Is Anyone Worried About The Economy?

[TikiGeek]

I've weathered a number of economic storms so far in my life - Stock Market Oct. 1987 - California real estate of the early 1990's - Stock Market post 9/11 - but I'm really worried about what's going on right now.

If you take the comments of Alan Greenspan from this last weekend and combine them with what has happened this week - I truly believe that we are headed into another depression.

I'm considered by most to be an optimist but I think it's going to get really bad for a lot of people. I hope I'm wrong.

[Jim Dear and Darling]

I am highly stressed about this. Jim Dear and I have a lot of our savings in the stock market. And I worry about my family, and the housing market, and our jobs... My dad is a painter and has had quite a time getting work in the current market, his business was booming just a year ago.

[jMom]

I've been very worried for several years. There's not a whole lot I can do about it except keep the debts down and try and make responsible choices with my husband to protect our family.

I think it's going to get worse and stay there for a while.

I want the guys at the top who scammed lots of money in bad home loans (and those who encouraged it) to pay. With their lives, working for those they scammed. Washing their cars or driving them to their jobs, and paying for the gas. Doing the cooking on dwindling money supplies. Working that second or third job to keep the mortgage payments coming. Paying some utility bills. Sorry, that's a derail ...

[anniedg]

Originally Posted by jMom

I think it's going to get worse and stay there for a while.

I'm nervous this is true. With the AIG bailout it looks like the government is going to resort to printing more money so it looks like we have some significant inflation to look forward to.

[jMom]

The US Treasury is now auctioning bonds to raise money to try and carry us through this mess.

They are calling it the Supplemental Financing Program. Great.

[Cathy at the Park]

I am worried. I am 50 years old and my husband and I have taking care of ourselves since we married thirty plus years ago. I have seen flush years and dry years, but this is the one that has changed me.

I cannot ever imagine going back to the way things were just a few years ago, in our spending habits. Even when things right themselves.

It just seems foolish to ever again think that having polish on my fingernails would be more important than putting that $40. in the bank (or under our mattress ).

I hope this isn't going to be a full on depression, and I am not savvy enough to even really know what this is--stag-flation???

But it feels weird, different somehow from all the other down periods (anyone else remember lining up to buy gas at 2 am so you could get to work that week?).

Cathy

[jMom]

I remember even & odd days and having to plan when you could fill up your car

My dad grew up in Europe before & during WW II. He has some stories to tell

My mom tells me stories of going grocery shopping, buying the things week after week and inflation rising so quickly it totally blew out the concept of "budget." She said it was like trying to live with Monopoly money.

[Alex S.]

I work for WaMu. Yes, I'm paying attention.

[foolishmortal]

right there with you all on this one. Jmom I think a few of those people should have to come out here and chop some weeds! In 105 heat, and dust!~ok off derail~

DH and I have said for 15yrs that people were going to pay for their spending.
It was like they acted in the 90's and 2000-7 that nothing was every going to change or get bad.
That the real estate market was going to go up forever, that interest rates would always be low.

We are in the same boat with our retirement, but do have safe guards in place so it won't drop below the level we have put in. If it falls to that level
it will be transfered to a secure savings, with a small bank that has High assets so that the $$ are covered.

As a farmer,spend everything, that is not an attitude that DH and I have. WE KNEW that the market would eventually right it's self from the steep up ward climb it had been on for years. The economy always does.

I know that sounds like we can predict what the market will do(HA if only I'd be very rich!) We have seen it in our jobs, the weather is never prefect, crops are not going to produce huge amounts every years, and you have to live with your income with the mind set that it is going to be the worst case scenario every year. Its the only way to keep from over spending and going under.

Back in the twenty's they had large loans out and people after WW1 were spending beyond their means. and then the market righted it's self and too many were in dire straights.
I think It's a slow repeat of history.
Only this time we know what can happen and have a watchful eye out for it.

Ag in Ca is in a precarious potion with the Feds and water. Already we are not growing cotton next year. That's 305 acres of land out of production, to give you an idea that's ALL of Dl ,DCA , hotels, DTD twice over!. Which means no tax revenue for the state, less work for employees to do, income tax both state and Fed down.
And that is just us, not counting the 1000's of acres out of production All over the state of CA next year.
That equals higher food prices at the store, less to go around, over seas too.
Ca is one of the largest Ag producers in the U.S. The central valley(Fresno co.) Is the #1 Ag producer in CA and the central valley is the largest producing Ag area in the world. So things are not looking good for the economy at all.

