My guess is the DOW has 00 to 900 points to go down before it bottoms. I suspect it will start a slow recovery then......but
The problem that started it all, still exists, plus all the offshoot problems.
Credit is dead, maybe for good but certainly for a long time.
Food is still going up.
All the daily, weekly and monthly bills are still there.
More people are becoming unemployed.
Sadly, here in Va. Foodstamp requests are going up.
Gas is still expensive even though it has come down.
The kids still need new duds.
Taxes are sure not going down
And we are in a DEPRESSION!
Well, I think for the most part, we just have to keep working hard, spending very wisely, growing our own, and cinching up our belts a little tighter. I know for our family, it has meant eating a lot leaner meals than we've had in the past few years.... we're eating sort of like we did back when DH was still in graduate school and money was beyond tight (try practically nonexistant.) We do get meat a little more often now than then, though. And luxuries like coffee and tea. I've got my only two pair of jeans laying on the ironing board by the sewing machine so that I can patch them because they are getting worn, and I won't buy more. We never buy our kids new clothes. They either get hand-me-downs or I can make them if their grandmas would quit stocking up at yard sales! We don't drive unless necessary. It could be a lot worse (and most likely will be before it gets better.)
I can remember times alot worse than we have now. Long way to go before it gets bad but this thing is moving fast. We'll see where it ends up. I figure we'll be back to a 1970's standard of living before it's all over.
Some people are still oblivious and don't want to think about it but some are waking up.
I am getting away from planning for working on big jobs away from home ...they're not coming anyway...and building up local buisness more.
Quote from: ScottA on October 09, 2008, 10:54:30 PM
I can remember times alot worse than we have now. Long way to go before it gets bad but this thing is moving fast. We'll see where it ends up. I figure we'll be back to a 1970's standard of living before it's all over.
Times aren't bad at all right now Scott....but everything is in place for it to turn quickly. Just think of the family who has three or four days worth of food in the house, a full tank of gas in the SUV, mortgage due on the first, electric due on the 5th and all they have as far as emergency money are credit cards.
One or both working members go to work to find the doors chained or pink slips on their desk. They have 15 days before things turn nasty.
Total Collapse:
Will it come? What to do?
This is one of the main reasons we have bought property away from the big cities. Well stocked with food and propane to cook and heat . . .
Will the collapse come? Hope not . . . But best to be prepared.
I'm traveling to visit my mother in MN this weekend. First time in my life I am actually afraid to travel. I am concerned about getting back to my home if there is a total collapse. It won't be like in 1929. People won't be waiting in food lines. . . Martial Law? No rights? No Traveling? Total chaos?
Best to keep possibilities in mind and at least be prepared.
Not long ago many thought the meltdown was a conspiracy theory of the doom and gloom people.
Quote from: glenn kangiser on October 10, 2008, 09:14:04 AM
Best to keep possibilities in mind and at least be prepared.
Not long ago many thought the meltdown was a conspiracy theory of the doom and gloom people.
That's a very good point Glenn....I've amused myself watching all the idiots that were advising me to stay in the market and ride it out. Until this week. They've been standing around with their mouths open.
I think you are quite a bit above them, Peter. At least you grabbed your popcorn and watched.
The first I heard this would happen was about 9 years ago when an ex-Navy intel guy said that whenever Daddy Bush wanted something to fail he put shrub in charge of it. Now the buyouts for pennies on the dollar....
Quote from: bayviewps on October 10, 2008, 06:19:37 AM
I'm traveling to visit my mother in MN this weekend. First time in my life I am actually afraid to travel. I am concerned about getting back to my home if there is a total collapse. It won't be like in 1929. People won't be waiting in food lines. . . Martial Law? No rights? No Traveling? Total chaos?
Go on your trip, enjoy your time with family. The troubles of the world will be here when you get back.
One of the things that scares me the most is the inability of the new credit being offered by the Treasury and FED to move the banking system.
There is an economic term called the "velocity of money" - it has to do with how many times a dollar in circulation changes hands.
In a vibrant active economy that single dollar might change hands 100 times and produce $100 worth of economic activity in a year. If you have that same dollar and stick it in a mattress or give it to your banker who is unwilling to loan it out then making money "available" will not have much of an impact on the economy.
Everybody is pulling back, standing on the brakes and holding onto their money. Velocity is falling fast! People aren't buying cars, they're postponing vacations, etc. Banks, who have plenty of money, are unwilling to lend it - even to other banks! This is putting a huge braking force on all economic activity, and unfortunately, it feeds on itself.
People are not buying cars and that leads directly to the fact that GM is likely to go bankrupt. When GM goes so will Ford and Chrysler since no one wants to be stuck with big union contracts and pension payments when they can't sell cars. Auto workers who are unemployed will not be buying new HDTVs and so this leads to another contraction in the electronics arena.