Never Mind Recession....Do You Think We're Heading For A Depression?

@pyewacket (44032)
United States
September 23, 2008 2:46am CST
I don't think any of us can escape the dire news we've been hearing about the whole dire financial situation that has been going on during the past few weeks. Now I don't claim to be a financial or economics expert...but from a layman's terms what I'm hearing is that we're for the most part in deep sh!t as far as the future security of our finances in general. Now I seriously doubt if the average person here may be affected since all the major financial institutions and banks guarantee our money up t $100,000, which is a sum I think hardly any of us have in financial assets. But one by one we've been hearing of the financial giants going under...Fannie Mae and Fannie Mac...Lehman Brothers....then our government bailed out AIG....but underneath these financial giants....the ones securing funds for mortgages, etc...are the banks...many which are folding or being bought by yet other banks. Now while none of us may have financial assets over $100,000, or have IRAs, KEOGH plans, 401Ks...how safe is our money?....how safe are the people like me receiving SSI benefits? Will those receiving SSI, Social Security retirement benefits, veterans benefits ....are those people to be affected should the worse happen? These benefits are the ONLY finances folks like us receive. So...does it make you nervous over this financial catastrophe that seems to be occurring? Do you think we're heading for a major Depression similar to the one started on October 29, 1929?
9 people like this
32 responses
@Rosekitty (19396)
• San Marcos, Texas
24 Sep 08
Yes we are and I don't think we will crawl out for awhile..don't know how most will make ends meet since alot of people got married, bought a house for the American dream and now they are living a Nightmare..all we can do is budget, keep things simple and get rid of excess and have a Huge yard sale!
4 people like this
@pyewacket (44032)
• United States
24 Sep 08
It's kind of hard to budget though when you're on a fixed income...for instance, while I get food stamp benefits to help me out, now that food prices are up, my benefits don't stretch out like they used to
2 people like this
@Rosekitty (19396)
• San Marcos, Texas
24 Sep 08
No Food Banks or Angel food Ministries in your area??..sounds like you need it now and fast..Huggs
2 people like this
@pyewacket (44032)
• United States
25 Sep 08
There used to be a food bank quite literally around the corner where I lived...they closed down...there are others in the "area" if you can call it that...but without a car can't get to...the one Angel Ministry is way to far for me to go to
• United States
24 Sep 08
Things aren't looking very good are they? We have too many programs and our government is spread too thin. We need to downsize anyway. Maybe somehow, this will finely force prices to go down. Maybe finely people will stop overspending making China rich. Maybe now people will learn what they really need. Maybe now we can get some true change accomplished in our politicians.
4 people like this
@pyewacket (44032)
• United States
24 Sep 08
Nope the way things are looking it sucks. What also really sucks as in my situation...getting SSI benefits. I did come into some extra money a few months ago...there were some real dire needs I had to get, but also opted to pay off my one and only credit card to get that monkey off my back...But here's the kicker...since my electric bill has skyrocketed I'm actually taking cash advances just to pay the friggin bill...now I have a credit card debt again...lovely..NOT..and I'll have to do the same next month for the bills.
2 people like this
@pyewacket (44032)
• United States
24 Sep 08
PS--also doesn't help that this government spends billions of dollars on a war, does it?
2 people like this
• United States
24 Sep 08
Spending money to protect our country doesn't bother me. But spending billions on paychecks for these politicians we hired does.
3 people like this
@eaforeman6 (8983)
• United States
24 Sep 08
I think that these politicians have catered to rich corporate big wigs and their companies and not looked after the working man!The working man carries the burden and is the back bone of the country but he is not the one getting the real breaks!Do they ever stop and think that without working men , the back bone of this country would be gone?Groceries , should not be this high in the land of plenty. Caps need to be put on what can be charged.God bless the farmers and the working man. It looks like they are trying to eliminate the middle class to me, and we are headed for a one world order
@pyewacket (44032)
• United States
26 Sep 08
No you're right groceries shouldn't be so high....but of course the excuse is that they palm off is the rise in gas to transport our foods to us.
