By Just Curious

January 11, 2008 8:44 AM | Link to this

I am in the heavy duty truck dealership industry. Orders are off industry wide as both companies, big fleets and owner-operators have severely cut back on spending. Layoffs are occuring nationwide as dealerships prepare to get lean in order to ride this out. Our industry usually preceeds the nation as a whole as far as recessions and large capital spending goes.

By melo

January 11, 2008 8:46 AM | Link to this

yes we getting into recession.Watching my spending habits..true.

By JC Trent

January 11, 2008 8:57 AM | Link to this

Yes, I’m afraid we are headed for a recession..With the impact of record oil prices, the credit and housing crunch, we are fortunate it has not been worse than it is now, but we have to really get serious about alternative energy and reduce the burden it places on business and the economy.

By Time for an Overhaul

January 11, 2008 9:00 AM | Link to this

I have spent the past several years working on a “get out of debt” plan. Not that I have a lot of debt, it’s just to eliminate things like car payments, credit car debt and pay down my mortgage. But then I tend to be conservative anyway.

Being overly in debt has always made me nervous. I’ve lived through many economic ups and downs! I also grew up in a blue collar family living paycheck to paycheck. One small disaster could domino into a huge disaster when you live that way. I learned to live a very comfortable life without all the so-called trappings of success - too much debt!

I am concerned that if we keep talking recession, we will create the self-fulfilling prophecy…..it will happen.

The people of our country need to demand that our government stop sending billions of $ to countries who hate us and never live up to their end of the commitment (nukes, etc). We should start spending that money at home to lower our national debt. The Leaders of this country should be leading by example. They need to be held accountable!!

Not a day goes by that there’s not an article in the paper, a report in the news about the overwhelming consumer debt….well look at our government, if we need more money….we just print it. The head of the GSA was just on the news a couple of nights ago talking about our governments spending habits, not just the Bush administration. This guy’s been there for 30 years, so he’s seen both Dems & Repubs spending… It is high time the government tightened its own belt and focused more on domestic issues!

I for one am sick to death of tax & spend mentality of the Democrats. I am also sick and tired of the Republican failure to deal with entitlement programs, border issues, the war in Iraq, and the open check book for other countries, etc.

We need to clean political house. We could function extremely well in this country with about 2/3 (maybe less) of the government we currently have. We’d never miss the other 1/3 because they are either part of a pork-belly project or some special interest group that ceased to provide value decades ago!

If the government was run more like a business, we’d have already fired & jailed most of the executive office (not just Bush, prior to him as well) and we would radically downsize.

We cannot continue down the same political road we’ve been on for decades. The government is far too big, too costly and delivers little value. If the government were a supplier or even a customer of mine, I’d fire them.

We need a flat sales tax that way everyone pays based on what they spend, then we wouldn’t have a need for the IRS. We need to make sure the billions of dollars paid into SS is available to the Boomers who are now beginning to retire (some of that foreign spending would help here). It is not fair to deny an entire generation who has funded SS for 4 decades the right to SS which is a major portion of many of their retirement plans.

We also need develop a better means of encouraging people to plan for retirement. Revamp the SS to include a larger portion of that money available for the individual to invest.

Americans all need to practice more fudiciary common sense. Don’t buy something you can’t afford, don’t sign up for more debt when you can barely afford to make it between paychecks. For God’s sakes don’t mortgage up your house to run up your credit cards to pay your bills!!!

By ron

January 11, 2008 9:02 AM | Link to this

Small trucking companies are dropping like flies,a recession is on the way.We are in our,if you can’t eat it ,don’t buy it mode until the recession is declared officially dead,say in about five years.

By Nate

January 11, 2008 9:35 AM | Link to this

I knew 8 years ago when this clown got into presidency that this country’s economic state was gonna go from sugar to sh!t. If anyone would pay attention look how he screwed the state of Texas and its economy…the only people that did well were his oil buddies. Recession..yeah..it’s gonna happen because this current president and his administration don’t have the well being of All of America @ heart…It’s a fundamental concept..you can’t take care of someone else’s house until you have your own house in order..I hope and pray that the next president and administration actually do something to help this country rebuild itself…

By Lance

January 11, 2008 9:42 AM | Link to this

Nate - Most people know that 8 years in the normal business cycle. An economy cannot sustain double-digit growth for 10 years…didn’t you take economics 101? Recessions are neccessary. So before you start your “I hate Bush” rhetoric, get a brain.

