I’m 15 and this whole situation with the stock market is everywhere, but I don’t feel effected. What’s gonna happen to people around my age? Will it be hard to pay for things like college?
JORGE
Comments
You’ll get laid off from high school and have to stay home playing video games. Heh, that would be cool.
Actually you’re in good shape. By the time you go out into the real world and look for a job, or even by the time you need a college loan, things will have recovered. In fact the harder we fall right now, the faster things are going to be growing then, most likely.
IT is going to be harder to obtain credit (it was too easy in the past). YOu will have to prove your credit worthiness save for a down payment on a mortgage loan.
i’m sure by the time you have to go to college this mess will be long sorted out, if these problems lead to a depression then it woudl have obvious effects on everyone
What’s going to happen is we are going to get out of college and have no job opportunities open to us and some serious debts from student loans if the economy stays like this.
It will affect you the same as us all. We will all be poorer because of debt and deficit spending of the government. The national debt is now over 10 trillion dollars. That amounts to over $33,000.00 per every man woman and child. So you were born in debt, because of the excesses of people who lived before you.
But find a way to get your education somehow, you will need it.
For you personally, you won’t be affected unless you have investments in the stock market or other types of investments. Your parents might be affected on the basis of job security (depending on their job) and compensation.
My advice for you is to take advantage of this situation. It can be done! Right now, many people are scared to invest in corporations because they fear that many will go bankrupt. This means that many great companies will be trading at a discount to their intrinsic value, and they’d make great investments.
For now, do what I do and read investing classics (One Up on Wall Street, Common Stocks and Uncommon Profits, The Intelligent Investor, The Motley Fool’s Investment Guide for Teens, etc.) Now is truly a great time to invest.
Finally, here’s some knowledge I’ve obtained from my readings that I can relate to this current economic condition.
At any one time in the world, at least one industry or sector is having a tough time. In this case, the banking sector is taking the hardest hit because of the sub-prime mortgage crisis and many investors withdrawing the majority of their investments. Right now, after you’ve done your reading of course, look at companies in the banking sector (Ex: Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo, etc) to see if any have strong businesses and are trading at a discount to their true value.
Have fun!