1 person likes this
• United States
27 Sep 08
We'll be able to put it to the test now that they're switching us over to cold-weather gas (which THEY say is cheaper!).
@Hatley (164231)
• Garden Grove, California
24 Sep 08
pyewacket I hope, I think we are not but we are getting close, it wont be that bad, but its bad enough right now as far as I'am concerned.nothing had better happen to my only source of incomel, my social security check. wow. no no no.
3 people like this
@xParanoiax (6997)
• United States
27 Sep 08
I'm pretty jittery, nervous, yes. Makes my talking about this subject a little scatterbrained. But see, I get why this is alarming for the economy. Because banks finance business in this country. No banks, and the businesses take a hit. And remember, they've already been having a hard time for various reasons throughout this year. Banks also handle foreclosures...and there's a big question about what happens to assets like foreclosed, repossessed houses, although that'd less relevant so much to the economy, than to what makes this complicated. Anyway, so it affects all of us. Rich or poor. The rest of us who aren't rich, will notice less jobs. But we've been dealing with that for most of this year, so likely this would just mean for us that things would continue to be hard. Our economy would go through hard times for awhile, if we were to simply let this process to continue. Our global business now is, and would continue to suffer. Now in THIS scenario it'd depend on what circumstances would go on during all this. If other things seriously sucked and people do too many more stupid things with bad repercussions, then yeah...we could go into a Depression for awhile until people created new businesses which would climb to success to be able to employ people, to pull us back up again. This is ignoring the now infamous bailout plan -- which no one knows whether or not that'll go through, at this point. Even though I consider myself a betting girl, I wouldn't touch the odds on this bit. BUT the bailout plan would most almost certainly toss us into a Depression that it'd be much harder to get out of. It'd also last longer, barring a miracle. Heading toward something similar to what what started in October, 1929? Well, I see some chilling parallels, yeah. But I guess it depends on what we do differently. We can do so much differently than what was done then. If we're smart about this, anyway. Would it be LIKE that one? Well, from what I hear, it might be worse than that one. But I still maintain that it all depends on what we all do as a country. Is it LIKELY that we're heading toward a Depression? *WINCES* The odds are in its favor, presently. I'm not an economist either, but I know a little bit about alot of things. I tend to make it my business to know the odds about different things as well...and I spend most of my time lately, on calculating the odds in this economy lol. Like I said, I'm jittery! heh ^_^' How safe is our money? This also depends. Our currency specifically will only survive if inflation goes down. If it continues to rise, it will soon hit value 0 -- and we don't want to go THERE. *shudders* As for 401ks, social security, veteran's benefits...well some of this depends on the government having money to continue this stuff, some of it depends on our small time banks, and with this stuff it's hit and miss. It depends if the banks are smart enough to survive, it depends if our government's smart about not wasting money. I'm sorry I can't touch on each of these things specifically, but like I said...I only know a little bit about alot of things. Alot of people are putting their money in gold and silver, which is HIGHLY valuable now, even foreigners worried for their own currencies are going to gold and silver. I think this is pretty wise. I mean if you manage to get one ounce of gold, then you have nearly a thousand dollars worth of money, right there. I'd like to say that, people like you on SSI benefits, are no safer than people like me who're young, not able to afford college anymore...and who'll be lucky to have whatever job we get or create. For all us regular folks, while our odds are all specific to our lives, the playing field for all of us is pretty even. For example, if government remains or gets a little more steady then you could be the safest one of us all Pyewacket. If I manage to get into some serious farming and selling my wares next year, then I could be doing as best as could be expected for someone in my circumstances. It all depends, and the future's not lookin' that good over the next few years, and all of us can only be so prepared...but, as long as we're on task and alert -- and perhaps this is overoptimism from me, who's been a big critic of overoptimism especially on this subject -- I believe we can weather it all.
