What say YOU about the economy?

[CoffeeCat]

There are many opinions about what will ultimately happen to our economy. The opinions
range from "Oh, we'll have a slight dip, nothing too serious"---to "We're headed into a
Depression that will make The Great Depression look like a tea party."

What do you say? How do you see the future for our economy?

Also, are you doing anything to prepare yourself or your family for changes in our economy?
If you don't think our economy will be severely impacted in the months ahead--maybe you've
made no changes. However, if you think we'll be in a deep recession or even worse--you
might be altering your behavior or planning ahead for hard times.

So, what, if anything, are you doing to prepare for economic conditions that you foresee? Have
you changed your behavior or altered your investment strategies, spending habits, lifestyle?

[KG]

1. radical changes needed, so expect no help from either politcal party.

we are fucked.

[demnan]

2. I've started saving more money

but other than that, I'm not sure what I can do. I have a feeling my job will probably be eliminated soon. I'll be able to get another, I think, because I live in the DC area, but I think this recession is going to be really bad, if not a depression.

[dixiegrrrrl]

4. You need to start job hunting NOW

while keeping your present job.
There will be 100's of people competing for every job, if not now, then soon.

It is always easier to get a job when you already have one.

I know from much experience.

[jtrockville]

8. Wise advice, dixiegrrrrl...

it never hurts to refresh your resume and interviewing skills while you're not under extreme pressure.

[dixiegrrrrl]

12. Man, the minute I felt my job was in danger, I started looking.

And that was in a fairly recession proof economy and profession, where I had needed skills.

I also sat out about 8 years from 1979 to 1986 recession unable to find a "real" job,

So have learned from both sides of the coin.

[magellan]

3. Bernanke says inflation is contained and retail sales are strengthening up

...so I'm going to Disneyland!

:bounce:

But seriously -- the more happy talk they give, the more I think we're in for a world of serious hurt. We're preparing as best we can. The only positive I see is that 95% of us will be in the same boat...and hopefully that'll result in more cooperation on the community level than chaos.

[trof]

5. Once the stock market bottoms out...

(and don't ask me where or when that will be) stocks will stay in what they call a 'trading range' for some time.
Little daily, weekly, monthly ups and downs that tend to cancel each other out. There will be no rapid rebound to the last highs we saw in the Dow.

We're retired, collecting S/S and a small pension. They're not enough to cover our fairly modest living expenses.
There's enough cash (MM fund) in my Schwab IRA to keep us going for another 7-8 years.
Schwab seems to be in good financial shape, as far as I can tell.
My 'invested' funds are down by half.
Total account is down by about 30%.

We've cut out just about all discretionary spending, just sticking to the real necessities and shopping sales and specials where possible.
We have a Prius and a minivan and we're seriously considering selling the minivan. That would save us close to $400 a year in insurance and taxes.

My 'ace-in-the-hole' was our home.
It's a 2300 sq. ft. modified brick A-frame on a 1 1/4 acre waterfront lot.
Back in 2005-2006 we had around $700,000 equity (we still have a $125,000 mortgage).
Now the 'equity' is about half of that.
Given the current credit/mortgage situation I'm not sure if I could sell it at any price.
You asked.
;-)

[Name removed]

10. Deleted message

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[fascisthunter]

6. Republicans and Their Corpocrats Did a Bang Up Job

deregulation failed... Milton Friedman's theory FAILED... Republicans FAILED....

Death to Reagonomics.... buh bye. Republicans prove once again, they are destructive to any economy....

[MadinMo]

7. I don't have a clue.

We have been hacking away at our credit and only have our mortgage (40 more payments YEA!) and one credit card. I'm driving a 16 year old car. We have little savings.

Basically, we've been planning for a worst case scenario and have spent most of our time stocking up food/non perishables. Maybe 3 - 4 months worth. We already heat with wood. We are trying to be self sufficient in as many ways possible. We had a good garden this year and will harvest our sweet potatoes this weekend. They alone could feed us for a month probably. Trying to conserve in all ways.

Living with two 15 year olds makes this an adventure.....

We did move MrMadinMo's mutual funds into some kind of vehicle that will not lose capital. Sorry I'm a dimwit when it comes to these things --- don't know what it is.

I've been trying to sock away cash at home in case things become CASH ONLY.

I come here to read the postings hoping to get a clue what other people think is going to happen. So I'm very curious what others have to say about this. Thanks for asking the question! :hi:

[CoffeeCat]

9. That's why I asked the question...

...because we can all learn from each other.

Half of the time, I feel like I'm living in a parallel universe, because I'm out in the
suburbs, and people are still happily tooling around in their Hummers and eating $6 bagels
at Panera.

It's surreal.

It's comforting to hear that people are taking this seriously.

I've always stockpiled, because I'm a couponer--and when I get things free with my coupons--I get
50 of them. I've shopped that way for the past 5 years, and now I have a small grocery store in
our basement and I really only shop for what I need week by week (eggs, milk, bread, fruit, veggies) and
when I can get more things for dirt cheap or free. I don't know how long we could survive on all of
the stuff that I have. Maybe 3-4 months.

What kinds of things do you have stockpiled? I think I'm going to switch from coupon-shopping (at this
point 50 Duncan Hines cakes mixes for 6 cents each isn't going to help us!) to hard-core essential
stockpiling (soups, canned veggies, beans, etc). I have a lot of that stuff, but I want to really
ensure that this is a stockpile that will sustain us. Any suggestions you have about what you're
stockpiling would be most appreciated. :)

It sounds like you're doing all the right things. You're emotionally prepared, and I think the importance of
that kind of readiness can't be overstated. Many will be blindsided.

[MadinMo]

11. Mostly our stockpile is canned veggies, fruits, tuna, etc.

We also have pinto beans, rice, canola oil (a great buy at Aldis or Dollar General), sugar, flour, salt, some seasonings, coco powder, that sort of thing. From what I've read, the best stockpiling is done with basic, from-scratch type of foods. You can always open a can of beans for a meal if necessary! Although, you can't go wrong stocking up on free or nearly free boxed foods, either, imho. Free is free! Have you checked the LDS website for their suggestions?

I know what you mean about living in a parallel universe. I'm in a smallish town (12,000), but I'm not seeing too much evidence that many people are anticipating what is probably going to happen. There are still tons of people eating out, driving like bats out of hell, and otherwise doing the conspicuous consumption thing. (And a lot of McCain campaign signs..... sigh.) I did notice however this spring/summer while driving the back roads with my newly drivers-permitted teens that there seemed to be lots more people putting in gardens. That made me a little hopeful.

You are right that being prepared emotionally is a big first step.

I'm very curious what others have to say about this!