February 2, 2008, 9:59 am

Financial Ramblings

by: The Financial Blogger    Category: Financial Rambling
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That’s my last weekend before I start my new job as a financial planner. I think this experience will be beneficial to both my personal finance and my blog. This will definitely encourage me to go further and deeper into the analysis of each financial strategy. In addition to that, I will learn more about the seven pillars of financial planning.


My wife went to her job interview last week and it went pretty well. However, it seems that people do not take the time to read carefully when you write an introduction letter. She mentioned that she was looking for part time and that she has two kids that would ultimately need to go to that daycare if she was to work there. They offered her a full time position with no place for our children. This was unfortunately a waste of time for both my wife and the employer.

Both the Fed and the Bank of Canada decided to drop their rate about two weeks ago. The Fed went on an ultimate tentative to avoid a recession by dropping the interest rate by 0,75% while the Bank of Canada simply decided to put their foot on the brake slowly with another decrease of 0,25%.

Will this be enough to the consumers back in the stores? I don’t think so. I believe the problem is far more complex than the interest rate they pay on their debts. In fact, it is starting with the personal finance management more than anything else. The problem is that the even the government is not able to show how to manage money properly… What a disaster!

Anyway, in the meantime, the prime rate in Canada is now down to 5,75%, which means that, for the very first time, I will pay more in principal than in interest on my mortgage payment. I guess that this time of the economic cycle is perfect for those who know how to take advantage of it. Instead of buying more and more, I’ll simply pay my debts faster and put money aside 😉

Carnival picks:

Carnival of Money Stories at Being Frugal.

The Chaotic Thirties at Moolanomy.

 

Carnival of Personal Finance at The Dividend Guy Blog.

A Hedge Fund Manager On Subprime: 3 Lessons in Investing at The Honest Dollar.

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Comments

I’m not sure if you noticed, but it wasn’t mentioned in the article. The Fed in the USA reduced their rate by a total of 1.25% in a 0.75% emergency move and then again by 0.5% on their scheduled move. Canada, we just dropped the 0.25% on schedule.

Looks like the USA is falling apart way worse that I originally thought.

by: The Financial Blogger | February 3rd, 2008 (8:12 am)

Traciatim : you are right, I forgot to mention the second drop. It looks like the bad times are coming for the USA….