By Mishap

January 11, 2008 9:45 AM | Link to this

To Time for an Overhaul:

All those billions put in by boomers to SS was spent by these boomers parents long ago. Just as there’s an argument that boomers are owed their share, why should Gen X/Y/Z get stuck w/ the bill for these boomers retirements when these generations will see only the debts of SS. Boomers have had the last 30+ years to sort it out and instead they’ve given the farm to the previous gen since the failure point is still beyond their retirements.

Flat taxes don’t work in practice. It becomes massively regressive no matter what subsidies etc, you try to do. The greater the amt of the tax on goods, the greater the incentive to cheat. Underground tunnels for drugs will be replaced by ones for iPods and Flat screen tv’s. The wealthy will all head for Mexico/Canada w/ big vacation homes bought with cash that hasn’t been taxed. The IRS will be gone…replaced by hundreds of thousands of revenuers looking for sales tax cheats. Should such tax plans gain traction, I’ll be the first on the plane to Mexico trying to build tax haven seaside resorts for American expatriates looking to blow some untaxed cash.

As for the possibility of recession talk, it’s a bit late for most people to do anything. If you don’t already have an emergency cash fund, some plan should income decrese, etc, there’s not much you can do should the economy go belly up. Consumerism doesn’t teach you to hold anything back…the boys up on Wall St. just wouldn’t have it. That way they can make a killing selling you everything under the sun and when you go insolvent, buy it all back at pennies on the dollar, and sell it all to you again later once times are good and you move forward again.

By Nate

January 11, 2008 9:52 AM | Link to this

@Lance, I have a brain and I refuse to allow it be brainwashed with the “stay the course” bullsh!t that obviously consumed your thinking(or lack there of). Recessions are necessary…for who Lance..the rich?!?..Economically, this country was in much better shape before he got in office…its people like you Lance who are seriously naive and so out of touch with reality with the state of this country..and since you’re such an expert at economics…please explain why and how to fix the value of the American dollar..clown

By One

January 11, 2008 9:57 AM | Link to this

Well hell, I DO HATE BUSH!!!!!!!!!!!!

Did ya hear me, I HATE BUSH!!!!!!!!!!!!

Times haven’t been this bad in a long time…………….I HATE BUSH!!!!!!!!!! I am so glad his time is almost up!!!

I HATE BUSH!!!!!!!!!!!!!! I HATE BUSH!!!! I HATE BUSH!!!!!!!!!!!

Okay, so truthfully, I don’t “hate” anyone, but he comes closer to it (hate) than any other being (human or not) that I know of. BUSH SUCKS!!!!!!!!!!!!!! NOTHING, I repeat NOTHING, he has done has been for the good of this country (and I’m not talking about in his sick, little twisted mind)!!!!!

By Time for an Overhaul

January 11, 2008 10:14 AM | Link to this

Mishap - back to my point about a major overhaul of our government! We can’t keep doing what we’ve been doing.

I know my parents generation lived off my SS money, the government has had their hands in the till forever! Boomers are just as divided in politics as GenX/Y/Z, some are Dems and some Repubs, with all the partiship nothing ever really changes.

We have been trying to get SS changed for decades, where do you think IRA’s and 40lk’s began…..some symbolance of an alternative to SS for saving pre-tax $ for retirement. It wasn’t the brainstorm of our government, it was pushed by the Boomer generation.

We did okay during the Clinton years because Clinton did nothing to screw up what his predecessor had already started. He just rode the wave. By the time Bush got in office, we had 9/ll, the dot bomb and Y2k and the economic backlash.

Mishap, you are spot on with your assessment of Wall Street and the run up the debt, repossess for pennies and sell it back to you! It’s happening all across the country - right now.

We have to approach things differently than we have in the past. We have got to demand more from our politicians…how else will we ever affect change.

Maybe a flat sales tax isn’t the best answer, but our current taxation method is not working either. Middle income families are shouldering way to much of the burden.

WE vote these politicians in office based on their campaign promises, not their track record or platform because most of the time they don’t have one, they just critcize the guy in office (they all do it). More often than not once they get in office they forget WHO put them there and WHY!

