How do I invest~~~~

Hello My Diva Dahlings,


I know, I know---where Have I been? Well I won’t bore you with details; except that I’ve been spending time with my family and a few dear close friends, traveling here and there with them and taking care of some medical and dental needs as well, as one gets older, things take a bit more maintenance. Not to worry I’m doing fine, just a little older, a little slower but no less a Diva.


I can also assure you that my little diva darling Princess is doing very well and has been traveling with me, Juanita and her family are also doing well, while I’m gone she is free to come and go as she pleases, and she has been making arrangements to have an eye kept on my home.


I have been asked by some of you darling Diva’s, how do I financially live? Well I’m not the “grasshopper” that fiddles away the bounty of spring, summer and fall, I do put away for the winter, and yet I’m not overly working like the ant, but working enough to maintain a life style that is comfortable for me.


Yes Darlings, the operative work is “comfortable”. Depending upon where you live, an income of $150,000 can seem like a fortune, but only if you live in Tennessee or other mid-states, if you live in California or New York especially in the Big City or San Francisco or Los Angeles you are barely middle-class.


I’m not saying I earn that much, as a matter of fact I’m not saying to you how much I earn, but I do live very comfortably. You see it is all a matter of perspective. I’m not a billionaire, no, with that comes headaches. But I’m not on food stamps either. Although I can understand the difficulties of those in which circumstances requires them for government assistance.

I was fortunate, my parents were very savvy people, Dad worked hard, worked his way though college, was smart enough to make very good contacts with people (now a days it’s called networking), lived within his means, saved, did his best to stay out of debt and (here’s where its important) conservatively invested.


Mother too came from a hard working family, went to business school, listened, lived within her means, saved her money, but as I said she listened very carefully and like Dad investigated before investing.



Dad was a lawyer, he handled mostly business contracts and mergers etc, he met Mother and she worked for him, but they had a partnership much like “Perry Mason and Della Street”, they worked as a team. They first became good friends and then discovered they loved each other and married, Mother continued to work for Dad after they married until the first of 3 children came along, but even then she would work in the office part time, making arrangements with Grandma to watch us and then she’d come home prepare dinner and then took over checking our homework and putting us to bed. When we were old enough to go to school, she’d send us off, go to the office and then at 2:30 leave to pick us up.



We children were loved, I’m not saying it was a perfect “Father Knows Best” situation but even we as children were included in any decision making, we were not sheltered, our parents were honest with us.



So how does that describe how I live financially? First it was by example from our parents, I say “Our” because I have two brothers, one older and one 18 months younger, My brothers shared a bedroom and I had my own, Our parents bought a house which was easy to expand if needed and it did go to eventually 4 bedrooms as Grandma (Mom’s mother) moved in with us after Grandpa died.



I and my brothers were immersed though Dad and Mom’s instructions on investing and financial business, Dad would talk frankly to us about business dealings that had developed, in some cases were developing, sometimes he’d put us to work to find things in the investment papers or at the Library going through the out of town newspapers.



Dad told us about the Rothschild’s and Hetty Green (the witch of Wall Street), Andrew Carnegie and other successful business people, although for a woman to be successful was rare and looked at with suspicion, especially in an environment in which women were looked upon as property and not having any business sense. Luckily my parents and Grandparents were not of that mind-set.



In my previous postings I talk about how to learn to be frugal with the “Make do, use it up…etc” routine, and also to not live beyond your income, please go back to those postings as a refresher course.



Dad also told us that even in the Bible (we were and are Catholic) it talks about money, one needs to read both the old and new testament. No I’m not talking about the Biblical Money Code that Sean Hyman speaks of---its there really for anyone to read and learn from, Hyman just uses the biblical teachings to get some real foundations across to us.

Something that was already taught to me and my brothers by our parents.



First off, one has to avoid the “Love of Money” and realize it is simply a means of exchange to buy goods and services, but don’t waste it or horde it, make use of it to make money, but do not squander it either, if you have 2 dollars, save $1, then divide the remaining dollar in half, 50 cents to pay for your daily needs, the other 50 cents to invest in or with.

I call it my thirds rule. With the dollar saved divide that in half, 50 cents into a regular savings account, the other 50 cents into a long term retirement account, by having a regular savings account you’ll build up money for those sudden expenses, like a roofing problem, or car repairs etc. this way you will avoid going into debt by using a credit card, unless it is something very extensive. This is where a Budget rule is important.


O.K. Darlings so from an early age, my Dad played a game with my brothers and I, using pretend money, such as worn out or incomplete card decks, Aces were $1, 5’s =5, 10= 10, Jacks were 20, Queens 50 and Kings 100 dollars. On used envelopes Dad would write down the stocks we’d choose listing the number of shares we’d buy at the amount that the stock was going for per share.


Now as part of our “Homework” we had to investigate the solid foundation of a business whose stock was listed, then we’d watch to see how it would do, if the price per share was low we’d buy, then we’d have to see what it was going to do, and make a decision on it. Also we’d have to watch to see how much in dividends did the stock pay out, those dividends were written on the remaining cards, at the end of a certain period of time, usually 6 months, Dad would note how we were doing. Come January 1st Dad would announce who did the best and would get an increase in their allowance based upon results, those who didn’t do so well, well if they did do fairly well, would get an increase but only slightly, if our stock choices failed, our allowance did not get an increase.