2 people like this
@pyewacket (44032)
• United States
29 Sep 08
Wow what an answer..LOL I too see some chilling similarities with the 1929 crash... I sure hope to save our economy the govt doesn't decides to cut back on SS or veteran's benefits which are barely livable to begin with. As for 401K plans,....those are usually backed by the big major finance institutions, like AIG....also pensions...and we all know AIG isn't doing so great ...A lot of banks could fold....I heard Washington Mutual was taken over by JP Morgan (Chase), and my bank HSBC is letting go of 1,100 people
• United States
29 Sep 08
Thanks for enlightening me, Pye. =) I hope not either, goodness knows, people need all that they can get. I guess it's a bit much to hope for that everyone with retirement plans could keep them should we go into a Depression, huh? They're saying that the age of investment banking is over (alot of economists that is), and most of the biggest banks seem to be crumbling every day...so I'm not sure the odds of 401k surviving are at this point Just looks bad. Out here in the middle of nowhere, most of our banks are small time. But I don't know what sort of business they all do and where, so I'm not sure how much we'll be affected just yet.
1 person likes this
@1grnthmb (2063)
• United States
24 Sep 08
I think we are in a depression. When I read that the stock market had not plummeted so much since 1927 it really indicated that we are there. And the Bank bailouts is the prime proof of it.
2 people like this
@pyewacket (44032)
• United States
24 Sep 08
Supposedly our government is supposed to come up with some major "plan" by Friday to help the economy...just hope it's the right one
• United States
27 Sep 08
Actually to put things simply a recession is a slow down and a depression is when the economy grinds to a complete and total halt. Just below a depression is collapse (just to remind us that things CAN get worse lmao). I'm not sure why they didn't color coat THIS. I mean they color coated the terror alert crap, why not this too? The bailouts are very reminiscent of the Great Depression, I agree. _
1 person likes this
• United States
23 Sep 08
Strange, I was actually talking about this with someone this morning, and I'm not sure, maybe, the dollar is becomeing almost worthless now and there arnt nearly as many jobs available, this whole gas thing is going to kill us. It probably wouldnt be such a big deal if we werent SPENDING 70 TRILLION DOLLARS A YEAR ON A FREAKING WAR IN A COUNTRY THE SIZE OF CALIFORNIA!
2 people like this
@pyewacket (44032)
• United States
24 Sep 08
It does seem our government priorities in spending money is in the wrong direction and in a sense always has been which is why we're in the mess now.
• United States
24 Sep 08
History does repeat itself, no one can say we weren't warned.
1 person likes this
@sedel1027 (17851)
• United States
23 Sep 08
Funny you should post this. My husband was talking about the depression to his mother right now. According to what eh said - I don't know everything about the depression and I haven't studied it recently - that a lot of what is happening now did happen before the Great Depression which is why we are seeing the Feds bail out failing businesses. We don't get any of those benefits and I am nervous. We are starting to find more secure ways ti make our money because the financial future of this country is so shaky.
2 people like this
@pyewacket (44032)
• United States
24 Sep 08
Yes it does sound like all the "signs" are there...more people being laid off of jobs, businesses going under, rise in gas and food costs, the foreclosure of homes one after another. People for the most part have been living high on the hog for many decades....while not extravagantly rich, at least very comfortable, and that's exactly what happened during the 1920s just before the "crash" in 1929 They are now talking though about severe budget cuts statewide here that could affect schools, fire and police, etc
1 person likes this
@sedel1027 (17851)
• United States
24 Sep 08
A lot of people are going top start to be affected. What the government should first do is get control of insurance rates and the cost rent on apartments. The insurance restrictions will help everyone and the renters will get the relief from lower rents. We pay 1310 in rent every month. Now we moved out of place that was 900, a lot older and smaller; so we did upgrade, but with the economy around us (we are in Louisiana) still stronger than most state (there was a huge article in Sundays paper about how the cut backs haven't even touched our state yet) and the vast majority of people being working poor (or even worse) something has to be done now.