By Laura

January 11, 2008 10:16 AM | Link to this

I could use some tips on saving money. I feel like I already do a lot of things that people suggest—I clip coupons, I buy store brands when possible, I take my lunch to work or run home and eat there, I have expanded basic cable and not an expensive digital package, etc. Unfortunately, I have student loan debt and CC debt I’m trying to pay off. Is there anything else I can be doing to cut my spending so I can use the extra money to get my debt paid off quicker?

By Nate The Clown

January 11, 2008 10:19 AM | Link to this

Sorry, Nate - you’re the clown. Lance is more knowledgeable about economic cycles than you seem to be. Clinton benefitted from the Reagan-Bush One policies that began to fully evolve after Clinton took office and Bush Two has been fighting against Clinton’s mismanagements. Clinton deferred major spending at the beginning of his administration so that it would look like he was lowering the deficit and get re-elected (it’s well documented, look it up!). During Clinton’s second term, the time for payback arrived and the tide began to turn - we’ve been making corrections ever since. By the way, I’m not falling for this recession bs - I bought a small business 2 years ago and it’s doing better than expected as are all the small business owners I network with. Where’s the recession, buddy?

By John in Tampa, FLA

January 11, 2008 10:29 AM | Link to this

Laura, I was in your position once. I stopped charging on my CC.s, traded my vehicle for a cheaper, more fuel efficient model, stopped partying, changed jobs to a higher paying one, got an additional part-time job, took in a roommate and paid cash for everything. It took awhile but I finally got out of debt and was able to save alot of money.

By bridget

January 11, 2008 10:33 AM | Link to this

YES WE ARE HEADED FOR A RECESSION. OUR PRESIDENT HAS SPENT MORE MONEY THAN EVER FUNDING A WAR AGAINST A COUNTRY THAT DOES NOT WANT TO BE A DEMOCRACY. SURE THERE ARE SOME INDIVIDUALS IN IRAQ THAT WANTS A DEMOCRACY BUT ITS TO RISKY AND UNNECESSARY FOR US TO DO THIS WHEN WE ARE LOSING TROUPS AND NO PROGRESS IS BEING MADE. AS FAR AS RECESSION GOES, OUR PRESIDENT NEEDS TO BE HONEST WITH US. RETIREMENT AGE IS NO LONGER SIXTY-FIVE IN ORDER FOR MY GENERATION (1980’S) TO RECEIVE SS WE WILL HAVE TO WORK UNTIL THE AGE OF SEVENTY OR SEVENTY-FIVE TO PUT MORE MONEY INTO SS SO OUR CHILDREN WANT HAVE TO WORK TWICE AS LONG. WHY DO YOU THINK YOU SEE ALOT OF OLDER PEOPLE WORKING AFTER RETIREMENT? ITS SAD TO SAY THAT SINCE BUSH HAS BEEN IN OFFICE I CANNOT REMEMBER ONE GOOD THING THAT HE HAS DONE FOR THIS COUNTRY THAT WILL BENEFIT US ALL WITHOUT BEING RACIALLY MOTIVATED OR DIFFERENTIATE BETWEEN FINANCIAL STATUS & CLASS. HEALTHCARE HAS BEEN DENIED, WHY? BECAUSE THE UPPER CLASS CANNOT BENEFIT FROM IT. ITS JUST SAD.

By working mom

January 11, 2008 10:33 AM | Link to this

We should ALWAYS be worried and prepared financially. No matter how much I control spending it is out of my hands. I am told how much my utilities will be, I am told how much will be taken for taxes, I can only control my families necessities, well sort of. I don’t feel the best cell phone plan/direct tv/xbox 360 and their subscriptions are necessities but to hear my children tell it you would think it was a right of passage. Don’t worry I send them to a friends to play it is not in our budget! I sit back and worry about health care and health insurance, it goes up every year and now in increments of my birth day every 5 years (higher risk category?) to the point it is draining me and any reserves that we have. I am amazed that it is now MORE THAN my mortgage payment. Once I accept that I have no control over health care then comes the gas prices, double ouch especially living in a city that it takes hours to commute for 25 miles. Next comes postage increase…now what? Review time at work, we’re sorry due to the economy we can only give you a 2% increase for the next 5 years??? so now I want to yell like a child and say, “That’s not fair!”

