Is the economic crisis affecting you?

kaci_beeler · Post by **kaci_beeler** » October 7th, 2008, 2:56 am

I own nothing of high value, really. I have no investments. I have no outstanding debt.
I'm not sure how this is going to affect me, besides the fact that I'll be out in the "job market" in half a year or so.
If it continues to get worse I assume we'll all be affected in some way or another, but I'm glad it's this and not a disease that is spreading. Ya know, like the Black Death.
It could always be worse.

Post by **Jon Bolden** » October 7th, 2008, 9:27 am

My parents are from Ohio and it is REALLY affecting that area according to them. My dad is a car salesman and the lot is virtually empty. Luckily he does more than just selling there. More reason for Ohio to vote for someone who will make a change...hint hint

What about everyone's families from afar? Any stories regarding economy there?

Brian Boyko · Post by **Brian Boyko** » October 7th, 2008, 9:50 am

When my parents came to visit, they gave me two pieces of financial advice:

1) Get a mortgage.
2) Get a 401k.

I did neither and I'm glad I did.

Other than that, my company's been going strong, mostly because IT hasn't been quite so affected by the crisis.

Sadly, I'm less likely to take the risk to fly to NZ this year to do some follow-up filming unless I'm also going for job interviews at the same time, so that's certainly changed.

Post by **bradisntclever** » October 7th, 2008, 1:41 pm

Brian Boyko wrote: 1) Get a mortgage.
2) Get a 401k.

Putting money you have available for the long haul into a 401(k) or a similar investment vehicle ISN'T a bad idea, still. Empirically, the market corrects itself and even comes out stronger on the other side.

Don't throw any money into the market that you can't afford to lose right now. If you do have some left over, then the market can be a solid choice as long as you heed basic principles like dollar-cost averaging and portfolio diversification.

I'm still doing pretty well in the market.

HerrHerr · Post by **HerrHerr** » October 7th, 2008, 2:45 pm

What economic crisis?

nadine · Post by **nadine** » October 7th, 2008, 2:45 pm

So they've been saying if Middle America cuts their spending, then things will get worse before it gets better.

If you asked me a few months ago if I was cutting spending, I'd so no. But now with my 401k looking rather red, and unemployment figures being really high, I'd say yes. I question purchases more now then I use to. Which sucks for the shops I frequent, but good for my financial security.

Marc:
Can your rent your house in the meantime and recoup the mortgage/property tax on that? Maybe short-term lease it on Craig's list, since it's a pretty decent location, if you want to ride out the market. Otherwise you may have to lower the price, or wait longer.

mpbrockman · Post by **mpbrockman** » October 8th, 2008, 5:03 pm

I have no major investments, don't own anything (outside of some rather expensive gear and a vehicle) that has significant value, and I rent. I also work in a business that is nearly recession proof (in good times, I have more advertising work - in down times, live work picks up).

In short, no.

Like Boyko, every piece of advice my folks ever gave me would have had me in a worse position than I am now.

I haven't bought a house.
I haven't got a 401K.
I'm still a f**kin musician.
I carry no debt whatsoever (I've got one credit card I keep in a desk drawer and rarely use).

So all I have to worry about is the roof over my head, something to eat and keeping the lights on. I like simple.

Jessica · Post by **Jessica** » October 9th, 2008, 9:16 am

We've been on the list for a Mueller house for over a year. It is finally being built and we are selling our current house to make the down payment. We just found out yesterday that - even though we will be putting down a 50% down payment - they may not give us a mortgage. We do not have a standard income and they are making new rules every single day tightening up who can and can not buy a house. This is even though we've been making a higher payment for the last 5 years with absolutely no problem or a single late payment. That makes me sad.

nadine · Post by **nadine** » October 9th, 2008, 1:49 pm

That is ridiculous, maybe it's one of the affected banks?
I bet another bank will give you a mortgage as long as you've good credit rating.

Jessica · Post by **Jessica** » October 9th, 2008, 3:42 pm

Yeah, JP Morgan bought our bank and they are not as flexible. So now we have to look at other options, including as you said other banks. But most of them don't like unusual income, despite our excellent credit rating. It may still all work out-there is always the bank of mom, but her interest rates are emotional and that is a real bitch to deal with. Still, I'm more optimistic now than I was when I heard the news. But I have to say that I'm pretty pissed that the banks get a bail out when they totally F***ed up, and I'm doing everything right and I get shafted. Keep your fingers crossed for me please!

sara farr · Post by **sara farr** » October 9th, 2008, 5:34 pm

I think my retirement savings may be gone. ACC held a big meeting to address this but I couldn't go. I should probably call HR but I'm scared to.

kbadr · Post by **kbadr** » October 9th, 2008, 5:35 pm

sara_anm8r wrote:I think my retirement savings may be gone. ACC held a big meeting to address this but I couldn't go. I should probably call HR but I'm scared to.

It won't be "gone", it'll just be too little to work with. Just leave it where it is and wait it out. Seriously.

valetoile · Post by **valetoile** » October 9th, 2008, 6:20 pm

my business has been affected by rising gold prices, and we were expecting a down turn, but surprisingly, we seem to be in a really busy period right now- having to hire on extra help to get all the work done in time. Though it is leading in to our busiest time of year. I'm surprised so many people are still buying jewelry, though I guess if it's gold, it's not going to lose value.

The Drewd · Post by **The Drewd** » October 9th, 2008, 6:27 pm

How I'm affected is these psychological hammer blows day after day of seeing major drops in the market, even when the government steps in to take action the slide continues. The market drops even when there isn't any negative news to spur it, it just goes down relentlessly. It makes me reluctant to even look at the web and depressed about the future in general. It's pretty clear that the next president will be Obama but I have no confidence in him to do much better at stabilizing the market and enabling a recovery than the Repubs have.

The Drewd · Post by **The Drewd** » October 9th, 2008, 6:29 pm

I'm just happy when I see the DOW is "only" down double digits, these triple digit one day drops just make me worried for the rest of the day. Somebody in apt my parking lot dented my rear bumper and it now rubs against the tire when I go over a pothole, and paying for a major repair just seems like a much bigger deal right now. Worrying about the future impacts my perception of weekly expenses significantly.