Rescue Government

American has weathered more than a dozen recessions after the end of the Great Depression, but many financial analysts consider the tough economic times of 2008 and 2009 to be both historic and extraordinary. Although some will blame the lower lending standards pushed on financial institutions during Bill Clintons two terms, the fact is that the makings of the present crisis go back at least to FDR, if not all the way to the creation of the Federal Reserve Bank in 1913.Despite government interventions in the economy, or ever perhaps because of them, the commonly heard phrase even now is that things are likely to get worse before they get better. It really is not dependent on who the President is or what he does. Experts are predicting a serious contraction of the economy that could ease possibly by the beginning of 2010. However, these predictions are hr support for small businesses being made by many of the same people who were behind some of the bonehead moves of the last decades. What can you really do to protect your investments?Diversity plus understandingFirst of all, the age-old advice not to put all your eggs in one basket is still good today. Your portfolio should be diversified, and with deliberation and thought going into it, not just diversification for the heck of it. If you think you will make some easy money by flipping real estate or buying the popular, high-flying stocks, you have come up with that idea about a year or two too late. The familiar mix is still a good one some real estate, some savings, some bonds and some mutual funds (which are themselves invested in stocks, bonds and money market accounts). Now thats diversified.It is critical that you understand what you expect from your savings and investments.