You certainly can see the incentive here.


Hetty Green’s motto was “Buy cheap and sell dear” meaning buy low but sell high, the Rothschild’s based their investments on information gathered, that is how the head of the Rothschild family worked, during the campaign between Wellington and Napoleon, many investors had heard, (incorrectly) that Wellington was losing, but Rothschild had one of his sons near the battlefield and set up a system of immediate information relays, using carrier pigeons and light systems to send signals to him what was exactly happening, so when people were selling in a panic he was buying, and eventually when the real news hit the London exchange, Rothschild was in a position to make a tremendous profit.


Hetty Green was the same, this was told to me by my Grandfather whose brother worked at a bank that Hetty held her “office” in, through various contacts among the working class and clerks Hetty could gauge the worth of a company and therefore its stock value, even if the stock appeared to be going down, Hetty would know of things in the works that would bring a profit to the company, so when the stock price was at its lowest Hetty would buy and then when the company turned a profit and its stock value went up, Hetty would hold and hold until she felt it had reached its possible peak and then sell it at a profit. Grand Dad said that the clerks at the bank were very protective of Hetty, why? She would make small loans to them at a very low interest, and even would extend their time to pay it back, something that is very rarely mentioned in any biographies about her.


Hetty was cheap, rotating between just two suits of clothing, living in the most inexpensive rooming houses, buying the cheapest cuts of meat, walking everywhere, even avoiding doctors to treat her son’s injured leg, which he never condemned her for.


To her Money was a weapon to be hoarded, not squandered, she in a way took it to the extreme, but even the Rothschild’s did not live extravagantly.


So let’s look at investing----

Rule one----never invest more than what you can afford to lose


Rule two---never invest all your money into one stock, diversify


Rule three---do your homework, make sure that the company whose stock you’re interested in has a solid foundation to be able to ride out a lot of economic storms.

On Rule three this includes, how well is the business run? Is their management team solid and looking at the future, without over expansion? Is their sales pipeline large and are sales increasing, are their customers happy? Does it have a big market capitalization with plenty of liquidity in stock volume? AND This is the Most Important…is the company worth the stock price you are going to pay.

Remember Darlings buy cheap but don’t buy a cheap company.


Everyone remembers that stocks slide up and down on a roller coaster, so even with doing your homework if there is a stock pull back right after it takes a position that does not mean it’s a bad investment. This is where you have to be like Rothschild so that when it appears that a stock loses value this is where you need to review in your mind why you bought it and hold on. Do not allow Greed or a quick turn over or even fear cause you to panic

And don't buy a stock because a friend, or relative says its a good thing or the latest thing, it could be a disaster if you do not do your homework.  Solendra was one of them.  Fortunately I did not buy into that.

The best way to see how a stock performs is to look back on its track record for the last two possibly three years. For example if a company shows what I have just explained to you as still being solid it is solid.


John Deer Tractors, everyone needs that from the homeowner to the Farmer.


So with Rule Three you are doing a fundamental analysis of an investment


Rule Four---determine when to buy --- this is done after you have completed Rule three. So you turn to a technical indicator called the relative strength index, this will tell you when a stock is being oversold or overbought, on a scale of 100 if its under 30 the stock is getting cheap because people are selling but when it starts going over 80 on the RSI scale then its getting pricey---why? Too many buyers are buying it


Warren Buffett has used these two principals to see how a stock is going to do, it is what caused him to stay away from those start up companies that had no foundation, even I stayed away from Facebook stock when it opened and then it started going down and down, but just to be a little cagey I bought some shares when it looked like it was going to go for a $1 a share, then slowly it began to show its true worth.


So when you see a stock going down on a company, a company that you know has a strong foundation based upon the questions I outlined for you don’t be afraid.


Although I have to admit I did “Take a Flyer” on Facebook.


Because this is where you grab your courage and work outside that box, and that may mean buying companies that people don’t like, when you see massive selling hitting a stock on a company that is solid, that is when to look for the bargain. Don’t allow Greed or the Love of Money or your fear of losing blind you to an opportunity.


This is where you look for large volume spikes and then shows steep declines. Apple is a good example, Steve Jobs dies, Apple stocks went down, panic selling, but now a time to buy at a lesser price, because if Apple is any good it will steady out even without Steve Jobs, because you are looking at the true value of the stock and the foundation of the company.


So Rule Five---Ride out the Roller Coaster, it may take weeks or months but you are in for “The Long Haul”


And that is what my Dad taught us, “Don’t buy for profit, buy for the long haul, for a generally steady income to serve you into your old age and beyond” SERVE YOU; in short have your money make money.


With my Facebook stock once I did my initial purchasing I use the dividends from that stock to buy more stock, the same with Apple. Eventually I will have those dividends be paid directly to me, like my other stocks.

And this is where we come to RULE SIX:

DO NOT LIVE BEYOND YOUR MEANS

Even though I have a very, very good income, I determine how much I will need to live on per month, for that I have 2 checking accounts with separate debt cards, the first checking account will pay insurances, mortgage, utilities, medical/dental. I pay those bills immediately, I do not procrastinate.

The second account is to pay for Food and sundries, including if I want to treat myself and some friends to lunch.