Does this sound familiar to anyone? I don’t care who’s fault it is and I am not going to go around and bad mouth each and every politician because I can’t control my own spending but I will however, educate myself on who’s policy will help me and my neighbors for the next 4 years (or more) depending on how I feel in 4 years from now. I try to be a realist and start with my local government and expand to the much bigger elections as my knowledge increases.

As for the recession, well I have seen the economy go up and down right now we are on the down; hopefully I am prepared and I will celebrate when it goes up again as does everyone else…

By Mishap

January 11, 2008 10:37 AM | Link to this

@Laura, If you can get your CC down to a lower rate, you can save some finance charges. Balance transfers can work if you’re very responsible and can find a 0% without transfer fees. Beyond that, the only other option is to push for salary growth or a 2nd job if you’re still living at the limits. Consider training/education if you have any inexpensive options to increase your income potential.

@Time for an Overhaul 3 years of public finance economics education tells me that 401k’s and IRA’s weren’t a replacement for SS…instead it was a replacement for pensions as people started living longer. It shifts the burden from corporations to the employees to save enough. SS’s original purpose was for an emergency net and that’s all it should be. Keeping the elderly from begging in the streets and becoming too much of a burden on their children…not a retirement plan. Strong voting amongst retirees (damn you AARP) has perverted it into a full blown retirement fund.

SS could be saved with a few % cut in payout growth and increase in taxes…both of which are political suicide. I agree change is needed but there are few options politically to affect meaningful change. Alternatively, you can just position yourself to make as much as money possible and the rest of society be damnned. This is becoming my current plan as the only way to truly become invulnerable to these policy issues is large sums of wealth.

By Nate

January 11, 2008 10:41 AM | Link to this

@Nate The clown, I’m well aware of those policies..that’s not what i’m debating..my problem with Bush is his CURRENT spending and how that is affecting our country now. I am well aware of economic cycles and how they fluctuate..again…not debating that..my problem here is how none of you delusional Bush wackers have an explanation for the lack of value for the American dollar..whether you want to believe it or not..our country is in shambles..America has been and still is the economic enabler for the world all while our own economy is sinking faster than the Titanic…I want a president who actually gives a sh1t about the country and its well being and who made him who he is and someone(regardless of party lines) to make the U.S. an economic powerhouse again…not another “stay the course” or “no new taxes” crowd pleaser who uses whatever manipulation tactics to get people to cosign his alterior (i.e. illegal) motives..

By a bit miserly ...

January 11, 2008 11:00 AM | Link to this

It always seems that just when things are looking up, the economy has a mind of its own and tanks and yes, I do get nervous about the retirement yrs for which I diligently plan. Never a big spender anyway, it’s easy for me to just spend less. Today I brought my lunch to work, and we haven’t gone out to eat for two weeks and we never spend much when we go out anyway - nothing more pricey than Olive Garden and such places. But we’re getting bored so tonight we might really blow it out and share a Chinese entree. I don’t remember the last time I bought clothes - but then, this is coming from someone who intensely dislikes shopping anyway.

By blog

January 11, 2008 11:11 AM | Link to this

Bridget - must you yell? It is really annoying and then no one wants to bother with your post.

By BOOMER BABY

January 11, 2008 11:35 AM | Link to this

Pensions were not prevalent unless you worked for the big monoliths (Bell, AT&T, Ford, etc.) Mid-size and smaller companies didn’t really offer much in the way of a pension, if anything at all. IRA’s and 401k’s didn’t come on the scene until the early to mid-80’s.

These funds weren’t designed to replace SS, they were an alternative form of planning for your retirement. As most of us know all to well, there is an annual limit as to how much you could put an IRA or a 40lk annually. These amounts have increased over the years, but it didn’t change how much SS was being deducted along with all of your other taxes, your salary and expenses dictated how much you could stash away.

There again is the rub for middle income, it is hard to stash away 15%, when the government is taking nearly half to feed their insatiable spending habits. This is not Bush-bashing it’s all of them!! Both parties are equally guilty.

I don’t view SS as my retirement, but I do view it as a necessary part. I’ve worked & paid SS for 40 years and I’m still working….the bar keeps getting moved, now I have to wait till I’m 65. I have a 40lk and have had, but after the dot bomb mess, it’s not enough. Even when I quote “retire” I will still have to work in order to afford medical insurance.

