Are things really THAT bad??

Is the economy THAT bad? In my household, I work and my husband works--at least he used to. He is a small business owner: land development. We live in the Fredericksburg area of Virginia and land development is DEAD. Not for the big guys like the Silver Companies which is huge in the 'burg, but for the little guys like my husband. He basically has land that he is letting sit until the market turns around. Until then, we live off my salary. I make a very nice salary and I work in the defense world so business is good. But I think that people are hurting--I think you have a sliding scale of hurt going on and I think it is important to be sensitive to that.

On the other hand, it seems like we are fixated. What's the market doing? What's the price of oil? Umemployment? Retirement plan values? The cost of living, etc, etc, etc. There are days when I would like to have a good news channel on the radio or the television. Fortunately, I have my golden retriever and life is always good through his eyes.
~Michelle
 
I think it's true that much of this is psychological & the media isn't helping. Cry doom & gloom, people stop spending & investing, everything tanks. Broadcast optomistic news, people feel more comfortable spending disposable income.

I don't think......at least I hope.....people don't consider those in trouble as "whiners." I'm pretty sure--& I'm far from a financial analyst so I could be wrong--much of this has to do w/mortages & home equity loans now being higher than the actual value of the home, since home values have dropped so much. It's very scary for those who bought a house when market values were high so now carry a mortgage that can be up to 25% more than what they could re-sell the house for.
 
doom and gloom

Hi,

I agree that things are bad, people are loosing their jobs and their houses. I also think that in many cases there is way more to the story than meets the eye. It would be interesting to see the loan documentation of many of the houses that are in foreclosure. Many of these people probably should never have been given loans in the first place. I know that doesn't account for the hard worker who has just lost their job and I do feel sorry for them, but I really don't think we ever get the entire picture.

Maybe if prices of fuel, and then food, and everything else hadn't gone sky high over the past year that people wouldn't be so strapped for funds right now. I can't help but think that the high fuel costs have been a huge factor in all of this, yet I think someone made lots of money on the high oil prices. I watched prices at Costco climb 25-30%.

I think the doom and gloom that the media continues to discuss is not helping things. I'm personally fed up with the biased media and don't listen to much of it anymore.

I also think that there is a natural purging of walk in businesses due to increased internet sales.

That being said, my husband has a small business and we are doing work for 30-40% less than we were last year. My husband can't understand why new cars and trucks haven't been discounted further in an effort to keep the automakers afloat. Isn't some money better than no money? That's a retorical question and I guess free money from the government is better and no money really isn't an option; yet.

Tracy
 
I think many of us haven't felt the brunt of the economic situation yet, though even some of us here have been laid off, or had some other more direct sign that yes, things are bad.

For most of us right now, the crunch we will feel--at least at first--may not the loss of a job or a home, but the cutting back on things that are not necessities. Let's face it, if we can afford to buy STS (even at the presale price), we are in a position (or have been) to buy 'luxuries' for ourselves. Some people are not, and it's those people who were just getting by who are having the toughest time right now.

Personally, I am pretty safe in my job (I'm a tenured full professor, and if there are any personnel cuts in faculty, they will come from non-tenured folks, but only after other cuts). I did just hear that another university is laying off about 1000 employees, some faculty included. A very scary thought.

Though one silver lining to this cloud may be what was mentioned above: we as a nation have gotten so used to abundance and having much more than what we need, perhaps this will be a way for some to realize that they can get by with less.
 
*sighs*

Sadly, it IS that bad for many people, me being one of them.

I have already been rid of my house and most of my furniture.
My pay was cut in half and I have plenty of the regular bills (in fact, Im still paying a gas bill from last winter from the house Im not living in anymore).

I dont have extravagant things, I never got the iPod I was hoping to get someday and Ive had the same cell phone for over three years.

I have an 18 y/o car that's paid for and, frankly, the only thing they can ever take from me lol-

Its funny though, I think about it all and then look at all the people driving fancy cars, people I know that have those fancy iPhones, the crowds at the mall and whatnot.. and I wonder where I went wrong.. I wonder if it IS really that bad or if I just happenend to do somehting stupid to get myself here..

Then I try getting business my way and see the lack of repsonse to marketing. I hear about poeple I know that are also losing their jobs. Sometimes I wonder why it hits some horribly and others, not so much..

