How Bad Is It???

[BigFish]

One of the other guys on here mentioned to me on the phone that he thinks its not as bad out there as folks are making it out to be?? (Which makes sense if all is good at home). I replied it is just as bad if not worse?? So I am curious.....how bad is it at your house?? Are you all working?? Are things tight?? Have you had to cut out alot of things to save money??? My feeling is its gonna get alot worse....before it gets any better!

[BigFish]

Things are tight here! I am thankfully starting a new job working in the lumber dept. at Lowes the end of the month! That will help....plugs don't pay the bills here thats for sure! My wife has a great job and we are thankful for that! To help with the holidays she has taken a seasonal part time job at Crate and Barrel! (She loves that store) A mortgage, 2 car payments, my child support and all the other expenses......man its tight! We have cut cable somewhat! At the supermarket the other day I found a great way to save some money! They were selling cake/brownie mix for $1.00 each.....so I bought a bunch! Figure why buy all the pre-made crap that costs an arm and a leg when for $1.00, a couple eggs, some water and veg oil we can bake a cake that will last a few days or a bunch of brownies!!! Figure out how much a package of Chips Ahoy, Oreos, or Entenmans cake costs for a week???? Its silly when you think about it! Remember your Mom would always be baking when you were a kid?? Anyway.....its a killer out there so any way we can save a buck we are!

[luds]

I think it depends on who you are. If I was 65 and relying on investmment return in the market I would say that it is pretty bad.

[justplugit]

Our family is only buying gifts this Christmas for the children.

My fear is the credit card defaults next, as more people lose their jobs.

[FishermanTim]

As Luds stated, if you are living off of your retirement savings, you are the ones most affected.
I remember a radio money show host saying that when you are young, you want to be investing for "growth", and when you are nearing retirement, you want your investments leaning towards "returns"
Growth = stock price goes up (or down, as it may be) so that your "shares" are worth more.
"Return" = your shares don't fluctuate much (or at all in mutual funds) so you are looking at dividends and cap gains.

everyone receiving a distribution from their retirement plan is getting whacked because they HAVE to take the money or pay a penalty.

I am not hurting right now, but fortunately I live at home with an elderly parent, and the house is paid off. We are not hurting, and are in the process of finishing the basement. It's amazing what a little insulation does to warm up a room.
What I believe will happen will be like Bigfish was saying.
More people will "make it at home" instead of just paying out of pocket. I prefer any "homemade" creation because it shows that the creator cared enough about the quality of the goods (as well as their skills) and it saves $$ in the long run.

[BigFish]

Funny you mention that Dave! We got notification from Amex freezing our limit at $10,000.00 less than what we had approval for???? I am guessing they are either looking out for themselves....which is one theory.....or they were trying to screw us into a higher rate of interest because they froze it at $100.00 more than we owe them which means if we go over the limit our interest rate goes through the roof??? Think this was intentional??? I do!!!

[Crafty Angler]

Larry, be very wary of the CC people - believe me they are not your friends and they'll put ya in a financial death spiral quicker than you know. If ya can't pay cash, ya can't afford it.

Just duck and cover - it's gonna wash over us but it's gonna take longer than everyone expects and the worst is yet to come.

Sounds like you and the Mrs are doing all the right things - extra jobs, cutting back on non-essentials, hopefully watching personal expenses etc.

Hey did I mention -

GET RID OF THE CREDIT CARD DEBT ASAP



There isn't one single thing you can do that is more important to the financial future of you and your bride. Trust me, I'm an old fart and I've been there - if you can do that alone it's gonna make a big difference in what you'll be able to do once this crap is over...

Treat that AmEx card in your pocket like a rattler - don't touch it. If you can't pay cash, don't buy it. Period.

Sorry, Larr, and yeah, I am lecturing - but it's just tough love, brother

Good luck - you and your bride just keep doing the right thing - sounds like you guys are already on the right track

[BigFish]

Already working on it Chuck...thanks! Paying it off with all my brownie money!

[Love-da-Surf]

Originally Posted by justplugit

Our family is only buying gifts this Christmas for the children.

My fear is the credit card defaults next, as more people lose their jobs.

same here. my entire family had a talk and everyone agreed- no presents for the adults just grandchildren. my aunts and uncles arent wealthy, but they certainly arent poor. things are tight and only going to get worse. how much worse is the question.

[Slingah]

I am sure here at my house we will weather the storm. We are frugal people and do not carry much debt. As far as my buisness, thing are not as busy as I'd like, but I have managed to squirrel away more nuts than previous winters. If things do get worse...then we will do what it takes to survive...I try not to listen to the media and work on looking at the glass as being half full...

[RIROCKHOUND]

You don't look starving though

I have to give credit to my wife; while I call her a money Nazi, her frugalness pays off... we live cheap most of the time, carry no credit card debt we do not pay off at the end of the month (Gas card w/ rebates is most of that expense)

Of course working 1/2 time in academia and going to grad school half time makes me semi-recession proof; although if you didn't make much money before the recession, you don't feel that much different!