Those who think Boomers are taking advantage of the GenX/Y/Zer’s, think again, it has been far from a picnic for us. To add insult to injury, we’re have to hear some in our children’s generation whining about us collecting SS money that we’ve been paying for years and not leaving them an inheritance because we plan to spend what we do have before we die.

By J

January 11, 2008 11:38 AM | Link to this

Here we go again, the constant screaming and juvenile temper tantrums by Bush haters. Gee we just had tornadoes across the US. It’s Bush’s fault. My job sucks. It’s Bush’s fault. My wife left me, it must be Bush’s fault. Get a life. Never mind the stock market gained the highest number recently, breaking the record going over the 14000 mark. The stock market is dropping now because we need to find more energy resources. If you were president, could you singlehandedly overhaul our entire government, economy, and way of life within one presidential term? I think not! So you can’t blame Bush for that! Blame the bunny hugger environmentalists who REFUSE to let us drill anywhere to solve our own energy problem for the last 30 years! We haven’t been allowed because of environmentalist whining that building any new oil drills at all is bad because we would disturb Bambi. Also, is it Bush’s fault that people bought more house than they could afford because they were either keeping up with the Joneses or just too stupid to read the fine print “warning, your apr will hit rediculously high levels in a little while, making your mortgage skyrocket”? Yeah, that’s all Bush’s fault that people made those foolish decisions ON THEIR OWN. And I’m sure it’s all Bush’s fault that people spend more than they can afford on credit cards, so they can can feel special, and look “rich” for everyone else. Stupid! One person CANNOT control people’s financial decisions. That would be a DICTATORSHIP. That’s not what America is. Here, you are free to make your own financial decisions, and you’re free to make mistakes and pay the consequences for those mistakes. With freedom comes responsibility so quit looking for the government, or one person, the president, to save you from all your problems.

By always Bush's fault ..

January 11, 2008 12:36 PM | Link to this

Amen, J, and we know that even after the new president is elected next January, it’ll all still be Bush’s fault. Sigh …

By Mary

January 11, 2008 1:12 PM | Link to this

There is no way I could cut back any further than I already do. As it is, myself and my daugther live on about $100/week after the bills have been paid.

Luckily I do not have any debt, other than my house note and the monthly household bills. My car is paid off, and I have no credit cards. I can barely make ends meet by paying all the utility bills/mortgage, etc. and have enough left over to eat on. I have not had any new clothes in over one year, and have been wearing the same pair of tennis shoes for a year, and drive a 10 year old vehicle.

We live on about $100 week, the two of us. I cook dinner at home every single night, and we both take our lunches consisting of a sandwich, chips and a piece of fruit. Dining out, even at a fast food joint, is a luxury to us.

I do have a tiny little bit in savings, and a 401(k) at work. Now if I could only get some child support, then we could get some new clothes and possibly go out to dinner once in a while.

By get serious

January 11, 2008 1:23 PM | Link to this

We DO have the technology to drill for oil in Alaska without destroying the environment. We have to start weaning ourselves away from fossil fuel dependense through alternatives.
There is much that needs to be done to fix what ails this country and we need to start now. Less government spending is a good place to start.

How we each personally spend money is our business and we are responsible the financial situations we create for ourselves. Make intelligent decisions on a daily basis. That is your job!

The government can’t help us raise our children, that is our job. There are too many people out there that think they can just pro-create with no regard for the child. The tax payers foot that bill too. Most of the time that child ends up either a foster child lost in the system, a young criminal or drug addict or dead at a premature age.

We have got to get past thinking our government is supposed to do everything for us. It is not their job, their job is to govern our country and protect our country. We have far too many government agencies trying to be responsible for what we should be doing for ourselves.

Thus nothing is being done well. Perfect example: foreign oil reliance, failed border/immigration policies, a deficient that defies understanding and outrageous entitlement spending! Not Bush-bashing here, this has been a problem under both parties’ administrations.

If the dead beat entitlement folks waiting on their government check would get off the coach or out of the crack houses, go to school, get a job, take care of their children we could eliminate a lot of wasteful spending and government agencies!!! If they don’t, they need to be cut off. Whatever happened to that concept? Recent comment from a pregnant teen, “I’ll just stay home, the government will pay me.” We are perpetuating the problem by not forcing a change in behavior!

