The US Economy..... thoughts?

United States
December 6, 2008 1:19pm CST
War, or foreign military action (or whatever you want to call what we are doing in the Middle East), is expensive. We have seen from the past that the economy suffers more the longer our troops are engaged elsewhere. And we are seeing it again now. I have spoken candidly with financial "experts" who have all said to just wait it out, it's going to turn around sooner than we think. Panicking is the worst thing people can do, but I see a lot of people panicking anyway. Here there is a big natural gas drilling industry, employing literally hundreds of thousands of people. In the past few months, several of these companies have closed their doors, putting their percentage of those hundreds of thousands of people out in the street. Small car dealerships are also closing down. I read that JC Penney and Starbucks are closing stores all across the country (none here yet but it's just a matter of time I am sure). And it's not just the big money businesses. We have lost local restaurants, Kinkos type printers... The store I work for has seen a significant decrease in sales volume since August. So what about you? Are you worried about the state of our economy? What are you doing in your little corner of the world? I, personally, am not doing anything yet....except watching the interest rates on my savings and money market accounts drop a little more each week. I just hope that people will stop panicking and allow this to run its course. The fewer people who panic, the faster it will all turn around.
2 people like this
3 responses
@LaurenInLA (2272)
• United States
6 Dec 08
I am very concerned about the state of our economy and I think that in any economic downturn, the small businesses are the ones that suffer the most. Banks aren't lending the money that are lifeblood to small businesses. For my part, I'm doing exactly what you're doing...nothing. Everything is simply a paper loss until you sell. Then you have a real loss. The economy will turn around and IMHO one of the biggest problems that we have right now is that people are not spending money. People that I work with have stopped contributing to their 401K plans and are holding off on major purchases. No one wants to get caught with a lot of bills in case their jobs go away. There will be great rewards for people who didn't panic and just stayed on course but it is very hard to do.
1 person likes this
• United States
7 Dec 08
Black Friday sales were up 3% this year from last year and Cyber Monday (people shopping online?) sales were up 13% so people are obviously spending money on personal items. But you are right, with the stock market and savings accounts, 401k's and the like, it's all just a paper loss until you pull out and then you lose real money. It's scary but I hope it all works out in the end.
• United States
7 Dec 08
Speaking from a retail perspective, sales were great Black Friday through Cyber Monday, but since then sales have been dismal. Unless people are holding off for some reason, I think that this will be the worst Christmas shopping season in twenty years. I just saw an article that quotes Barack Obama as saying that the economy will get worse in the first quarter of next year. Unbelievable/
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@suspenseful (40316)
• Canada
7 Dec 08
I am a bit worried about the US economy because it affects us up here in Canada. With the inflation down there increasing, if we buy something from the States it costs more. I hope Sears and Best Buy does not close nor Staples. I do not know if the war caused it because during World War II and the Korean War, things were tight, but I guess people considered them just wars. I do think that part of the problem was people using credit cards and not paying the balance off at the end of the month, putting things on credit, living way above your lifestyle, and not putting away enough savings. Once people start watching, and the credit cards start getting their money, it will turn around.
• United States
7 Dec 08
Absolutely credit cards are a huge problem. I have approximately $3000 in credit card debt and I'm in the minority. Most Americans have, I think the statistic is $11,000. And mortgage lending policies are a problem as well. I personally know about five people who bought their house with no down payment and now they are locked in to whatever their mortgage payments are because that's how their contract was written. They signed up for $1200 a month payments for ten years, not thinking that there was always the possibility that they would be changing jobs or whatever in those ten years and need to refinance their mortgage so now they can't make their payments and have to sell their house before they get it foreclosed. Americans are given a lot for nothing with the promise of paying for it later. Furniture, cars, houses....everything is buy now, make no payments for two years and accrue no interest. But then what happens when two years are up and suddenly the car payments hit.
• United States
7 Dec 08
After watching http://www.zeitgeistmovie.com/ these movies, both of them- all the way through. and taking notes of the names mentioned while researching them, we all NEED to wake up and pay close attention to what's REALLY going on. Panic is what the "controllers" want and use just like the word terrorism. Spend no more than you have to and learn to adjust to your true wants and needs. I hate to say this but the times are just fixin' to get even tougher.
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