Then I set quite a bit of it aside, for that I have 4 savings accounts, one for emergency repairs, one for fun things like a vacation, one for any increase in living costs so that I’ll have a chance to re-do my budget and one to purchase things as needed such as birthday gifts or replace something in the house etc.

I know that having that many accounts can be a bit mind bending, but I keep cash books on each, and each book clearly labeled, being able to call in to the bank and listening to the auto response is very helpful as well as logging in each evening any purchases.

For that you HAVE to be DISIPLINED.

I know people who have to have a new car every 4 to 5 years, once its paid off they buy a new one and are back into debt, I had my Caddy for nearly 20 years and was only beginning to consider buying a new car if it appeared that it would not pass smog or I had to have it worked on long and hard to pass smog, but that was taken out of my hands when some teenagers stole it for a joy ride and wrapped it around a pole.

My current car I will keep until it is not repairable anymore. Don’t over charge on credit cards, use coupons, watch for deals, on a number of things you can buy at either Target or Wal-Mart, on other things buy quality because you want it to last a long, long time.

Don’t buy a MacMasion when something smaller will do.


I have only 3 credit cards, one of them is a gasoline card, the other two are bank credit cards, one is for any auto repairs or if I’m traveling, the other when I want to purchase clothing or items for myself. On all three I watch my balance very carefully, and pay them down immediately, usually within 3 to 4 months. This is where the savings accounts come in handy.


Really one doesn’t need more than 3 cards plus your debt card(s). One handy device is being able to pay over the phone, I have a small date book that lists when a bill will be due and with the phone numbers of those cards and if I’m traveling I can call the credit companies and pay over the phone without a fee.


Some people prefer auto pay; I do that for the Utilities and the home mortgage.

To be able to balance all of this I look into what I Need to buy or pay, this includes property taxes, medical/dental insurance, auto and home insurance, utilities, home mortgage, Food, medicine. These are NEEDS.


Everything else is WANTS, well I need a good pair of walking shoes, I have them and I have them re-heeled and re-soled and will do it until they are worn out, one does not need 20 coats, a good winter coat, a good raincoat, a light suit jacket, and a lovely shawl, plus a few sweaters, until they wear out.


I don’t drive my car everywhere, I’ll use public transportation, and it works just as well, so it saves on wear and tear on the car, if you have to do a lot of errands then plan on the best use of your gas.


My clothing is classic, so is my jewelry, I go to the Library for recreational reading and magazines, even DVD’s and music, there are some things I do buy but that is because I consider them hobbies. Remember the simple things are always best.


But again always save, determine needs vs. wants, and look for the best deals from food to travel, avoid the credit card use this is where cash money is important by using your credit card you are falling into temptation on buying a “want” and therefore living beyond your means, and don’t be extravagant when there is no need. Network with people who can help you achieve your goals and be genuine.


And remember there is Good Credit and there is Bad Credit, Good Credit or debt is paying on a house, Bad Credit (really debit) is having 20 charge cards at rates 15% to 29%, they do not give you any return, whereas paying on a house is a tax write off.

Now my Diva Darlings review what I have posted before, be sure to have a Good CPA who Really knows the Tax Code, keep receipts, keep records, and keep a good accounting of everything. It pays in the end my Darlings


And remember----YOU ARE THE CEO OF YOUR OWN COMPANY—it is called your Life.

And here is where we come to Rule Seven:

Remember those who are less fortunate.  

This means donating to charities to help the needy, like Salvation Army, your Local Food Bank, charity walk for Cancer,  your local Animal Shelter or Nature preserve (yes we need to remember those who cannot speak for themselves),  I donate to "Cover your Cop"  this is to buy bullet proof vests for Police Dogs as well as other charities.  You can even do it in memory of a loved one or a friend.

So just as the money flows in, be sure to have some of it flow out for a good  and worthy cause.
Until Anon, Kisses Darlings

Thoughts on Things~~~

Hello My Diva Dahlings,

I know---What!!??? A second post in the same month??!! Well I've been thinking on things and laughing about things.

My little Labor Day vacation has come to an end. And what did I do? Well there was the Scottish Games this weekend, Bill and Irma took me to them, lots of fun and different too.

I did vegetate a bit, tried to sleep in but my little Diva Darling refused to let her "Mommy" sleep in. Well it really was good and healthy for me to get up and walk anyway.

Juanita is back this afternoon, and she is fussing over things, it seems we've had to call in the plumber, as much as she has tried the sink is stopped up. Usually we'd have Manuel work on it, but he is working longer hours this week as one of his co-workers is out with an injury. The plumber is here and Juanita is handling it, I do not argue with her about these matters.

I saw on the news that Obama is having a low rating with the public and so are the Republicans, but what about the Democrats there is no talk about their ratings.

Obama is talking about putting people back to work, he's talking about construction jobs, but there are other jobs out there that need to come back to the States.

Now this is just my opinion, but if companies were penalized for outsourcing and if higher tariff taxes were placed on imports, then jobs would have to come back here, now because of unions and wages things would cost more, but if the unions would work with the government on having people working, things would level out. The fact of the matter is that when people invest and expect a high rate of return on their stock holdings, it sends prices up sky high, and we should go back on the gold standard so that a dollar truly equals a dollar.

