REALLY Worried About the Economy

The news is bleak! I just read that both European and Asian stock markets are crashing in response to the US’s recent economic failures. It looks as if the rest of the world doesn’t believe our “bailout” is much of a bailout at all!

I am really terrified - and I mean anxiety attack, scared out of my mind, sick to death kind of terrified - that this could mean a world-wide economic depression on a level we have never seen before.

If the animal excrement really does hit the occillating turbine, we will have to dig deeper than our ancestors did during the “great” depression. (This depression will be far “greater” than that.)

What do you plan to do to get through it? Will you grow your own food? Barter/trade instead of pay cash? Sell off everything you don’t need to pay off your debt? What can you/we do to survive? (We will all need to do a combination of EVERYTHING we can think of in order to survive, I know. But let’s start generating those ideas NOW! We’ll need them!)


Fourth Generation Legacy

Monidew, I don’t think it is going to be as bad as all of that. Have you ever listened to Dave Ramsey? If not, you should check him out. He has compared statistics and said it is no where near the great depression. Chill, lady.

It is terrifying, isn’t it? Unless, of course, you are a Wall Streeter and the gov’t just handed you $700 billion plus another $150 in tax breaks.

I’ve just started to hear the word “depression” bandied around.

My dh listens to short-wave radio most of the time so he seems to hear things a bit ahead of what comes out in the media here. Seriously, we are having a hand pump installed so we can access our well at all times.

I have a garden but since it was my first crack at it this summer, I don’t have much left to show for it besides some cukes and peppers that need harvesting before tommorrow night’s possible frost. Having a garden did help greatly with my grocery bill during the spring and summer but that didn’t offset the costs of building the beds and buying plants.

We are cutting back on most expenses that aren’t truly necessary. Hopefully, we will be able to continue to buy the essentials like food and clothing and put gas in our cars but I have heard that gas is scarce in the Southern states since Hurricane Ike. I’m wondering if that scarcity will be travelling north anytime soon.

It’s hard to comprehend the full potential impact of these troubled times. I’m trying to keep optimistic although that’s hard to do. Some days I just can’t bear to listen to the radio or watch the news. Which is tough because my dh likes to come home from work and turn on BBC America while I am making dinner. If you think things sound bad from our end of it, you should hear it from theirs.

Try not to worry so much. It’s really not going to be that bad. I think the worriers are the rich folk that have a lot of their money tied up in stocks that revolved around the mortgage industry. I don’t have that worry. There will not be a worldwide collapse. The media is hyping things because its a good news story. Stop watching the news.

However, on the positive side of you’re wanting cost cutting measures - you knit. You can make your own clothes!

Sure the stock markets are bad right now, no doubt about that. Are we heading for a depression? I think the economy will slow down for a while, some people might lose their jobs. But I think it’s going to be temporary, and I really doubt there will be a depression. No need to panic. :thumbsup:

My grandmother (who got married in the middle of the Depression) once told me that when big stuff like this happens, you can’t let it take over your life. You deal with what ends up on your plate, and really, try to ignore the rest. Worrying about it does you no good - it doesn’t make the situation easier to deal with, and it doesn’t make the situation better. What happens to the market will happen to the market. She told me this when, as a college student, my entire campus was flipping out a bit over the first Gulf War. (Was this going to be a big war? were they going to reinstate the draft? worry, worry, worry)

So, take a deep breath. Let go of the problem. If it works for you ask God (or a Higher Power) to take care of the situation.

If you want to do something - anything at all -, just spend mindfully and think about what you buy. What’s the best buy (quality and price) for your money? Do you really need a new X when, once you think about it, you have a lot of Xs in your closet/cabinets at home? Are you throwing away perfectly good stuff which you could use? But don’t panic. I don’t think we’re anywhere close to the point where you need to sew broken shoelaces back together.

It is a scary prospect, but it is one of those “we have to wait and see” things.

It is like waiting for the next 9/11. If we all sit and wait for it to happen, it will paralize you.

I am a girl guide, and it is always good to “Be Prepared” but that applies to everyday life. What is the old saying, Prepare for the worst, hope for the best smiles

Moni, I won’t tell you not to feel the way you do… you’re allowed to feel however you want to feel about anything! I’m sorry you’ve been sick with worry over this, though, and hopefully you’ll find some resources here you can use.

