It's pretty much go-time now

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
So Microsoft did can their people (5k or something), but the banks are again on the precipice. My advice is: don't buy anything you don't need, if your boss makes sexual advances on you don't turn him away, etc. It's a good time to have a job and not lose it and it's a good time to have something in your savings instead of a mountain of debt.

My link for this is Yahoo Finance

Stock market is again under 8k, oil is dying because inventories are up high.

I know January is, along with December, the most popular time for layoffs, fwiw.
 

Genx87

Lifer
Apr 8, 2002
41,095
513
126
It looks bad but not the worst we have seen. Anybody remember when Reagan took office? 7.5% unemployment with double digit interest rates and high inflation. That unemployment hit 10.3% in about 82 I believe.
 

RichardE

Banned
Dec 31, 2005
10,246
2
0
Originally posted by: Genx87
It looks bad but not the worst we have seen. Anybody remember when Reagan took office? 7.5% unemployment with double digit interest rates and high inflation. That unemployment hit 10.3% in about 82 I believe.

Still, good advice to heed before it does get to that point.
 

daniel49

Diamond Member
Jan 8, 2005
4,814
0
71
I'm optamistic.
Not because of any indicator, but to not be so is to feed the frenzy.
Personal Savings and avoidance of personal debt is always good family ecomomics.
Economy is definatly troubled, but this also shall pass.
 

Xavier434

Lifer
Oct 14, 2002
10,377
1
0
Originally posted by: Skoorb
don't buy anything you don't need

I disagree. Buy whatever you want without fear as long as you can afford it. Just don't be irresponsible about it. People not buying stuff is the problem. I personally plan to buy a home very soon so I'll be contributing my part.
 

CPA

Elite Member
Nov 19, 2001
30,322
4
0
Originally posted by: daniel49
I'm optamistic.
Not because of any indicator, but to not be so is to feed the frenzy.
Personal Savings and avoidance of personal debt is always good family ecomomics.
Economy is definatly troubled, but this also shall pass.

I agree, if nothing this is going to bring a fundamental change in how we live our day to day lives....that is, until we forget how bad it got
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
I agree, if nothing this is going to bring a fundamental change in how we live our day to day lives....that is, until we forget how bad it got
Maybe our kids will be oblivious to it and turn into impulsive slaves to materials like we are!
 

BoberFett

Lifer
Oct 9, 1999
37,563
9
81
Originally posted by: Skoorb
it's a good time to have something in your savings instead of a mountain of debt.

That depends. If you're of the mind that the only way the government will fix anything now is to inflate our way out of debt, it's a great time to jump on low rates. If you're paying 5% when inflation is at 10%, you're just making money.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
That's true, too, but I'm more interested in keeping my head down than going for glory and getting a medal at this point ;)
 

ayabe

Diamond Member
Aug 10, 2005
7,449
0
0
Originally posted by: Genx87
It looks bad but not the worst we have seen. Anybody remember when Reagan took office? 7.5% unemployment with double digit interest rates and high inflation. That unemployment hit 10.3% in about 82 I believe.

Yeah but I think that took a bit longer to get that bad.

The scary thing about the current situation is that it's only taken a few months and we seem to be accelerating downward rather than stabilizing.

For instance, we haven't even begun to feel the pain from the poor holiday sales in the retail sector, who knows how many more jobs will be shed in the next 3 months...we could easily eclipse that 10.3% number.
 

WackyDan

Diamond Member
Jan 26, 2004
4,794
68
91
Meh.... I've doubled my 401k contribution when the market hit mid 8k's. I also moved a large amount from my stable fund selection to a higher risk Vanguard fund.

We have no debt in our house except for the mortgage. We have a significant "emergency fund" just in case I lose my job.

I'm making the healthy bet on a great return 2.5 to 3 years from now... The longer the market stays stagnant, the better for people like me who have re-allocated their 401k's correctly and put more in at the same time.
 

RU482

Lifer
Apr 9, 2000
12,689
3
81
Originally posted by: Genx87
It looks bad but not the worst we have seen. Anybody remember when Reagan took office? 7.5% unemployment with double digit interest rates and high inflation. That unemployment hit 10.3% in about 82 I believe.

also put into perspective how many more undocumented illegal workers are here now (yeah yeah yeah, the jobs no one wants...until they are eating shit sammwiches after 6 months of no employment.)

I say our current unemployment percentage is artificially low because of this
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Originally posted by: WackyDan
Meh.... I've doubled my 401k contribution when the market hit mid 8k's. I also moved a large amount from my stable fund selection to a higher risk Vanguard fund.

We have no debt in our house except for the mortgage. We have a significant "emergency fund" just in case I lose my job.

I'm making the healthy bet on a great return 2.5 to 3 years from now... The longer the market stays stagnant, the better for people like me who have re-allocated their 401k's correctly and put more in at the same time.
I am still buying all stocks. Yes, it's fine and dandy if we stay employed...
 

bamacre

Lifer
Jul 1, 2004
21,030
2
61
Originally posted by: BoberFett
Originally posted by: Skoorb
it's a good time to have something in your savings instead of a mountain of debt.

That depends. If you're of the mind that the only way the government will fix anything now is to inflate our way out of debt, it's a great time to jump on low rates. If you're paying 5% when inflation is at 10%, you're just making money.

