Why We're Gloomier Than The Economy

[sunshine2777]

I figured we passed recession and went right into mega depression, regardless of the given definition.

Adversely affected? Hmmm, lets see... my husband is on disability... no, not affected.. so far so good...... however... . I am an independent claims adjuster responsible for my own gas and expenses.... we are filing bankrupcty and losing a vehicle..so I'll have to find a new job... and we all know this is a great time to look for a new job at 48 years old.. (I'm still waiting for Walmart to call me from when I applied 6 months ago)........ . my ex legally stole my children and lives 300 miles away. I drive 1200 miles a month to get them for one weekend a month... ok, so I wont get to my little girls as often..twice a year... yea, I'd call that adverse.... . hmmm. still thinking...I still pay child support regardless how often I can actually afford to see them..... and if I dont, I go to jail.... ok.... things are looking brighter and I havent even touched on the normal household expenditures for food, papergoods and gas. I can't even go on... making me too tired..... :faint

And I can't even begin to talk how "different" this economy is from just 20 years ago..... how meshed we are with other countries... how dependent we are on people who are not our friends... how decisions in govt are made even less with any morality in mind.... oh, making me tired again... :faint.. I feel like giving up....

[HisAlways]

I figured we passed recession and went right into mega depression, regardless of the given definition.

Adversely affected? Hmmm, lets see... my husband is on disability... That is the fault of the economy? no, not affected.. so far so good...... however... . I am an independent claims adjuster responsible for my own gas and expenses.... I asked OTHER than gas and food . my ex legally stole my children and lives 300 miles away. I drive 1200 miles a month to get them for one weekend a month... And, THAT is the fault of the economy too? hmmm. still thinking...I still pay child support regardless how often I can actually afford to see them..... and if I dont, I go to jail.... ok.... That's REALLY the fault of the economy. things are looking brighter and I havent even touched on the normal household expenditures for food, papergoods and gas. I can't even go on... making me too tired..... :faint All the things you've mentioned have nothing to do with the economy, except "papergoods" and gas.
And I can't even begin to talk how "different" this economy is from just 20 years ago..... 20 YEARS ?? You expect no inflation or changes in 20 years?

Other than gas and food, (which I've specifically outlined)I haven't seen anyone claim much, except sarcasm, indifference and nastiness.

We have lived through difficult times. My husband is ready to lose his business, due to gas prices. But, the article has some truth to it.

BibleNuggetLady...do you only warn people about their nastiness when you disagree with them, and when you agree with them, you let it go?:idunno

[HSmomto4]

Yea...I saw it. It said "cash is the safe haven"....where others are saying buy gold and silver.

Point being......everyone is saying something different. In reality, I've seen my gasoline and food prices go up, which makes sense. If it costs more to haul the food, the food will go up in price.

Other than that, in reality, we are not in a recession (if you look up the definition) and personally, my life has not changed all that much except in what I mentioned above. So, I cannot attest to all the doom and gloom.

Has anyone been adversely affected lately, other than gas and food prices?:idunno

My power bill is higher and things I buy in the store that are non food items are going up in price. While I'm not really being bothered yet, I do notice those things and know that there are lots out there that really are having a hard time making ends meet. I also don't feel we are in the worst of it yet. I don't think we will really start to see things get bad till September.

[HisAlways]

My power bill is higher and things I buy in the store that are non food items are going up in price. While I'm not really being bothered yet, I do notice those things and know that there are lots out there that really are having a hard time making ends meet. I also don't feel we are in the worst of it yet. I don't think we will really start to see things get bad till September.

Thank you for a direct answer. Yes....now that I think about it, my electric bill has increased somewhat. I saw a jump in my heating bill over the winter also.

I haven't really noticed "non-food" items at the store, as I go to dollar stores for a lot of them.

Perhaps you're right about September....but I'm curious as to why you picked September?

[HisAlways]

The Weimer Republic in 1923 was not in a recession by definition either when their economy and political party were completely destroyed and had to be rebuilt. That was post WWI Germany....I'm sorry, but the comparison is a bit of a stretch, isn't it?The focus on a "recession" is a media distraction. Exactly my main point.
They are incorrect on the "cash is a safe haven" bias. Another "point" I was trying to make......

I have received PM's/emails from 6 brother's/sister's in Christ this week alone seeking advice on bankruptcies and forclosures. 3 months ago or longer, it was 0 inquiries... None of my business, but perhaps these people did not read the "fine print" when they closed on their mortgages? Is bankruptcy an easy way out for some that have overstretched their incomes? Not saying your brothers/sisters, but I do know of people that have done that....my own family sister to name one. I'm just not convinced that all of these "circumstances" are the 100% result of the economy.
The stock market peaked in 1999. :idunno

Average U.S. wage income peaked in 1971.:idunno

Oil prices impact the whole economy. It takes about 2 years for the full effects of any price increase to hit the economy. We have barely even seen the impact yet. Gas prices started rising in 1999/2000.
The concern is less about now, and more about the near term future. We can not do anything about now, or yesterday, but we can act in preporation for tomorrow. Therefore, discussions regarding today, unless it is an input of predicting tomorrow, is irrelevent. When the "discussions regarding today" are misleading the direction of the populace, which can and will impact tomorrow, I'd have to disagree.
There were people that were unaffected by the Great Depression as well. Only the very rich, I believe. There are many people that are not "very rich" that are still unaffected today. In a poll I read about gas prices, and how it affects "you" on a website, 66% said that they have not impacted them yet. I do not think that 66% in this country are VERY rich. ..Quote:
Originally Posted by jds6958
Sad, the author is assuming those metric formula's have been stable since 1980...