Ag is a stable tax base for the U.S. (even if people think they don't need U.S. Ag.) every piece of land out of production means a huge drop is tax revenue. not a good thing.
In CA the new budget proposed has the state "borrowing" really a tax , a 10% increase in state income tax, that has no date of return and no interest paid to the people of CA.
SO the more money you take to fund failing programs from EVERYONE paying taxes means less for them to spend in the open market , Equals less revenue generated, less tax's to the state and more loss.
The more money you take from an area the less it is available to invest and promote good economic growth.

It's all a connected link. No one is immune from this, Unless you live in a vacuum where nothing in the outside world has anything to do with you then you should be very worried about the US economy.

I know that like the rest of you I am worried and have been for a long time.
the best any of us can do, is be carefully of our spending, watch the markets, not panic, prepare for the worst but think the best.
Then things will start to level out and resume it's "normal growth".

If we can come out of 9/11 strong as a country we can surely deal with this.
Our parents and grand parents made it through the 30's and we had no safe guards or people paying attention back then. SO I think that we will all make it through this.
It's just been a really long time that scene we have had to watch our P' and Q's and we have forgotten what it was like.

remember what goes up must come down and vise versa!

(sorry for the very long post) Just so glad to get all this worry off the brain!!
and know it's just not me worried out there!
I'm a major worry wort!

Thanks for starting this thread! Gets to worry off!

[foolishmortal]

Originally Posted by Alex S.

I work for WaMu. Yes, I'm paying attention.

Thank you Alex!!!! Glad someone is out there paying attention!!!!

[cstephens]

I'm mad that people who bought houses they couldn't afford and spent money so they couldn't afford their houses are now not able to pay for them and need bailing out, and that is now having a domino effect that has the potential to impact me, when I've been living completely within my means.

[Ohthatjeff]

I'm perhaps more worried about the Treasury Department owning an 80% share in a major insurance corporation. The current administration hasn't exactly shown the greatest fiscal sense with the budget and I'm afraid the next administration is going to have to take a bath on this deal if they decide to sell it off.

As far as the banking industry is concerned, I'm not so worried. We survived the banking crisis of the early 90's with a stronger banking industry and we'll survive this one. It won't be without its victims, so here's praying for ya, Alex. Hopefully, the (non-governmental) rumors are true and you'll have new bosses soon and hopefully they'll keep you on. *fingers crossed*

There are a lot of failed business models out there that need weeding out or correcting (mortage, automotive, airline industries) that are going to drag everything else down for a while. It's going to inconvenience a lot of people, but we're going to have a address them. Hopefully, not all at the same time.

[Alex S.]

No need for prayers or crossed fingers. The worst thing that happens (for me) is I lose my job. And if that is the worst thing that ever happens to me it'll suck but have been a fine life indeed.

It is just interesting to watch all of this from on the inside of one of the companies.

[shna]

Originally Posted by cstephens

I'm mad that people who bought houses they couldn't afford and spent money so they couldn't afford their houses are now not able to pay for them and need bailing out, and that is now having a domino effect that has the potential to impact me, when I've been living completely within my means.

There are definitely those who borrowed/spent unwisely. There are also those who were doing fine with their mortgages before they lost their jobs to outsourcing or downsizing or before they had a severe health problem that insurance couldn't/wouldn't cover. All part of the big mess we're in now...

[Malcon10t]

Originally Posted by foolishmortal

Ag in Ca is in a precarious potion with the Feds and water. Already we are not growing cotton next year. That's 305 acres of land out of production, to give you an idea that's ALL of Dl ,DCA , hotels, DTD twice over!. Which means no tax revenue for the state, less work for employees to do, income tax both state and Fed down.
And that is just us, not counting the 1000's of acres out of production All over the state of CA next year.
That equals higher food prices at the store, less to go around, over seas too.
Ca is one of the largest Ag producers in the U.S. The central valley(Fresno co.) Is the #1 Ag producer in CA and the central valley is the largest producing Ag area in the world. So things are not looking good for the economy at all.

I really don't think people realize how precarious this really is. Its not just you taking land out of production. Its happening all over. And not just in the lower Central Valley. The water issues, coupled with the economy is going to end up with a big mess over all.

[Jewels]

Originally Posted by cstephens

I'm mad that people who bought houses they couldn't afford and spent money so they couldn't afford their houses are now not able to pay for them and need bailing out, and that is now having a domino effect that has the potential to impact me, when I've been living completely within my means.

Though I do feel sorry for anyone who lost their house due to being laid off or illness most of what I see around here is people who bought above their means. Or took tons of equity out of the house as the prices soared and are now sorry since the house prices have plunged. I have so many foreclosures around us it is just sad. People just walk away like they don't care. And boy has it done a number on the value of my home.

