business model is based on extremely cheap and consequently easy to extract oil. Which oil is NOT any more and probably won’t be for a long time.

Tonight no quick ideas to save money or turn left overs into gourmet dishes. I hope you have a great weekend.