Of course if the U.S. were to be the first to go back to the Gold and Silver Standard there would be an economic shake up, but if countries like, Switzerland, Germany, England, the U.S., Canada were to go on that standard at the same time, it would equalize.

Ahhh wishful thinking on my part, and someone would point out flaws, BUT it is TRUE no matter what, jobs MUST come back to the U.S. the outsourcing MUST STOP.

And now onto something Fashioniesta----Well this weekend I will be going through my annual closet clean out, Constance and her oldest daughter will be here to help me, and I know that since they are also my size, who is going to be expanding their closets.

But I also have to go through and weed out what is worn out as well, and then do a list of what to replace, first on my list is my bed room slippers---it seems that Princess has taken to chewing on them, so they will become her new toys.

And what Constance and her daughter Isabella do not want and are in excellent shape I will take to the consignment shop for some extra change.

And here my Diva Fashionesta's is where you can make some money and save money too. The first is to weed your closet, what doesn't look good on you take to the consignment shops to sell for you for either cash or credit, that way you can shop there without putting out much in the way of funds.

What doesn't sell or is taken by the shop then have a yard sale, then what doesn't sell at the yard sale, donate to a charity, either way it is "cash" either having it in hand or by tax write off.

Another thing, the other day by chance I was going to the local Thrift store and found a brand new purse by Guess, and another that was Kate Spade also brand new and the prices were a steal. So if you need to build up your wardrobe check the consignment shops and the better Thrift shops for bargains, but don't buy any thing if it doesn't meet your requirements or has a serious defect. I did make an exception I bought a Paloma Picasso handbag and all it needed was one strap repaired and my shoe maker did a marvelous job.

So if it's an easy fix then get it. Also check out the bargains at Marshall's and T.J. Max, but remember always go for a classic style that will last, never a flash in the pan. If in doubt always buy the September and March issues of Vogue, Vanity Fair, Elle, Allure, Harper's Bazaar, In Style and any other fashion magazine that you like, granted they weigh a ton, but rip out the styles you like and put them into a cheap binder that way you can refer to them when you go shopping.

Another thing that I do is take pictures of my purses, shoes, clothing, coats, hats, that way I know what I have and in what colors as well. It's a good way to keep inventory, also keep the receipts for 1 year in case of fire or theft.

Another thing is to go through your makeup, anything that is more than 6 months old, with the exception of perfume, should be tossed to avoid infections, especially mascara.

So spring and fall do your closet clean out, and yes you CAN wear White after Labor Day. I'll explain why that rule came about another time.

Must go, the plumber is done, time to pay the bill.

Until Anon Darlings, Kisses

"Egg Money"

Hello All My Diva Darlings,

It's been a while since I last blogged, but as in anyone's life things have been busy for me.

To enumerate I've been sprucing up the garden with Juanita's son-in-law's help.

Repairs to gutters on the house, those rains did stress them. A new Roof as well.

Having my lunches with my "Ladies who Lunch" whom I'm happy to say are doing very, very well.

My late husband's company (or office) is doing so well that they are expanding, not too big but to accommodate a few new hires. This benefits me indirectly.

I've been visiting my family here and there and will be going up to my brother's cabin in a week or two for a delightful vacation.

My investments are holding steady, my health is good, little Princess, my family and friends, Juanita and her family are all doing well despite this economy. We are all learning to do more with less.

And that is the my lesson for today, learning to do more with less.

As everyone knows it pays to comparison shop, it pays to decide if it's a want or a need, it pays to find out if it's cheaper to fix or replace, and it pays to have "Mad Money".

Now what is "Mad Money"? Well my Mother told me to always have "Mad Money" in my purse but to not inform my date that I have it. So I always made sure that there was a special compartment in my purse for the secret stash of funds.

But where did the term come from? Well back in the 1920's during the time of speak-easys and prohibition, if a girl got mad at her date and wanted to depart, if she had on her cash for a taxi or bus fare that was called "Mad Money" so she would not have to be dependent upon her date or the kindness of strangers for a ride home.

In a way it was a way for a young lady to "Flex her muscles" to show she was independent and not under the control of someone else be it boyfriend or husband or even the friends she was with.---"Mad Money"

Besides "Mad Money" there is also the "Rainy Day fund", the "Egg Money", the "something put aside" fund.

So what are all of these?

Let's start with "Egg Money".

One of the easiest ways for housewives or farmer's wives to earn a bit of extra funds was to raise chickens---chickens were a self renewing animal crop--- with a dozen or two dozen hens and one rooster, you had eggs, new chicks both for food and sale. Yes for sale, lots of grocers or butches would get their eggs or chickens for sale from these little homemakers, who would sell their excess eggs or chickens for profit, back then feed was cheap. The woman then had extra money that she got from selling her eggs and excess chickens. "Egg Money" This was set aside for something special or for emergencies. But it did give the woman a sense of independence.

"Rainy Day" fund---this is a savings account or a jar or some holding spot where any spare change was put aside for emergencies, one never knew if the roof was going to leak during a bad rain storm, and if that happened, at least you had money for supplies or to hire someone to repair the roof or fix the porch or car or wagon or pay for the unexpected Doctor's visit when someone came down ill.