[ProfessorM]

Pretty steady here. Thank god for a workaholic wife. I am very frugal,cheap, as she would say but you need at least one of those in your household to keep on course. Luckily no credit card debt here. Like my mom always said there is always someone worse off than you so count your blessings.

[FishermanTim]

Keep this in mind:
Credit card companies are ALLOWED to use ANY OTHER bill you pay late as a reason to up your interest rate. So if you are late on your electric, phone, car or insurance payment they equate that as to being late on your credit card payment regardless of whether you have ever had a late card payment or not!
With the de-regulation of the credit industry we are pretty much screwed. If the credit card industry ever jumps on the "government bail-out bus", I would tell them to go pound sand!

[BigFish]

How do credit cards and utility bills/car payments have anything to do with one another??

[FishermanTim]

Originally Posted by BigFish

How do credit cards and utility bills/car payments have anything to do with one another??

I any world EXCEPT the credit world, they don't, but the credit card industry created this rule that allows them to use ANY OTHER bill that is paid late as reason to jack up interest rates.
Their theory is that if you're late on a car payment, or gas bill, or phone bill then you'll be late on a credit card bill.

I believe it's something like "mutually assumed risk", so that there is the "likelihood" that you "might" be late on a credit card bill "at some point" and that (to them) means the same as "you are NOW late"!

It's assinine, but when they were de-regulated it basically gave them "carte blanche" to do whatever they wanted to us.

[BigFish]

With all due respect I do not think that is the case. Can anyone else back that up??

[Raven]

one day at a time

[Duke41]

I am sorry to read about the issues everyone is having. I hope that we all walk away having learned a few lessons. First do not trust the government at any level to have the best interests of everyday Americans. All of them are in politics for financial gain and personal interests. Stay on top of what is happening at the national, state and local levels. Hold the politicians accountable and for God's sake vote, vote in every election. Second credit cards are evil. Make sure your kids know that, make sure you know that. They are the modern equalivant of the shylock or the loan shark. Stay away from easy credit at all levels. If you can't afford without the credit card, then you can't afford it period. Third, save some money. Open up a savings account and put a little in every week. You would be surprised how fast $200 a month can equal $20,000 in the bank. Fourth do not buy a bigger house than you can swing. Don't forget bigger house, bigger mortgage, higher taxes, higher upkeep, higher electric bill, higher heating bill. Fifth as Clammer use to say appreciate what you have. Are you healthy, is your wife, your kids. Yes, than you are doing fine. We will survive this downturn and come out of it a lot wiser, maybe more responsible with our money and community. Maybe the kids will learn something too. So let’s stay on the politicians at all levels, save our money, pay our credit cards off and never let this happen again. This is the greatest country in the world and we will bounce back, we always do. Let’s vow never to let the greedy bastards do this to us again.

[justplugit]

Originally Posted by Duke41

I am sorry to read about the issues everyone is having. I hope that we all walk away having learned a few lessons. First do not trust the government at any level to have the best interests of everyday Americans. All of them are in politics for financial gain and personal interests. Stay on top of what is happening at the national, state and local levels. Hold the politicians accountable and for God's sake vote, vote in every election. Second credit cards are evil. Make sure your kids know that, make sure you know that. They are the modern equalivant of the shylock or the loan shark. Stay away from easy credit at all levels. If you can't afford without the credit card, then you can't afford it period. Third, save some money. Open up a savings account and put a little in every week. You would be surprised how fast $200 a month can equal $20,000 in the bank. Fourth do not buy a bigger house than you can swing. Don't forget bigger house, bigger mortgage, higher taxes, higher upkeep, higher electric bill, higher heating bill. Fifth as Clammer use to say appreciate what you have. Are you healthy, is your wife, your kids. Yes, than you are doing fine. We will survive this downturn and come out of it a lot wiser, maybe more responsible with our money and community. Maybe the kids will learn something too. So let’s stay on the politicians at all levels, save our money, pay our credit cards off and never let this happen again. This is the greatest country in the world and we will bounce back, we always do. Let’s vow never to let the greedy bastards do this to us again.

Problem is, this is the way people should have been living over the past 20 years.

[RIJIMMY]

my take
think things are bad? you aint seen nothing yet. SAve every dime you can, prepare for months out of work. Sure I sound like a nutso, but as part of my job, I get to hear really, really smart people talk about the economic prospects and I have not heard one single speck of good news. And thats over the next 2 years. Housing prices still need to go down at least another 15%, think of the impact that will have on foreclosures, unemplyment is growing at a monumental rate.
I am suprised at how many people I still see shopping or at restaurants. Thats going to end quickly. The holiday sales will be abysmal, the stock market is going to go even lower.
Can you imagine if there is an international incedent in the middle of all this?
Please, take my advice - BE PREPARED. This may be the great depression you tell your grandkids about some day, no kidding

[rwilhelm]

I think it is pretty bad out there and I don't see it getting better anytime soon. We have too many problems right now. Housing crisis, banking crisis, auto crisis, rising employment rates. Where I work we are going to be about 600,000 short of budgeted sales for Nov and Dec bookings are way down also. Yes I am scared about the future!