I know bad loans were out there. And I am sorry it has caused so much heartache for some. Though I also think that both the people who made the loan and those who took it are equally responsible.

[turkeymama]

Originally Posted by Alex S.

I work for WaMu. Yes, I'm paying attention.

DH doesn't work for WaMu, but another mortgage company. We are extremely worried, especially since I am in school right now and not working.

He is looking for other jobs, but most of the financial world is experiencing the same trickle down effect.

[cstephens]

Originally Posted by shna

There are also those who were doing fine with their mortgages before they lost their jobs to outsourcing or downsizing or before they had a severe health problem that insurance couldn't/wouldn't cover.

I'm not mad at them in theory. If they were doing fine with their mortgages but spent every other cent on frivolous things so that they had nothing in savings and never thought to save for the future or emergencies when they had the money to save, then yes, I'm still mad at them. The other ones - I am severely ticked off at.

Maybe it's because I was taught to think about the future. Ever since I had a job, I never spent every cent I had if I didn't have to. After bills, a portion went to savings and a portion went to luxury items. The only time I ever carried a credit card balance was when I first graduated from college, before I got my first job. Once that was paid off, I used credit cards mostly as a cash advance - paid off at the end of every month. Paying the mortgage and the bills always comes first - not non-necessities.

[WDW heart]

I'm very worried about retirement and college savings accounts. We are counting on those and I"m beginning to see that we better get a back up plan. Energy costs are killing us. We are probably spending at least $1000 more on gas, oil and electricity a month. It cost me $768.00 to fill up my oil tank.

[foolishmortal]

Originally Posted by Malcon10t

I really don't think people realize how precarious this really is. Its not just you taking land out of production. Its happening all over. And not just in the lower Central Valley. The water issues, coupled with the economy is going to end up with a big mess over all.

I know what you mean ,it's all Ag that is walking that fine line right now. I don't think most people realize that it will only take a lower production year, plus maybe one really bad growing year to put us in a very tight food supply.
Like we saw overseas. China is over here contracting a lot of domestic production for export.. so we'll have to see how that will play out over the next 10yrs.
and taking out land for fuel production is so not wise. I know we won't grow any grain soon. If at the worst maybe a winter wheat to fill in the gap, that requires little well pumping.
Almonds were decent this year, but we are not in full production yet, trees are still young.

The Ag issues are sometimes over looked when it comes to the econ. but it has a very real and important impact on the U.S. based incomes.
There are a lot of jobs, and taxes riding on how well we do.
Everyone from field hands, truckers, brokers, stores, restruants, clothing, canning and manufacturing comp.'s( those who supply cans, bottles,labels, processing, equipment, etc) realy on us at the bottom to do well.
So it has a far reaching effect on just about everyone.

Well here's hoping that next year we'll see things a little better.*knocks on wood*

Kat

[ellisfamily]

I'm not so worried, yet. So far the only real crunch that I have seen is that my landlord is going into foreclosure, and yes that sucks for me, but at least it's not my credit getting jacked up.

My parents have just been putting so much pressure on us to buy a house right now, but I am just scared to get into a mortgage with no "guaranty" the future will be brighter for the overall good.

I am in the insurance field, and yes, people aren't investing as much in financial products as they should (cause they can't even think about the long term right now) the general need for car/home/renters ins is still there.

I think the only people who are 100% are in the medical field!

[Bytebear]

I would love my landlord to go into forecolsure. Talk to them and their bank and I bet you could get a really good deal on the property.

[foolishmortal]

Originally Posted by WDW heart

I'm very worried about retirement and college savings accounts. We are counting on those and I"m beginning to see that we better get a back up plan. Energy costs are killing us. We are probably spending at least $1000 more on gas, oil and electricity a month. It cost me $768.00 to fill up my oil tank.

OMG! that is bad!

[Cathy at the Park]

Originally Posted by Bytebear

I would love my landlord to go into forecolsure. Talk to them and their bank and I bet you could get a really good deal on the property.

Now I realize I am not YOUR landlord, but when I read this, it makes my blood run cold.

My entire income is based on people paying me rent. And now a lot of my tenants have stopped paying. Some of them have lost their jobs, but several of them are hoping that by stopping to pay it will force me to sell the property at a greatly reduced price to them.

And I hasten to add that I am not one of those "buy with no money down' folks. I put a lot of money into each property, as much as 50%, to keep the payments low, in case of a month or two between tenants. So, when I get foreclosed on the bank will get all my savings.


It is getting ugly out there.

Cathy

[mzloolue]

Yeah I'm worried.

It seems like there are multiple financial problems that seem to be happening at the same time.