"Something Put aside" Fund---this was important eventually there would come a time when it was difficult for one to work at least full time---this was really a retirement fund, to have something to live off of when one couldn't work anymore.

But in the old days pretty much everyone worked until they died, so if nothing else it paid any left over bills, the funeral, and would leave the surviving spouse with something.

And dear Diva's that is what you should do as well, if you manage to be able to finance yourself so that you can live on less than your income, set aside that spare change for your "egg fund", "Mad Money", "Rainy Day", "Something Put Aside" funds.

O.K. in today's modern terms how would this translate?

"Something Put Aside"---this can be called your retirement fund, your 401 K's, your investments, Your Roth IRA's, and yes even the retirement fund from your company and anything in Social Security---they all do add up.

"Rainy Day Fund"---This is something that you can set up as a savings account granted the interest rate is low but at least it's set aside for emergency repairs, be it your car, the toilet, a broken window, no matter what you should have funds set aside so you won't have to worry about where you are going to get your money for it.

"Egg Money"---This is to save up for either something special or to just have to draw on should you be laid off, how does one get this money? Yard Sales, selling your unwanted clothing on consignment, recycling those cans, bottles and plastic, picking up those unwanted pennies that people toss out of their pocket. Extra lose spare change in the bottom of your purse. Even money you earn from a 2nd part time job.

"Mad Money"---This one is easy---always have a secret stash of funds in your purse to cover any transportation, find out what are taxi fares, discover the best bus routes home, have a transportation card with funds on it all the time. For example in my area we have what is called "Clipper Cards" for our Bus service, we also have Rapid Transit as well, I always keep funds on those cards in case my car breaks down or if I should get very upset with my Date. You can also have cash as well, but these cards are a life saver.

Now there is something else you should consider---your income tax refund---if you are lucky enough to get a refund there are several ways you can utilize it. Some people will apply it to their property taxes, some will put the whole amount into their retirement fund, I suggest that you split it up into those funds that I have mentioned, with the exception of the "Mad Money" unless you want to add an extra $100to be safe.

No matter what you can always find ways to find those little extra coins to put aside, and there is always something wonderful, a comfortable feeling knowing that you have those funds to tide you over without having to put an unnecessary dent onto a credit card.

If you are just coming on to my blog my Dear Darling Divas, be sure to read my earlier postings for more suggestions and information.

Until Anon Kisses Darlings.

A belated Update

Hello My Diva Darlings, Hello!!

I know, it's been a long time, but I only have time for a quick update.

I've been busy paying property taxes, having my income taxes done and plumbing work, then I came down with a cold, and on top of that I had to go in for a kidney stone operation, it was so hard to sit up.

I didn't want to put a strain on Juanita but she knew of a friend who is a nurse who does private care and she came in to help me during my getting well period.

My friends have been helpful and my family as well, but both Juanita and her friend have been guarding me fiercely so I'll get well.

My ladies who lunch have been keeping tabs on me, and all I can say is this for now, if you have been reading the newspapers and the financial pages you will have an idea of how things are going. Keep reading those recommended magazines that I've listed for you and once I'm on my feet again I'll start giving you dear Diva's those recommendations.

My brother is coming by to pick me and my little diva darling, Princess up. We'll be spending the Easter Weekend at his house and I'll be back on par by the end of Next week.

Until anon, Kisses Darlings

The Economy and hardships~~a brief note~~~

Hello Darlings,

I know --- it has been a long time since I’ve last posted but, well darlings, with all the sudden changes in the stock market, the economy worsening, President Obama’s stimulus package, the foolishness being done at our State Capital (God Bless you, Maldonado), I just could not fathom what was going to happen.

My “Business Ladies Who Lunch” and I have been having meetings every Sunday just pouring over what is happening, two of the dear ladies have been downsized and are now seeking new employment.

My father once said that “We are not in a depression unless it has gone for 36 months, if it has gone that long and there is No sign of improvement, then we are in a depression.” But I fear that my Father’s assessment time frame may have been a bit too long, with employment in California at 10% and possibly going higher, the threats of furloughing workers and thereby shrinking their pay check will not stimulate the economy. And this has happened very rapidly, almost at the time the housing market had burst.

My ladies and I agree that the worst culprits are the CEO of major corporations, and banking institutions for unsecured loans, outsourcing jobs to other countries, taking huge payoffs, bonuses and separation packages and well as ridiculous spending has placed the economy in dire straits.

Then to discover that some of the higher positioned California State Staffers have used tax payer money to travel to things like a Justin Timberlake concert is completely reckless and reprehensible, I and my Ladies have written and sent a group letter demanding that the Governor force those who have done that illegitimate spending to completely repay the monies that they’ve illegally spent. To put it simply we are furious!

The best way to start improving this situation is to bring back the jobs that have been outsourced overseas, to encourage manufacturing in the United States, to inform the Unions that they cannot demand higher wages but can encourage safety procedures and legal conduits if there are improper situations, to demand higher wages would imperil the businesses, that banks work with homeowners to renegotiate all loans are a much lower and properly affordable interest rates. And banks should be the ones to encourage people to buy

Of course it would be best for people to spend less and more wisely, and to cease being a throw away society. Being “green” is fine, recycling is fine, being thrifty is fine, but not at the cost of businesses, and jobs. Also make our goods absolutely highly desirable by foreign countries so that we are selling much of our goods overseas, but keeping them very affordable here.