2 people like this
• United States
27 Sep 08
i'm been saying this for over a year,yes. we're hemorraging money as a nation,with war and bailouts,jobs don't pay enough, some are going overseas and others are being closed out. i live in an area where the average minimum needed to survive is $15 an hour,jobs pay minimum wage,so you have to get a second IF you can find one,and if you have daycare that takes one job's wages so you really need a third job.. and of course the state keeps claiming nothing's wrong,everything is sunshine and unicorns..while the foreclosure list daily gets bigger and bigger.
@pyewacket (44032)
• United States
29 Sep 08
Yes I hear that all too many people are needing to have two, even three jobs just to make ends meet nowadays...also since rents in homes have soared so much that two or three families are living in one apartment..I think the govt in general has had blinders on for too long about our economy in general
@worldwise1 (14887)
• United States
24 Sep 08
I believe that a Depression is inevitable, pyewacket! If anyone is a fan of late-night talk radio(as I am), this would have been evident a long time ago. Those in a position to know have been warning about this state of affairs for at least a couple of years now. That is what sparked the rush to buy gold and invest heavily in other currencies than the failing American dollar. I was so happy to hear last night that the FBI is looking into the possibility of fraud in connection with the failure of some of these huge financial institutions. Also, where were the watchdogs who were supposed to be keeping an eye on these institutions while this was coming into being? There are many questions that need to be answered. I, for one, hope the American people will not be fooled into bailing the miserable crooks out of this mess. They should be made to repay as much of the money as they can and have to serve time in prison for their crimes against the public. It is so unfair that they get to walk away with millions while the taxpayers are being asked to cover their a$$es!
@pyewacket (44032)
• United States
26 Sep 08
Yes I also heard that the FBI is investigating fraud as well....um....My question is why didn't they investigate sooner? This could have been avoided then or at least prevented
1 person likes this
@MissGia (955)
• United States
24 Sep 08
I don't know about the rest of you but i already feel like im in a depression. I lost my job a few months ago due to the economy. My dad has been laid off for 3 weeks due to lack of work..so thats 2 of us in one household struggling on Unemployment. Those of you who do have assests, you won't have any or as much in the years to come if stuff doesn't make a change for the better. It's already hitting the lower middle class..it's coming for the rest of ya's to.
2 people like this
@pyewacket (44032)
• United States
26 Sep 08
I'm so sorry to hear this...here's hoping that you and your dad can get work soon...I know how unemployment sucks....it's usually about half the income one was getting right? My mother was on unemployment for awhile herself years ago
• United States
24 Sep 08
I don't know how far it will go, but I can say that most of this problem was caused by irresponsible lending practices. Everyone out for the almighty dollar and trying to take advantage of the mortgage boom. I think the financial system has got their priorities quite backwards anyways. The almighty credit score has become the god of your financial stability. If you have a low credit score you pay more for your house, and to me that is just plain backwards/ The laws of supply and demand are no longer a viable financial premise. When you have a faltering economy, then you should be bolstering it by making the things everyone needs affordable. If something is affordable everyone will buy it. Instead we are prisoners of our credit scores. An interesting bit of trivia too, do you realize that over 75% of the jobs in the financial field are related to keeping, processing and reporting credit scores? Amen to the American Dream, that is if you have a good credit score.
2 people like this
@pyewacket (44032)
• United States
26 Sep 08
I'm fed up with hearing about credit scores too. And that really is backward that if one's credit score is low they have to pay more..like duh? I would think it would be the other way around. On the Oprah show the other night the whole show was devoted to the financial crises we're going through...one woman's credit score was low since...get this...she had owed an old bill for a measly $100....she did pay it off but it didn't show up that she had paid it...I mean come on...$100???? We're not talking that she owed thousands
1 person likes this
@lingli_78 (12836)
• Australia
23 Sep 08
to be honest with you, i'm not sure whether we are heading for a depression... hopefully not... but we are sure experiencing some kind of recession... the symptoms are very clear... i just hope that the government can do something to solve the problem and all the countries in the world work together and help one another to tackle this crisis... i believe that if we work together and no country is being selfish, we will be able to go through this hard times together... take care and have a nice day...