By jmc

January 11, 2008 1:50 PM | Link to this

Laura, go to clarkhoward.com and click on message boards. You’ll see a board there titled “dump your debt”. There is a regualar poster with id: cariemuller that is an expert in financials. Both on saving and spending wisely. I’ve learned a lot from just reading her advice to other posters. Personally, i think clark howard is a stupid geek, but there’s some very intelligent posters on his board. You can find information on real estate, taxes, insurance or just about anything. Give it a try.

By Mishap

January 11, 2008 2:04 PM | Link to this

I lose a full 6k a year to SS and Medicare. My overall tax liability is nearing 25k/year and I have a full 40 years until I qualify for a non-existent SS. Assuming I make it into retirement but never make a penny more than I do now, I’ll have put in nearly 300k by the time I’m done and if I was able to tuck that away for my own retirement at a conservative 6.5%, it would be 1.3 million. Probably enough for a safe albeit frugal retirement. Unfortunately it’s money I will never see again.

My only alternative is to pour cash into my 401k and IRA’s which I can’t really tap should I lose my job assuming a lingering recession. Instead I have to keep a warchest of liquid accounts to maintain any semblance to security. This leaves me renting a place cheaper than my college apt and eyeing MBA programs with the hopes that it will make my salary increase enough to be able to ignore these huge work disincentives. Living significantly below one’s means is a way to survive recessions…but it’s also the only way to ensure any true security in the long run given our current course.

By All Bush's fault ... correction

January 11, 2008 2:31 PM | Link to this

You all do know that I meant inaugurated, right? You weren’t even paying attention, were you?

By BOOMER BABY

January 11, 2008 2:34 PM | Link to this

Mishap - I hear what you’re saying. I’m on the over side of your current situation. I’ve been working for 40 years, paid a ton into SS, lost precious retirement money during the dot bomb. I live a conservative, low debt lifestyle. I’ve never been one for keeping up with the Joneses.

I was one of the under 55’s when the last SS change was made to postpone the age of eligibility. I’m praying that there’s money left for me when I “retire” at 65 (provided they don’t change that again). Even then I will have to work because I won’t be able to afford healthcare insurance.

I remember a recent blog about Boomers “retiring rich because they were retiring with a million or so.” That is hardly rich, when you consider by the time you reach retirement age, you are well past any prime earning potential, your cost of healthcare is astronomical and you better hope you don’t get sick! If you live another 10-15 years after you retire, $1 mil isn’t much, it means a very frugal retirement.

By J

January 11, 2008 2:38 PM | Link to this

Hey Laura, there is this one website called mypoints.com and you can get free gift cards to anywhere of your choice. They send you email offers from lots of companies, all you do is click on the ad to get 5 to 10 points each time, and when you get say 6,500 points you get a $50 gift card to wherever or you can get $25 or $100 if you want. I’d been racking up points this way and bought my daughter $50 worth of clothes from Old Navy for Christmas, and it’s all legit. It did take a while, but I didn’t spend a dime, just clicked on email ads. If you do buy something, you get hundreds or thousands of points much faster. You can choose gift cards to Target, Walmart, restaurants, home stores, etc. There’s all types. Also, may I suggest craigslist for obtaining items you need super cheap, or to find a job or childcare. There are moms on there who will swap childcare for free, or just need a place to live in exchange for childcare. Or you could find a nanny job for a few hours a week. I’ve just found the site to be very helpful, and it’s all free to post and reply. I found a job on there, and a huge nice trampoline for $40 for my kids Christmas. I admire you for taking care of your child no matter how hard.

By Frugal

January 11, 2008 2:54 PM | Link to this

Good tips J. I do some Mystery Shopping. It’s an easy way to treat ourselves to a “free” nice meal and get paid to do it. If you like window shopping, you get paid to do it and can get gift certificates, etc. All you have to do is agree to write a review on the quality of the service during your shopping experience. You can sign up on line to be a Mystery Shopper in whatever categories you are interested in or fits your situation.

Kudos to you for being responsible and caring more about your child than how hard it is.

By JCH

January 11, 2008 8:26 PM | Link to this

There’s no need for our household to cut back on spending. We always live well below our means - with no hardships.

One thing is correct - the odds are in favor of a recession. The reason is quite simple. Because the average consumer will believe the doom & gloom of the media and put us there.