[spence]

Originally Posted by RIJIMMY

my take
think things are bad? you aint seen nothing yet. SAve every dime you can, prepare for months out of work. Sure I sound like a nutso, but as part of my job, I get to hear really, really smart people talk about the economic prospects and I have not heard one single speck of good news. And thats over the next 2 years. Housing prices still need to go down at least another 15%, think of the impact that will have on foreclosures, unemplyment is growing at a monumental rate.
I am suprised at how many people I still see shopping or at restaurants. Thats going to end quickly. The holiday sales will be abysmal, the stock market is going to go even lower.
Can you imagine if there is an international incedent in the middle of all this?
Please, take my advice - BE PREPARED. This may be the great depression you tell your grandkids about some day, no kidding

That's a lot of doom and gloom. I think things will still get much worse but this isn't going to be the Great Depression II.

Besides, if we all stop shopping that will make things worse!

Everybodies situation is different. People need to react as appropriate.

-spence

[Crafty Angler]

Originally Posted by RIJIMMY

my take
think things are bad? you aint seen nothing yet. SAve every dime you can, prepare for months out of work. Sure I sound like a nutso, but as part of my job, I get to hear really, really smart people talk about the economic prospects and I have not heard one single speck of good news. And thats over the next 2 years. Housing prices still need to go down at least another 15%, think of the impact that will have on foreclosures, unemplyment is growing at a monumental rate.
I am suprised at how many people I still see shopping or at restaurants. Thats going to end quickly. The holiday sales will be abysmal, the stock market is going to go even lower.
Can you imagine if there is an international incedent in the middle of all this?
Please, take my advice - BE PREPARED. This may be the great depression you tell your grandkids about some day, no kidding

Dude, I'm with you on this one -

If you do prepare yourself and it doesn't happen, then all you will have done is learn to live WITHIN your means and perhaps you'll also have a little stashed away.

If you don't prepare yourself, home and family for something that may happen down the road, you're not gonna be able to play catch-up on it once the mud has already hit the fan.

Kinda like the folks who refuse to evacuate and decide to stay on barrier islands during a hurricane to party it up. When you see 'em interviewed later, they seem somehow to have seen the light and swear they'll never do it again

Hey, it's up to you to decide - blow it off if you like. It's still a free country

[RIJIMMY]

Spence,

housing prices fell 18% and you had a 700 billion bailout. Those housing prices adjusted for inflation are STILL 15-18% above the norm. Can you imagine what will happen when it finally corrects, never mind hits bottom?
Consumers are 72% of the economy, with this growing unemployment and uncertaintly (and my gloomy posts) think of how massive a hit the retail and service sector will take.
What if we get a bad winter, how will towns afford to plow the roads? many local towns are struggling due to decrease in tax and permits.
The list can go on and on, I dont think I am being overly pessimistic.

[striperman36]

Jimmy,
Maybe we should just curl up and watch Mayberry RFD reruns on TVLAND

[RIJIMMY]

market plummets second day in a row.
I'll be out of a job soon.

The pullback for the second straight day Thursday sent the Standard & Poor's 500 index down 6.2 percent to 756.81, below the low of 768.63 seen on Oct. 10, 2002.

Man, if you had a lot of $ right now and can invest heavily, you'd be a rich man in 3-5 yrs.

[Nebe]

Your right Jim, but we are at such a pivotal time in history, I am sure there are a lot of people who are not sure where to put their money...

[spence]

Originally Posted by Nebe

Your right Jim, but we are at such a pivotal time in history, I am sure there are a lot of people who are not sure where to put their money...

According to Hannity and Limbaugh, it's Obama's fault that the rich are afraid to invest...they've already labeled this economic turmoil the "Obama Recession".

-spence

[BigFish]

News Flash! This downward spiral was well entrenched before Obama came along!

[Jenn]

orig. question.....is it that bad? yes I think so and I dont think it will get better anytime soon.

I personally got three months of reduced hours at work (all 200 of us) and the hubby may or may not have a job three months down the road....but no one will say for sure. He did make it through the layoff...but I say there will be more to come. Are things tight....yeah they are! we have eliminated one $400 monthly payment a few months back (ooh that will help! yeah RIGHT...) dont even notice it because of the higher prices at the store. AND we cut a LOT of frills on top of that. SO what gives?

Friends out of jobs, local businesses closing their doors, big businesses closing their doors. Less and less to go around for everyone. the list goes on but Yeah I would say it IS as bad as they say.......