2 people like this
@pyewacket (44032)
• United States
24 Sep 08
Well I never remember it being this bad....nightly on the news they have a segment "Economic Crisis"--sheesh...not exactly positive to hear all the time
@gemini_rose (16192)
23 Sep 08
I am not sure what we are heading for, but I do not like it one little bit. Before all this crap started happening we were just getting to a good place financially. We had dug our way out of a deep hole and I was really chuft because I could see this year being a good year for us financially and at last a chance to get some money behind us instead of lending the banks. How ironic that less than a month later the first murmers of trouble seeped through to my eardrums. However, it was not a problem for us it seemed, the people who it would affect first was not us and so I was able to carry on, now though consumer prices have gone up, everything is going up and money has to be stretched out further. We are still OK, but how long for, I have noticed my gas and electric going up, my shopping bill has gone up, and the job industry is shaky, my hubbys work have already got rid of a few hundred with more job losses expected at chrimbo, so it is looking shaky for us really and we have no debts aside from the mortgage. It is nervous looking out on it all, and I cannot answer your question because I really do not know what is going to happen.
2 people like this
@pyewacket (44032)
• United States
24 Sep 08
To quote you.."I have noticed my gas and electric going up, my shopping bill has gone up,.." Oh, how true this is...as part of my SSI benefits I get food stamps, but the past few months my benefits aren't stretching out as much as they used to...I used to crank out articles to write for Associated Content to have a little extra spending money to kind of fool around with...now I need it just to pay bills
1 person likes this
23 Sep 08
Hi pye, Yes it is very frightening to think what is going to happen there, I know it is very bad in the U.S at the moment but I wonder if it will effect us here in the U.K as well? it seems its all happening everywhere and will effect people like us more because I am on benefits as well because of my health, its not bear thinking about. Bright Blessings Tamara
2 people like this
@pyewacket (44032)
• United States
24 Sep 08
Well not to be doom and gloom LOL...but when the market crashed in 1929 on Wall Street it did become a worldwide thing as it had a domino effect
• United States
23 Sep 08
YES! Because of all of these bailouts, taxpayers are going to pay a heavy price for all of this. Our money is not safe at all. Anything can happen between now and the time of the election, or now and next year. This could get real ugly. I fear that our economy is headed for some terrible times. Hey, I have a new book title for J.K. Rowling "Harry Potter and the Bad Economy Crisis".
@pyewacket (44032)
• United States
24 Sep 08
They're already talking about severe budget cuts that would affect schools, fire and police...Mmmm as far as Harry Potter...well, at least he could wave a wand to do some spell ....LOL
@Vladilyich1 (1454)
• Canada
23 Sep 08
The concensus of opinion on the major television news sources and the economists (we're talking chairmen of the Economics departments at universities like Harvard and Princeton) writing op-ed pieces in major U.S. and overseas papers, all think that depression is now almost unavoidable. SSI and VA should not be affected because they aren't invested funds, but almost every thing else will be, especially pension funds. The Dow opened today about +40 and briefly spiked at +100. As I write this (10:30 a.m. PDT), it's at -147.
• United States
23 Sep 08
I do remember learning about the depression. Does anyone have any solid ideas of what it will turn into "hypethetically"? I am not that young but wonder, we have so many electronic options, internet, etc. Are we talking food shortages, or specifics? I guess besides the norm of not affording regular items I am curious as to someones best scenario of the worst? Make any sense? I hope so I just want someone to give me an idea where we may be headed. I have four kids, and would like to be as prepared as possible.
1 person likes this
@pyewacket (44032)
• United States
24 Sep 08
Which Journeytoforever Vladilyich??? I came across a number of them That would really suck if people's pensions were affected.....SS retirement funds are lousy enough as they are...many senior citizens often have to weigh out whether to get their medicines or eat as it is... But while SSI or veterans benefits aren't invested funds they still could be affected, no? They've been saying that Social Security in general might not have the necessary money for retirees as it is with the surge of baby boomers who will be collecting soon
• United States
24 Sep 08
What it will turn into is that nobody will have jobs or money or food but the bills will just keep coming and coming until we all live in the streets......and there will be mass anarchy----at least thats how I see it.