Where did you see that assumption?

The only thing I saw him say about 1980 was:

Quote:
The last time consumers were this miserable, in May 1980, the jobless rate was 7.5 percent and inflation was 14.4 percent. Now those numbers are 5.5 percent and 4.2 percent respectively.

But, you still did not answer my original question. Where did you see the assumption that "metric formulas have been stable since 1980"?

[jds6958]

Where did you see that assumption?

The only thing I saw him say about 1980 was:

The stats utilized are historical published governmental statistics. He is comparing 1980 stat A to 2008 stat A, this is not comparing apples to apples, and these days it is like comparing applies to hamsters. The foundation of the argument is in error (premise), which generates a faulty conclusion (fallacy/logic error).

[BeNotAfraid]

HisAlways--I have read that the foreclosure rate for military families is four times the national average right now. We are facing the same thing. Sure, we can pay our bills right now. We bought this house on a low fixed rate in an area that never saw the real estate bubble. But people are NOT BUYING HOUSES and it is only going to get worse. We have had our home on the market for almost 6 months without anyone even looking at it. So, our choices are to get transferred and pay rent plus mortgage, get transferred and let it go into foreclosure, or get out of the military and hope to find another job in this economy (which would also be a guaranteed pay cut). So subprime mortgages are affecting even those of us who did not have subprime mortgages. And a few years and a few children after buying our house, plus inflation/food/gas prices/emergency 10k dental surgery--even though we have been "responsible" with our money, things are tough right now.

[Tammy]

It has not affected us yet but that could change over night. My concern right now is paying for oil this winter. I just know everytime I go to pay bills they go up. I also feel just because it has not affected us yet we can still be understanding for those who are having a hard time of it. We could all be in the same boat as they are very soon.

[agga40s]

The last time consumers were this miserable, in May 1980, the jobless rate was 7.5 percent and inflation was 14.4 percent. Now those numbers are 5.5 percent and 4.2 percent respectively.

Today's government figures for inflation do not include gas or food. So the comparison is not valid, IMO.

JOHN DIMSDALE: The costs of just about every commodity now in high demand are at or near record levels. And that's putting a squeeze on businesses, says Mark Zandi of Moody's Economy.com.

MARK ZANDI: Given the tough economic environment, they're having a hard time passing these cost increases along to consumers. So consumer price inflation, at least outside of energy and food, has remained relatively stable and low. But that's only because businesses have had to eat these higher costs. It's cutting into profits and that's why profits are down for many companies.

The above quote from here:

http://marketplace.publicradio.org/display/web/2008/05/20/ppi/

You asked about how we've been affected other than gas and food. Every person's story is different, but how about real estate? And in our case, we have a mobile home on the market, already priced at thousands below payoff, and even though we have had promising prospective buyers, none of them have been able to get financing due to the credit crunch.

If you're not being affected, I'm sincerely happy for you. But not everyone been so fortunate. In our case, if we do not sell the MH and find ourselves in the position that we simply can't pay for it, reposession is not even an option, as in our state the bank would simply file for deficiency judgment and sell our primary home at a sheriff's sale, leaving us homeless. And yes, this is the fault of the economy. Real estate prices are plumetting, foreclosure are up, and credit is tight.

I could go on, but you get the picture. It's not just food and gas, and those figures are not even reflected in today's inflation figures. You're basing your assumptions on erroneous "facts."

[BeNotAfraid]

None of my business, but perhaps these people did not read the "fine print" when they closed on their mortgages? Is bankruptcy an easy way out for some that have overstretched their incomes? Not saying your brothers/sisters, but I do know of people that have done that....my own family sister to name one. I'm just not convinced that all of these "circumstances" are the 100% result of the economy.

It is comforting to place blame on other peoples' "irresponsibility" and blame them for their own problems. Then you can convince yourself it won't happen to you. When the subprime mess started being pumped up in the media a few years ago, I thought --well, I guess those people will learn their lesson now. I have since spoken to a lot of people who are struggling and it wasn't because they were irresponsible, and I feel like a first rate jerk. My elderly grandfather (late seventies) is working 7 days a week right now because they can not get by on a fixed income. Are there people out there who took out pay option arms and got themselves in trouble? Sure. But to take your personal situation and extract a theory from that and apply it to everyone, and then imply that everyone who is facing financial trouble right now is irresponsible--well, I understand where you're at but you might want to reevaluate your position.