Politics and what people do in Washington affects our stock market lately. With the current administration most are feeling skeptical about the future. When there is uncertainty in the air, people have the tendency to pull there money out of the market because of the volatility. Naturally banks start paying higher yields by putting your money in the bank with them. This is the nature of our economics. Time and Time again people have the tendency to repeat history.
With the FDIC insuring money in the bank for $250,000 per account holder until the end of December 2009, it only makes sense in some cases to put your money in bank. With the current election going on you can rest assure it will be rocky until after the election.
With any election there is always a skeptic in regards to which party is going to do to help out our country. With this current election and the historic events that are about to take place I can assure you that we will get through these turbulent times. There are lots of fail safe measures our government is implementing and probably will continue to do so.
If you are young this is a great time in our history to buy stocks at a low price. If you are retired and are on a fixed income you might consider a different strategy. In some instances annuities with a guaranteed rate of return might make sense. You should always check with a financial advisor before making any extreme decisions.
Also with the credit crunch identity thieves are on the hunt, so make sure you check your credit report often before its too late. If identity theft happens to you, your financial situation just became a nightmare.