The only advice I can offer is to prepare in the best way you can, in the best way that makes you feel safe, secure, ready. If that means starting to grow you’re own food, then start researching NOW what you’ll need to do so you’ll be ready come planting time this spring. Make a list of the stuff that you absolutely must have, and then decide for yourself how much you really want to keep the “extra” stuff… then sell/trade what you don’t need. Investigate ways to change your lifestyle so that you’re prepared to live more frugally. If/When this turns out to be less serious than you’re expecting, you won’t have lost anything you didn’t need, and you’ll have gained some new skills along the way. Most importantly, you’ll have some peace of mind, and that’s what you need most of all.

Hang in there!

If nothing else, I think this is a good wake-up call for everyone.

I know that my family has been making an assessment of the things we can do without.

I’ve made some budget cut-backs, but only because my subbing work is not paying as much as my other part-time job…not necessarily because of the economy in general. I’m trying to lower some bills and have cut out things like my cable’s DVR and HD channels, which is going to save me about $40/mo. Do we really need to watch so much television? We’re also hanging clothes to dry in my garage, and I’m getting blinds installed in some rooms to cut down on our electric bill. Little things that will hopefully make a difference.

This is a good time to teach our children about being fiscally responsible.

Remember that the economy operates in cycles. If we go into a depression, eventually, we’ll get out of it. What goes up must come down and likewise.

Hang in there!

I survived as a child of the Great Depression. No, there were no multiple TV sets in the house, all hooked up to cable, etc., a vehicle for everyone old enough to drive in one family, expensive vacations, cell phones for everyone, desktops plus laptops, in general things that really are not necessities. I really don’t think this will happen again in this country, but it might be a wake-up call for the younger generation to really take stock of what they need and what is a luxury we can all live without. I realize you are worried, MoniDew, which is healthy but I would not panic. Gee, I hope I don’t have to eat these words. Born in '29, three weeks before Wall Street Crumbled.

Moni - the best thing to do is to just take a deep breath and worry about today. There are always going to be things out of our control so you have to take an inventory of the thins that ARE within your control and just take care of those. Worrying about the rest will just drive you nuts. (In the interest of full disclosure I am a humongous worrier and completely understand your anxiety, so I am simply handing down the advice given to me through years of therapy and hoping it’ll help you too :slight_smile: )

For a little perspective though, here in the USA unemployment was around 23% during the Depression and that is a conservative estimate as we didn’t have the best record keeping back then and many people were simply embarrassed to say they were unemployed and therefore lied to the census bureau. Actual unemployment may have been MUCH higher. Plus the records never took into account that many of the “employed” were severely underemployed and still not making it. That IS not what we are facing right now.

I have no doubt that even if the worst were to happen (which I don’t believe will be anywhere near the 1930’s) we will all come together and we will get through.

I have listened to many stories from people who lived through the depression. My own father was born in 1931 to an immigrant family and 6 of his brothers and sisters were either grown with their own families or old enough to work during the depression so I heard about the hardships a lot from them. They never denied it was hard. I listened to stories about ketchup soup and stories about my father and his little sister riding in a wagon being pulled by his older brother to go get whatever scraps were available to them, but all in all the resounding answer to the question “How did you get through?” is a shrug and “You just did.”. We all tend to look back on our pasts nostalgically so I know some of what the older folks say might be tinged with their own need to feel that their youth was better than the youth of today, but I always get the feeling that although it was the worst of times for America and the world it was also a time when many people came together to help out where they can. My own grandmother used to always leave a pot of stew on the stove when she went out to run errands and the front door was never locked. Her opinion was that if there was someone worse off then they were that was hungry they were welcome any time to come and have a bowl of stew.

Perhaps the good thing to come out of this is that as a whole we might learn to live more within our means rather than by credit alone, we might begin to enjoy the simple things in life and realize that we don’t need that big flat screen HD TV to enjoy an evening with family and we might even come together as communities. I know many of us here already have those values, but as a group we’ve been running amok in the mall with our grand or great grand kid’s credit cards for a long time. Unfortunatley, they are the true victims who will have to mop up the mess of this bailout long after we’re gone.