2 people like this
@Lakota12 (42681)
• United States
23 Sep 08
I really dont know and I just cant worry about it. THe government crated this I think they should start fixing it now and makeing more money . How about you!
1 person likes this
@pyewacket (44032)
• United States
24 Sep 08
Well to be blunt...LOL...the government should have been fixing things up years ago, not just all of a sudden like they are trying to do now. Sounds like top aide financial advisoes in Washington have been asleep for too long
1 person likes this
• United States
24 Sep 08
The government DO NOT CREATE THIS. We did. And by we I mean everyone that bought things that they KNEW that they couldn't afford---like houses for instance.
2 people like this
@pyewacket (44032)
• United States
24 Sep 08
Yes in some ways I can see your point NuclearRabbit.....it used to be years ago (many years ago I might add) that if one wanted something..anything..from a car, house, whatever, one saved the money in full to pay in full...we've gotten to be overboard with a buy on credit status type thing. Thing is...on the other hand...it's not always necessarily true that people buy homes they can't afford...perhaps at the time they bought the home their financial status was steady..but things DO happen....people getting laid off from work all of a sudden for instance...an unforeseeable occurrence not predicted
1 person likes this
@Vladilyich1 (1454)
• Canada
24 Sep 08
Be afraid, be VERY afraid! This is direct violation of both the posse comitatus act and the insurrection act of 1807. http://www.armytimes.com/news/2008/09/army_homeland_090708w/
1 person likes this
• United States
27 Sep 08
It's a bad sign, I agree Vladi. Alot of people are saying it's a signal that our government's prepared to invoke martial law if civil unrest happens because of the economic situation (which projects on how bad THEY think things're gonna get), and while we don't -know- that this is why they're violating posse comitatus, I think we're hardpressed to find another reason.
2 people like this
@pyewacket (44032)
• United States
29 Sep 08
I wonder if riots will break out....like all the riots in Haiti with their food shortages?
1 person likes this
• United States
29 Sep 08
It's possible, Pye. Right now I've been keeping my eyes on this gas shortage in the south (since my state's right on the very same main gas lines that run through the south, it's not particularly hard for me to do since people here are concerned as well). See, the thing with gas shortages...is, that there's only so long people can cope without gas. I mean you can bike to work, walk, take the bus, carpool with those who HAVE gas. But the problem is, if you don't have gas, then neither will the truck drivers. Which means gas will slow in getting there, and with supplies low, since everyone NEEDS gas...that means any little bit you have will be gone as soon as it gets there, WHEN it gets there (which will slow down BECAUSE your area doesn't have gas). Which means businesses will be hit, eventually your work will feel the affects, and then it spreads to food trucks that deliver to stores...and everything else. It's not QUITE that bad in the South, but seeing as this problem's persisted and grown since Ike...and that's a week or so now, heh...there hasn't been alot of signs of their shortage getting better. In fact alot of the experts have been predicting that their shortage will get worse before there's even a chance of it getting better. CNN briefly reported that fights have broken out at the gas stations over gas. In North Carolina, apparently, the state government's stepped in and has been offering help to the few gas stations that are still selling fuel. And those very same gas stations, which used to be open 24/7 have changed their pattern to close after dark because of the rising tensions and it's simply safer for them. Good news is, I haven't heard the crime rates for the most affected areas rising or even being affected just yet. Which means overall people are tense, but keeping their cool. They're coping, and not desperate just yet. But you see why I'm keeping my eye out. I guess the government ain't QUITE as oblivious as we previously thought.
1 person likes this
• United States
23 Sep 08
It's funny that I saw this because I've actually been call what we're going through now and what is in the future "The Great Depression 2" lol It does seem like its heading for a depression not just a recession.
1 person likes this
@pyewacket (44032)
• United States
23 Sep 08
It really does seem we're heading for a depression
• United States
27 Sep 08
I swear, after this period of history is over and granted we get to write about it, I want them to call it "The Great Depression 2"...all other names won't do it justice, really.
1 person likes this