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Standing Together In Confidence to Strengthen Our Economy.
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STATISTICS
HERE ARE SOME INTERESTING STATISTICS THAT ARE EYE OPENING. THE FORECLOSURES THAT WE HAVE ALL BEEN SO WORRIED ABOUT, THOUGH SERIOUS, MAY NOT BE SUCH A BIG ISSUE IN YOUR CITY AND STATE. CERTAINLY NOT ENOUGH TO CREATE A PANIC. LET'S GET SOME PERSPECTIVE!
Foreclosures:
- 50% of United States foreclosures in 2008 came from 35 counties in 12 states. (USA Today)
- 20% of the United States’ population lives in these 35 counties. (USA Today)
- Eight counties in Arizona, California, Florida and Nevada were the source of 25% of foreclosures. (USA Today)
- Existing home sales rose to a seasonally adjusted annual rate of 4.7 million units in February, 2009, and only 860,000 homes were repossessed all of 2008. (AP)
THE STOCKMARKET HAS ITS UPS AND DOWNS--IS DOWN RIGHT NOW—BUT WILL COME BACK. LETS GIVE IT SOME TIME BEFORE WE GIVE UP ON IT.
NOW REALLY IS THE BEST TIME TO INVEST!
- Investors have made money 100% of the 15-year periods in the stock market’s history.
- Since 1974, the value of the S&P 500 has grown 1,250%, from 63 to 850. (MSN Money)
IS THIS REALLY THE WORST SINCE THE GREAT DEPRESSION??
The Great Depression and Recent Recessions:
- 1938–40: Unemployment grew to over 17%, the Stock Market dropped 89%, and bread lines were real; executives didn’t fly Gulfstreams to Washington, D.C. looking for bailouts. (Historical Statistics of the United States, Colonial Times to 1970. U.S. Bureau of the Census, 1975)
- 1974: The Stock Market dropped 50%, gas lines snaked around the block, and inflation became stagflation, i.e. inflation in a stagnant economy.
- 1982: Inflation was over 10%, unemployment was over 10%, and the interest rate reached 17% on home mortgages. (www.miseryindex.us; Freddie Mac)
- 2009: Unemployment is at 8.5%, there is no inflation, and the home mortgage rate is 4 3/8%. The Stock Market dropped 57%, but it has recently risen from a low of 6400 to over 8000. (U.S. Department of Labor; www.usinflationcalculator.com; Yahoo Finance)
Recovery from the Great Depression:
- Those who did nothing recovered in 4 years, 4 months. (Alliance Capital)
- Those who sold out at the bottom realized a 78% loss. (Alliance Capital)
Stock Market Performance Following Recessions:
- 1945–2007: The average bear market lasted 12.7 months with an average decline of 30.3%. (MSN Money)
Thank you to Dave Ramsey for his Town Hall Meeting which gave us the idea for this website! If you would like to visit Dave's website go to www.daveramsey.com.