It is certainly a concern, especially for those of us who’s retirement is dependent on the market (PERS). So far we’ve not noticed any change, but those things may take time. DH has said if he has to he’ll go back to work as would I of course. Fortunately our house is paid for so that helps.

:hug:

I am not afraid at all. I think that we are in for some difficult times but for those who have not lived on credit or lived beyond their means it will be survivable. I do not use credit cards, pay cash for everything (including my car) and have only a small mortgagee. If I can’t afford it, I don’t buy it.

It will be very difficult for anyone headed into retirement in the next few years. for them I feel very badly. Many of my patients have worked hard all their lives, invested for retirement and lived responsibly only to find out that now they have little left in their pension. It is heartbreaking to see.

I have followed Suzi Ormon’s financial principals for years now and believe that as hard as it is this is a wake up call that has been years in the making.

This is a great time for anyone with any extra cash to invest in the stock market. My stock account has lost alot of money in the last month and will lose more befoire it is over but last week I cashed a CD and bought some more stock. I believe that long term the market will recover and if you invest wisely now you will be glad 10 years from now.

Suzi did a great show on Oprah last Friday on how to protect your assets, I think most of her info is available on Oprah’s web site.

Some people will lose their homes, which is sad but necessary since in many cases they bought homes they couldn’t afford in the first place. I think there should be criminal charges brought against the big bank executives and wall street brokers who caused the crash of the mortgagee industry through marginal loans and swap agreements but, that will never happen.

Hubby and I started married life in the early 70’s and struggled for over 25 years with layoffs and job loss. We learned early on to have money taken out of paychecks before we got them and to not buy anything you can’t pay cash for. If that means doing without while saving up or buying used, then that’s what we did.
It is currently scary for us because most of our retirement money is in the stock market. None of our jobs pay much in the way of pensions, so we’ve been responsible for saving our retirement income. We hoped to retire in 4 years, but may end up working longer. We will survive as will all of us, just not maybe in the style to which we’d like to become accustomed.

I first read this thread this morning when I got to work… and I thought maybe you were overreacting just a bit. Then the DOW took another 700 point plunge… now I’m not so sure. I don’t have a huge amount of debt, and assuming we both keep our jobs I won’t have any problems keeping my house or my car payments under control. I have one credit card with a balance I’m not entirely comfortable with, but it’s not bad. I hope that the dropping gas prices will help balance out the falling economy.

I live in Alabama and the only reason the stations are out of gas sometimes, is because people panic. If everyone had just bought their gas, as normal, this wouldn’t happen. If they don’t have it at one station, you can go a block or two and get it at the next. It’s not like they stay out of gas either.

Difficult times are just starting in the UK apparently, but here in Italy we started tightening our belts about 5 years ago. As a family we used to be pretty well off. Four kids and I wasn’t working. Not much in the bank, maybe, but we could go on holiday and go out to eat when we wanted. Not any more. My husband is retired and on a good pension and I went back to work several years ago. We never bought a house 'cos renting is common here and our rent was always a minimal part of his income. Now it costs more than my total salary. (If it were a mortgage it wouldn’t be much different). One fact as an example: the average rent of a TWO ROOM flat here is about the same as the AVERAGE WAGE. How do people manage? That’s a whole other story.

Hi folks…I’m in Scotland and we are fearing things same as you folks in the USA. We don’t know what Bank is going to go under next…or what state our country is going to be in tomorrow. Maybe this is a time for us all to think of what we need in life compared to what we want…and as the poster above says it may or may not make our youngsters take note. Most of them have so much these days and a big lot of them have no real knowledge of the state of their families’ budgets never mind the nation’s. Thinking before we spend is not too hard to do…and maybe some of our Banks and lending companies need to take this on board.

He is very good and he also offers financial classes that I have heard are wonderful.

Love him.

The world economy has been much worse in the past, yet we are still here. Don’t sweat it. Personally, I hope this whole credit culture is finally coming to an end as I think it’s just insane. Good riddance.

There was a time when someone wanted something they…shock…saved up for it.