The March issue of U.S. news and world report has several articles that are worth reading and Mort Zuckerman’s editorial is well worth reading---his comment that “it’s a chicken and egg problem: the banks aren’t lending because of the weakening economy, and the economy is weakening because the banks aren’t lending” is really part of the crux of the problem.

And the only one who can break this cycle is really the banks, they need to lend to start the healing process but they need to do it at low interest rates to make the loans affordable and worthwhile. People are really seeing what they can and cannot do but they have to remember that they can’t spend like they use to, but only the banks can start the healing process and the CEO’s need to see that, forget what the stock holders want, get the healing started.

I for one have always thought that the way the stock markets were climbing was another bubble that would burst, so instead of buying the stocks when the rates were climbing to exorbitant rates I instead took the money and put it into high earning bank accounts, now the earnings have dropped but I have not lost my cash, it’s still there, maybe earning much less but there and I’m still have enough to cover all my expenses.

So I’ll be spending less, so what darlings, so what. I can still live.

Now my two ladies who lunch, one has moved back with her parents and has put her condo on the market, now she bought it a long time ago, so even what she gets now will still be more than what she paid for it. And she saw that her aging parents did need her, so she is looking for a job that is part time to cover her medical and dental costs and insurances, she did pay off her credit cards and is avoiding using them, she has also done other cost cutting measures so she is doing well.

My other lady who lunches has also done serious cost cutting measures, manage to sell off some property and used that to pay off the balance on that property and her credit card debt, she currently has COBRA on her medical, her working daughter has moved in with her and gave up her apartment, it was good really as her mother’s house is much closer to her work, and her mother’s house loan is fixed and affordable. My lady is also looking at various jobs and other options, and is being very creative. She has 5 interviews lined up and granted it will by at only ½ to 2/3 what she was making originally, but that is not an issue for her and any of the jobs are really a good fit.

It really being able to pay the bills and buying groceries and with the two of them living together it is really more viable by pooling their incomes together. As a matter of fact many families are doing that now and it is paying off for them as well as being supportive. In many ways we are returning to the solid roots of our grandparents of the early 1900's to 1930's, where every penny counted.

Really a attitude that should be regenerated into our young people all over again. All those old addiges "Waste not, want not", "a penny saved is a penny earned" and many more which our young people have totally disregarded which they are finding out to their own sorrow. "WAKE UP PEOPLE---THIS IS REALITY HITTING YOU ON THE HEAD".

So we shall see If our young people learn from this or will they go back to their "bad habits".

For now I’m going to the White Elephant sale today with my family and Juanita, who knows what items I will find, but it pays to be choosy Darlings and remember, it’s a tax write off.

Until anon, kisses Darlings.

Part One of our "Business Ladies who Lunch" Pot Luck Review

Hello Again Darlings,

Well I did promise you on how my “Business Ladies Who Lunch” Potluck went, we had a marvelous time and so much information to share that what we all did is use our digital recorders to record what was said that way we wouldn’t have to rely on memory.

But my Darlings there was so much information that I’m going to have to break it down into much smaller sections.

So this “chapter” is going to be on reading material, and at home entertainment~~~

One of our Ladies Sherry showed us several magazines that she purchased---because there were so many articles in them it was better to purchase them, she said next time she’ll photo copy the any articles if her Library carries those particular magazines, but this time she wasn’t sure.

The magazines were Kiplinger’s Personal Finance for January 2009 issue; it had many articles on building up your portfolio, finding best deals in bonds and warning of scams.

She also came across a November 2008 copy of the same magazine with articles on getting out of debt and saving on your energy bills and made copies for us.

Laura showed us the January 2009 issue of House Beautiful and it contained an article titled “A Clean Slate---It Starts With Your Closet” it had rules about weeding your wardrobe, and she gave us copies of the article.

On thing that we all agreed on was that it was important to save as much money as possible, and buying the magazines at costs ranging from 3.99 to 6.99 was defeatist, but Sherry said that by going to places such as Borders or Barnes and Nobel, she would look at the magazines, make a note of which ones had articles that were of interest and then go to the Library and photocopy the articles there.

If it was impossible to get the magazine at the Library only then would she consider buying it.

Speaking of buying magazines, Laura our Fashionista says that she limits her fashion magazine purchases to only the March and September issues of her favorites, and she watches for offers of when the subscriptions are 2/3’s lower than the shelf prices. For instance she has subscribed to Vanity Fair at a price that is only $1.25 per issue; she likes that magazine because of both the articles and the fashions they show.

She takes one evening a week after leaving work to go to the Library and scan Vogue and Harper’s Bazaar, and any other fashion magazine that is available, she likes to decompress that way. Any magazine that she does buy she removes only those articles that she wants and then drops them off at the magazine exchange box at the Library.

It was mentioned by all the Ladies that it appears that many Libraries and their Branches have a magazine exchange box, and for everyone to see if their nearest Library had one, we decided to also bring our magazines that we were done with to our next Pot Luck Meeting and if anyone wanted to take one home they could, but if everyone wanted the same article then the owner of the magazine would photo copy it and we would reimburse them for the cost of the photocopy.