By Racebaiter

January 11, 2008 8:59 PM | Link to this

Self fulfilling prophecy people. People worry about recession. People stop spending. Recession occurs. Quit being sheep.

By who cares?

January 12, 2008 6:38 AM | Link to this

Cutting back, yep you bet! When your income doesn’t keep with increases in expenses, time for a little trimming. By the way, these increases are from financial institutions (By the way, I have a fixed rate mortgage), fuel costs, and other “necessary” expenses. Typical “corporate criminalistic” types of increases. I don’t look for much of this to change in my lifetime, but you can bet come this November, I’ll do my part. Since I don’t have much control over corporations, other than voting with my dollars, I can at least have a small effect on the governmental side of things. Just like I hate unethical corporate management, which seems to permeate through virtually all corporations, I hate career politicians who have lost touch. I say “flush ‘em”. Yep, this fall, if your name posts an “I” by it (incumbent), you’re out! Doesn’t matter which party, race, gender, etc., you’re out! Get a job and reflect on past decisions. We all know of the problems and situations that are as a result of political irresponsibility, but talking about them and complianing about them hasn’t gotten us anywhere. They’ll hear your voice through your vote. These politicians simply don’t care because it doesn’t effect them. The only time they address any of these issues with the sympathetic ear when elections roll around. Again, help them all find a new job. This will let the next group know what their future is for them also.

By the way, I realize that government leeches from private business and individuals and I suggest in no way that it’s up to the government to be our “savior”. The government is supposed to be “for the people, by the people” not “for themselves”.

By the way, great commentaries posted by many of you!

So, am I “worried about a recession”? Nope, worry will get you nowhere, but I am cutting back on spending to prepare for a tough future.

By ndependent

January 12, 2008 8:43 AM | Link to this

Years ago I decided if you want something in life, you get it yourself. I have been through the country’s good and bad economic cycles, failed business (no fault of mine) and everything but (Thank God) health issues. I work from home, made over six figures in 07 and will double that in 08. I basically ignore that which does not concern me and use my brain instead of my mouth. We are already in a recession but no one in power will admit it. Just take care of your family and work like hell and you’ll get through it like you have for so many years.

By tmjm3714

January 12, 2008 8:52 AM | Link to this

Am I worried about a reccession? Yes and no. I feel, like many posters here have pointed out, it is a self-fufilling prophecy. Unfortunatly, the factors leading to the reccession have already played out, with consumers way overspending in the housing market and with credit cards. The fact that a $.5 change in the price of gas causes mass hysteria doesn’t help either. We will go into a reccession because, like always, the vast majority of Americans will overreact to the “news” they’re fed and cease spending altogether. But don’t fear, we can always fix this reccession the way the Great Depression was fixed…

What I’m more concerned about is the fact that the US dollar is sinking faster than the Titanic, and there is only one presidential canidate that is even willing to publicy state that fact (even though we Americans have already accepted this fact) and formulate a plan to fix it. The GOP, except for the aformentioned canidate, refuses to even acknowledge that any of this is happeneing, and the Democrates want to borrow more money from foreign sources to throw at it. Watching the canidate debates is a truly eye-opening and downright scary experience, I highly reccomend it.

Think long and hard about who you support this election year. Thre are more inportant issues on the table than whether or not your canidate shares your religious views.

By Alecia

January 12, 2008 1:45 PM | Link to this

I grew up during a recession, and my parents did very well because they owned businesses that thrived in hard times. They owned a pawn shop, flea market, gun shop, and traded gold. However, I have always been a tightwad and my spending can’t be any less. My rental properties are seeing a higher occupancy rate and better tenants, because not everyone can buy a house. This is putting more money in my pocket. On the subject of the credit cards, it is cool if you can take cash out @ 0% for 12 months and place it in a CD yielding 4%.

By Mike In Woodstock

January 12, 2008 2:00 PM | Link to this

Anybody wanna bet that when Hillary or Obama is sworn in that the media at large will do a 180 and start only publishing positive reports about the economy?

By Kat

January 12, 2008 11:15 PM | Link to this

From the dictionary: the state of the economy declines; a widespread decline in the GDP and employment and trade lasting from six months to a year.

By Political Christmas

January 12, 2008 11:35 PM | Link to this

It tends to happen in the last year of any of the recent presidencies.