Its a no-win situation in a way bacause to re-educate myself for another career or trade would cost money, money which I dont have and, in addition would not want to risk the time and money on education in a time where business is bad and it might not pay off anyways..

Hmm..

I have decided to spend more time trying to be positive.
Like attracts like.
If I spend a lot of time crying and thinking "poor me" (as I did for months) it only seems to bring more woe into my life. Messed my whole psyche up. Im hoping that with more positive thinking and meditating it will help me to create the energies I want around me, bring me business.. err.. if that makes any sense..

I wish all of you ladies the best, whom are also going through hard times-- you are not alone.
And for those of you that are not feeling it, I do envy you at least a little :)
But be grateful that you still have things in order. I don't know if I just missed something HUGE or if I just got sidewinded, but I don't think I could have seen this coming as badly as it did.

Ive heard it will likely get a little worse before it gets better, I think it has gotten about as bad for me as it can, so Ill just wait it out until things straighten out again :)
 
I am so sorry for those of you who are suffering at this time :(. My DH is self-employed, so we are always just a few months away from disaster! Fortunately, we always live like this, so now isn't much different than a few years ago. I really believe times like now, are the times you have to rely on family and friends to help. I hope those of you who are in trouble have some support group to help. If my family or friends were suffering and in need it would be an honor to help. But sometimes people don't tell others of that need until it is too late!!!!
 
From all the media proclaiming we are in a "recession" or depression, I think people across the country are believing it and are acting upon it. I got into a "discussion" with my CEO, I refuse to live in fear. If I lose my job because of the economy or if I lose it to my own accord, I believe if one door closes GOD will open another for me. I'm in school now for Healthcare Administration and all the facilities have a hiring freeze. I have read numerous posts on this thread and I do agree with a lot of them. To this date, all of my siblings and spouses still have jobs plus myself, in addition, my close friends are all still employed. A client mentioned to me on Friday that he bought and sold a house with reasonable market value. Thank you for this timely post. My faith is in GOD.
 
It isn't good

Yep, I was laid off for the 2nd time within 10 months the end of Sept. I work in the architecture/interior design business which is definitely not recession proof. I live in the 5th largest city in America (Phoenix AZ) and there were over 300 hundred of us that applied for a position in an architecture a month ago or so. This is the longest time I have gone without working since I was 15. It is upsetting and depressing. For Christmas this past year, we did not exchange even one gift (not that that's what is about), but we are not able to spend one extra dime to stimulate the economy. My husbands job with American Express travel will be reviewed for layoff in the next 6 months. Things are not good. All we can do is take it one step at a time.
 
My best friend received foreclosure papers last night and informed me her car was repossessed last week. I feel awful for her! I don't know how I can help her. I suppose I could let her move in with me, but that would infuriate my ex and probably cause problems with my custody of my daughter, since this friend is a little on the wild side.

I just hope her family comes through for her.
 
When I hear things like your best friend's problems, I wonder, how did she get to this point. Has she been laid off, and because of that, the ball started rolling?

I work with a woman who admits she and her husband made some very poor decisions financially years ago. They bought a house that is not within their means, and now cannot be sold, they bought expensive vehicles that they cannot afford. They have charged their cards to the max on trips they took, and now they have two kids in college that they are unwilling to let the kids get jobs to help pay themselves. So she is very nervous about lay-offs(which we have had, and she is probably the weakest person on our team, although a good person, and good worker, knowledge is not real good). It does break my heart to see the stress she is under, but I wish they had asked advise of someone before they made these decisions. Someone who would have told them that living under their means, with hardly any debt is the way to go. To her credit, she is very cautious about spending now, and working hard on turning this around. As long as she keeps her job, I think they will pull out of this fine.
 
It may not be *that* bad yet...but it will be soon. Although I already think it's extremely bad. My husband's company has gone from 22 down to 5 plants...we've taken a major salary cut along with many others, 1/4 of our retirement is gone......but we've also seen God work in amazing ways to help us keep a roof over our heads (albeit a smaller one) gas in the tank (of our old cars...newest is 10 yrs, others are 14+), food in the cupboards ~ maybe not always what we want to eat, but it's food...God is faithful....
Every single person I talk to is being negatively affected...and yes, there are certainly people who made poor financial choices in their past which led to some of their current crisis, but I'm not about to claim I've never made a money mistake or that because they bought a house they couldn't afford they deserve to live on the street now.
I do believe that if we come together as a country we can survive and will again thrive. We are AmeriCANS!(as Chris Cuomo says!) Now is the time, probably the most important time since the Great Depression to work together and help eachother regain our footing!
It will get better again....but I'm pretty sure it's going to get worse first!
 