It was also mentioned that if the particular issues are no longer on sale at either the bookstores like Borders or Barnes and Nobel, check your Public Library to see if they have those magazines or can request them for you from another Library System.

It was also discovered that checking the Magazine Exchange Bin was a good way to find back issues of magazines that we might be interested in. As my dear friend “Mean Kitty” would say “Free is always good.”

Now on to Entertainment~~~~~

We all agreed that going out for an evening of fun can become expensive and even having home entertainment can be expensive if you have children that want the latest video game, especially the Wii system.

Terri is a working mother, her husband also works but his job often takes him out of town, so she has two children ages 8 and 10 who demand being entertained. Because of the economy crunch, she had them watching the early evening news, and she would watch it with them, when it brought up the economy and people being out of work or losing their homes, she would then bring the subject up to her children.

She said that she really didn’t want to do the “Scared Straight” routine, but she had to make her children very aware that there were priorities in life and that buying the latest video game or the latest DVD was not high on the list. Through carefully telling them what the situation was she got them into the game of finding inexpensive ways to be entertained.

Card and board games came up, but they found that it only worked if there were at least 4 children involved so Terri came up with a exchange of play nights for children on Fridays and Saturday evenings if there was no big homework assignment, and games in which two people could play, such as checkers, puzzles, pick up sticks, tic-tac-toe, they found a children’s toy consignment store, and there they discovered board games that were much cheaper than new. They even discovered the game of Jacks and Marbles, she said that the children were working together better, less hyper-active and they tired more at night when ready to go to bed.

She also introduced a reading time as well, at least 15 minutes to read a portion of a book that was borrowed from the Library. And that was after dinner, and then to any game.

But homework always came first with the idea of games afterwards. She noticed an improvement on their homework as well, so she believes that the games engage their brain functions much better.

Sometimes a movie is always good, but our Ladies didn’t want to have to buy or rent the latest films, Net flicks was discussed, the fact that it could be mailed to and from the Net flicks center for a monthly fee of $8.99 was considered an excellent bargain, the ladies did have some disappointments, like a film not playing well and it was not their DVD, but it was considered the chances one has to take.

If one is into films then it was considered that Net Flicks is a good deal, going to the movies was another thing discussed and it was agreed that for some films seeing it on the big screen is visually more exciting, but going in the evenings can put a hole in the pocket, if it’s a film that one Must See then going to a matinee is always good, but do not buy any of the popcorn or soft drinks to save money.

The Public Library was brought up as a free option to borrow films and music CD’s and was considered the best rock bottom solution for music and Films.

One of the Ladies says that she and her boy friend plan one movie night out a month and this would include eating out as well, it’s their treat to themselves and they include it in their budget, but she says that they stay with appetizers, and only ONE alcoholic drink, they buy one big tub of popcorn, but they sneak in her oversize purse their bottled water.

I told them about my “Game Night” parties, which would include Mahjong and other games, and puzzles and doing it pot luck style, and it could be done with any size group.

Other things that were discussed was finding free things to do around the Bay Area, most museums have free sections one can go to, but if it’s a special exhibit in which there is a fee, one should be prepared for that.

Public Parks and Art Wine festivals with free entertainment was considered, free beaches was also thought of for the summer months, mention was made of some of the local events such as the Sand castle contest, and the Jam festival.

It was looked into the cost of parking and gas use and if it was possible to take public transportation to most events to save money, it was agreed that a number of events was easy to get to using public transportation and some not so easy, again planning and budgeting was considered the best way to make decisions.

Sometime during the Summer if a store is offering a special admission price to one of the local amusement parks that could be factored into one’s budge.

Terri told her children that if they collect cans and bottles for recycling the money from that could be used to go to a major amusement park one time during the Summer, but they had to decide which one it would be, and they created a Amusement Park Jar, which is a big glass jar and all the money that was raised by cashing in the cans etc was put into that jar, the children started including found money, that is money found on the sidewalks, etc. Terri says they do not turn their noses up at pennies anymore, and if they have any toys that are in good condition but they are no longer interested in they take it to the Toy consignment store for either credit or cash.

She also makes sure that the children wear gloves when they go on their hunts, she said it’s amazing the number of cans and plastic bottles that people carelessly toss out, she discovered teenagers are the worst offenders.

And Teenagers almost led us off into another tangent but we did get back on track.

Well Darlings this has gone to 4 pages, so I’ll have to end for now and continue at another time, my Dear Friends Betty and Bill are coming by in Bills’ Packard and we are going “Cruising”, and checking out some things, they are into Art Deco things, so I’m going with them just for fun. Besides you never know what might turn up or discover.

Until Anon Darlings, Kisses

Gold Standard, economic studies

Hello Darlings,

First I have to say that I thoroughly enjoyed Quantum of Solace, it’s different in its own way, and obviously they are re-inventing the Bond Universe, but for just plain fun, and lots of popcorn (back to the gym for me) I do recommend it.