By ron

January 13, 2008 1:25 AM | Link to this

The U.S.median wage is declining.Adjusted for inflation,the median wage has declined about 13% in the past few years.Individuals discretionary funds are down.For the lower half of the median there is no money left over after essentials are paid.Consumer debt in the U.S.may be at saturation point.The housing market is in a steep decline.The price of oil will continue to rise.Unemployment figures are rising.The value of the U.S. dollar is declining.How would you like to see oil priced in Euros instead of U.S. dollars?That could happen.Right now I have no debt and I purchase only what I eat.Next year’s fuel will be delivered in 8’ lenghts at $130 a cord,as per usual.Last fall I purchased 100 gallons of fuel oil and what I have left is worth more than I paid for it.This may not be a recession,but you can sure see a recession from here.Oh,Yes,Bush is proposing tax cuts to stimulate the economy.If they work as usual,the effects here will not be noticed.

By Judy

January 13, 2008 10:13 AM | Link to this

We wonder why the government can work more cohesively to reduce spending, keep our economy strong, etc. I clicked on this blog for ways to reduce spending not a rant on whose fault it is or nasty comments to one another.

We aren’t teenagers! We are adults trying to do the best we can for our families and ourselves. Stop placing blame and let’s try and work together for a solution.

By Michael

January 13, 2008 10:35 AM | Link to this

Broke? That’s what credit cards are for. Then you file bankruptcy on the back end. Enjoy.

By ron

January 13, 2008 1:28 PM | Link to this

Judy,Ways to save money: 1-stay hame more. 2-switch to compact fluorescent bulbs 3-Use a clothesline instead of a dryer 4-no smoking or alcohol 5-cut your waterheater temperature to 120 degrees. 6-stay out of restaurants 7-if there is a balance on your credit card,cut it up until it’s paid off.Then try again with a zero monthly balance as the only acceptable balance. 8-Buy the bulk of your clothes at a second hand shop. 9-Make your own bread. 10-Drink only water 11-stay out of coffee shops 12-disconnect your cable tv 13-Pay your bank account a set amount each week.Pay it before you pay anything else.Start small,increase as you can.PAY IT FIRST AND LEAVE IT ALONE.

By Economist

January 13, 2008 1:45 PM | Link to this

J, You’ve got to be kidding me. Stock market broke a record at 14,000???? Do you know what it was when Clinton left office? It was at 12,000. That means, over EIGHT YEARS, the DOW actually lost money after factoring in inflation! If you invested $10,000 when Clinton left office, you would have less spending power today (actually, a lot less since the DOW is well below 14,000 today).

Lance, double-digit growth in the last 8 years? Riiiiight. The only argument for growth is if you start the clock on the day after 9/11 when the DOW fell to 7,000. Unemployment is higher than it was in the 90s, our national deficit is the highest it’s ever been, the international trade gap is higher than it’s ever been, the stock market has lost money after considering inflation, etc., etc. What growth are you referring to? Some of you need to pull out the Almanac and it becomes very clear that over the past 100 years, the economy is always better under Democrats.

By Steve

January 13, 2008 5:41 PM | Link to this

I have not cut back in my spending in the least. In the past 6 weeks i have bought four dress shirts at nieman marucs totalling over $1700.00 bucks. As long as i have money that i’ve earned i’ll spend it like i want to.

By Lucille Willoughby

January 13, 2008 8:05 PM | Link to this

What do you mean “heading into a recession”. We’re IN a recession already! No one’s got the balls to call it what it is, is all.

By Michael

January 13, 2008 9:22 PM | Link to this

FACT: The economy is doing great. It is growing at about 4 to 5 %. No where close to a recession. I don’t agree with all of Bush’s decisions but this story has no legs.

By FCM

January 15, 2008 5:15 PM | Link to this

@ Mary—-if you get the Child Support you will be tempted to do the things you have had to deny yourself….Trust me I know. However, remember the frugal lessons you are learning now….save that Child Support (as much as you can) if/when it starts coming in….because it is likely to disappear again. (wanna ask how I know? Fortunately we are in a Child Support is here (thanks to Bush’s war) time—so despite knocking out a ton of debt and few treats (we got cable and a movie membership-woo hoo) I am only just now (6 months back to having support) at point where I can take my own advice and pay the saving account.