I agree that a lot of the corrections taking place were needed, and people who were getting ready to retire had no business in the stock market, so I'm not that sympathetic. But what scares me are the job lay-offs across almost ALL industries. The unemployment rate is the true misery factor, and the big lay-offs are really just now taking place. So we don't really know yet at this point how badly off people are going to be. They just reported on the news yesterday that 15,000 educators in New York are about to be laid off! I can hardly believe the number. Many of those will be people who were packing the malls just a few weeks ago. So, unfortunately, although I hate to be a downer, I see greater misery ahead until the unemployment rate starts to go down again. :(
 
I agree with Nancy. I live in the "Silly-con" Valley and there is a lot of money around here. The average car is a Lexus and I routinely see Rolls, Bentleys and Austin Martins. I mean daily. We're seeing the signs of an economy in trouble even here. I can find a lot of parking spots at the mall - it used to be I had to valet the car, or "stalk" someone coming out of the mall. Layoffs are hitting really hard. Friends who are ace sales reps and could always find a job in a heart beat are finding it difficult to find work. Companies who have been the bedrock for industries, such as Microsoft, are laying off employees. And early retirement? Um, the tech industry doesn't offer retirement plans. These are full lay offs. And include highly talented people. Us Bay Area residents are very generous to those less well off than us so there are many homeless shelters around, but those are all full. And while we don't have bread lines, we do have lines to get food stamps and for the unemployment office. Different times, different lines...

And like Nancy, I don't think we've seen the worst of it yet.
 
I can't even stand listening to the news anymore. It causes me high anxiety, panic attacks, and just puts me in a state of depression. I even changed my webpage from Yahoo to Cathe's forum page, because the less I read the better off I am. I don't have my head burried in the sand, but it causes me too much pain to see what's going on. There's not a day that goes by that I don't feel greatful for what I have, and I don't take any of it for granted. I also feel it's going to get worse before it gets better, and it could affect some of us who are doing ok right now. I think it is making me a better person, and makes me want to help others who are less fortunate.
 
dorothyrd said:
When I hear things like your best friend's problems, I wonder, how did she get to this point. Has she been laid off, and because of that, the ball started rolling?
Click to expand...

Not really sure what it was. She has a job which doesn't pay TOO bad, but maybe the expense of owning a home was too much for her. I just don't know and I won't pry...it's not my business.
 
dss62467 said:
Not really sure what it was. She has a job which doesn't pay TOO bad, but maybe the expense of owning a home was too much for her. I just don't know and I won't pry...it's not my business.
Click to expand...
Understand, you cannot ask those questions, but it is possible, just like my co-worker, she bought much more than she could afford.

I am so glad I was raised to be frugle, as was my husband. We got pressure a few years ago to buy the big giant house but we said no thanks our little house and little mortgage are fine.
 
Yes, it truly is that bad. I have not been personally affected yet, but I can see it coming. I work in the brokerage industry and business is sooooo slow. My spouse works in the entertainment industry which is greatly affected. We haven't had a layoff yet, but I wouldn't be surprised if it happened. Luckily we purchased a home that was well under our means. Most of our friends and families were surprised we were buying such a small home in an older neighborhood. These were the same people who all had one if not two new homes built for them over the last 10-15 years. We drive old cars until they die so we do not have to have car loans. We do not ever carry credit card balances and do without luxury items. So if one of is laid off it won't affect our lifestyle a great deal.

My family members however (the ones that bought the most house they could) are pretty much one paycheck away from not being able to make it. All of my family always drive new cars and have beautifully decorated homes. It's just not worth it to me. I have taken a lot of criticism over the year from my family for my frugalness, but I guess I won't be anymore. Heck, some of them may need to move in with me.
 
You must log in or register to reply here.

Our Newsletter

Get awesome content delivered straight to your inbox.

Top