Afterwards, Kenneth updated me on what is going on in his life, it seems that with working with a certain company he is being forced to have to travel more to make sure that all parts of it are running in the same direction and it does look like they may have to do cut backs, Kenneth is recommending to hold off on the cut backs until after the Holidays, and see what they can gain through attrition (retirement) which can mean less layoffs than expected and he’s looking at last hired first to let go, unless it’s a specialization. He has a lot of headaches on this, but his feeling is that we won’t see the beginning of a turn around until this time next year. He’s planning to ride this out, make sure that as much as possible is in place with his company and then look at retirement, his finances are in good shape, but he’s thinking of freelancing, there seems to be a demand for that and he says he doesn’t have to remain in one place for a long time.

I’m inclined to agree with him. The news in Barron’s is mixed, the stock market doesn’t know where to go, and I do hope that Mr. Obama will put serious regulations on profit taking.

I am so glad that my head has finally stopped whirling around and around from all the election “hype”, now a President elect is in place. I sincerely hope he does the right thing, especially with the economy.

There is an opinion article in the (Nov. 17, 2008) Christian Science Monitor; the author postulates that it would be good for our economy for the United States to go back to the Gold Standard.

Personally Dahlings I feel that in the long term it would be a very wise move, one needs to look at the various economies of different nations over the last 100 years and see that when they went off the Gold Standard, it was rampant recession and inflation, with goods not being priced at their true value, if we were on the gold standard we would have a true value of what our goods are worth.

But there are some caveats to all of this:

There are over 100 countries that mine gold and sell it on the market.

The five biggest producers are
China
South Africa
United States
Australia
Russia

As you can see only the United States and Australia are the least volatile in gold production or mining.

China out stripped South Africa because labor is cheap there, for they, like some other countries hold life as being cheap.

Here in the United States the primary gold producing countries are Nevada, Alaska, Colorado and California. And we are the second largest holder of gold in the world, yes Dahlings, there is gold in Fort Knox. Approximately about $134 Billion dollars worth as of the gold value in April 2008.

But here is the crux of the problem how does one mine the gold without it becoming an eco-environmental danger. Open pit mine is safest to the laborers but is an environmental disaster. Closed mining is far more dangerous. One can only find so much in placer mining.

And the cost of mining, so what is the best way to get that gold out of the ground? Considering all the up to date mining techniques I think I’d leave that to those qualified.

But I know some of you are asking is the Gold Standard really the way to go?

Lawrence White wrote a paper on that and even answered any objections in his paper that was published in the CATO newsletter of which I will print the summary here and if you go to the CATO website you will be able to read his paper in full.

His paper was presented on Feb. 8, 2008

SUMMARY~~~~~

Is the Gold Standard Still the Gold Standard among Monetary Systems? By Lawrence H. White

Lawrence H. White is the F. A. Hayek Professor of Economic History at the University of Missouri St. Louis and an adjunct scholar of the Cato Institute. He is the author of Competition and Currency, Free Banking in Britain, and The Theory of Monetary Institutions.

No. 100

Critics have raised a number of theoretical and historical objections to the gold standard. Some have called the gold standard a crazy idea.

The gold standard is not a flawless monetary system.

Neither is the fiat money alternative.

In light of historical evidence about the comparative magnitude of these flaws, however, the gold standard is a policy option that deserves serious consideration.

In a study covering many decades in a large sample of countries, Federal Reserve Bank economists found that money growth and inflation are higher under fiat standards than under gold and silver standards.

Nor is the gold standard a source of harmful deflation.

Alan Greenspan has testified before Congress that a central bank, properly functioning will endeavor to, in many cases, replicate what a gold standard would itself generate.

This study addresses the leading criticisms of the gold standard, relating to the costs of gold, the costs of transition, the dangers of speculation, and the need for a lender of last resort.

One criticism is found to have some merit. The United States would not enjoy the benefits of being on an international gold standard if it were the first and only country whose currency was linked to gold.

A gold standard does not guarantee perfect steadiness in the growth of the money supply, but historical comparison shows that it has provided more moderate and steadier money growth in practice than the present-day alternative, politically empowering a central banking committee to determine growth in the stock of fiat money. From the perspective of limiting money growth appropriately, the gold standard is far from a crazy idea.

So Dahlings, what does this all lead to? Simple, if the new president-elect is wise, he should push for the Gold Standard with all nations, and that they should switch to this standard on the same day so that no one country is left dangling as the first.

Of course those countries with a greater gold production will have a certain amount of financial power, and that should be regulated as well.

People are taught to save, if they are wise, and savings is important but the money that you are saving is fiat money, only alleging being back by the governments guarantee that it will buy you a certain amount, but if you look at the value of the dollar against the Euro it has devalued and buys less. Why is that?

Because people speculate; with the gold standard it will reduce that speculation and you will have a guarantee that your dollar is a dollar. Fiat money is only credit dollars and can be rendered worthless if safe guards are not in place.

But do save, to do those emergency repairs that come up, it’s not a bad thing, but remember prices, because of this inflation will go up, so be prepared for that.

And study economic principals to aid you in your Diva life style.

Now this Diva having gone to the gym yesterday and did her aerobic walking this morning, is going to freshen up and meet her friend Irma for a bit of lunch in the City and a bit of shopping, my brother Tom has said that it’s best if we exchange gift certificates for the Grandchildren (my great nieces and nephews) and they can select what they want, an excellent idea and fortunately their parents told me what is their children’s favorite stores.

Must go, my Diva Darlings.

Until Annon, Kisses Darlings.