Exactly. And people wonder why the banks aren't loaning.
 

Xavier434

Lifer
Oct 14, 2002
10,377
1
0
Originally posted by: bamacre
Originally posted by: BoberFett
Originally posted by: Skoorb
it's a good time to have something in your savings instead of a mountain of debt.

That depends. If you're of the mind that the only way the government will fix anything now is to inflate our way out of debt, it's a great time to jump on low rates. If you're paying 5% when inflation is at 10%, you're just making money.

Exactly. And people wonder why the banks aren't loaning.

The banks are loaning again. They are just being much more strict about credit now. I have been speaking to my father extensively about this. Part of the reason for "some" of the banks is bailout money which they have applied for and received. He has been in the banking business for over 30 years and explained it to me. In addition, I am going for a mortgage loan myself right now and things are looking great because I have good credit and what I am wanting to buy is not out of my price range. Isn't this what we want the banks to do? Loan tons of money to the fiscally responsible and be cautious about those who are at much higher risk of not paying it back?
 

BoberFett

Lifer
Oct 9, 1999
37,563
9
81
Originally posted by: bamacre
Originally posted by: BoberFett
Originally posted by: Skoorb
it's a good time to have something in your savings instead of a mountain of debt.

That depends. If you're of the mind that the only way the government will fix anything now is to inflate our way out of debt, it's a great time to jump on low rates. If you're paying 5% when inflation is at 10%, you're just making money.

Exactly. And people wonder why the banks aren't loaning.

That's why I'm trying to buy a house right now. :)

I'm in a terrible position at the moment. The wife and I own a small house which isn't worth much and make a pretty good salary. Without the mortgage interest deduction we're going to get nailed on taxes when taxes inevitably go up (middle class tax cut? yeah right) and if you're going to borrow money now is the time to do it. I see no alternative but massive inflation. The numbers they're throwing around about stimulus in the trillions per year will have a predictable affect.

Worst case scenario, I lose my job and Obama pays my mortgage. ;)
 

ericlp

Diamond Member
Dec 24, 2000
6,133
219
106
Originally posted by: Xavier434
Originally posted by: Skoorb
don't buy anything you don't need

I disagree. Buy whatever you want without fear as long as you can afford it. Just don't be irresponsible about it. People not buying stuff is the problem. I personally plan to buy a home very soon so I'll be contributing my part.

Well, unless your home is 8K or less, that would be a VERY bad move. The games, over and the rig is up.... It's only a matter of time now.

 

IronWing

No Lifer
Jul 20, 2001
68,847
26,626
136
Originally posted by: ericlp

Well, unless your home is 8K or less, that would be a VERY bad move. The games, over and the rig is up.... It's only a matter of time now.

jig
 

PingSpike

Lifer
Feb 25, 2004
21,729
559
126
Originally posted by: Xavier434
Originally posted by: Skoorb
don't buy anything you don't need

I disagree. Buy whatever you want without fear as long as you can afford it. Just don't be irresponsible about it. People not buying stuff is the problem. I personally plan to buy a home very soon so I'll be contributing my part.

Thanks for the help on the economy. *continues to hoard, scrimp and save*
 

SagaLore

Elite Member
Dec 18, 2001
24,037
21
81
The best thing that anyone can do for the economy is to pay off debt.

With too much debt, we're just paying interest, which could have been money spent on goods and services. Initially purchases would be at a stand still, but once the debt was down, people would have a lot more cash flow for stuff.
 

wwswimming

Banned
Jan 21, 2006
3,702
1
0
Originally posted by: SkoorbMy advice is: don't buy anything you don't need, if your boss makes sexual advances on you don't turn him away, etc.

even if you're a guy ?! ICK !
 

Zebo

Elite Member
Jul 29, 2001
39,398
19
81
Originally posted by: Skoorb
if your boss makes sexual advances on you don't turn him away.

:D Good stuff Skoorb.


There are also three more huge busts about to happen. Commercial real estate and Alt-a which will cost trillions. And finally, the end, the treasury notes being called in once they realize how worthless they are becoming with the printing presses running at full speed! We are so fucked you have no clue. I suggest a warm sleeping bag , a ruger 22 and a extensive survival kit.

Obama won't help at all since he is basically a smarter Black Bush. Read it all. PCR has been right all along for years now.
The growth of debt has outpaced the growth of real output. Yet, the solution offered by Obama?s economic team is to expand debt further. This is not surprising as Obama?s economic team consists of the very people who brought on the debt crisis. Now they are going to make it worse............


There are more intelligent ways to try to escape from the current crisis. However, the financial gangsters and their shills that Obama has put in charge of economic policy are thinking only of their own interest. What happens to the American people is not a concern.

A compassionate government would handle the crisis in this way:

Text
 

Maetryx

Diamond Member
Jan 18, 2001
4,849
1
81
Originally posted by: Zebo
Originally posted by: Skoorb
if your boss makes sexual advances on you don't turn him away.

:D Good stuff Skoorb.


There are also three more huge busts about to happen. Commercial real estate and Alt-a which will cost trillions. And finally, the end, the treasury notes being called in once they realize how worthless they are becoming with the printing presses running at full speed! We are so fucked you have no clue. I suggest a warm sleeping bag , a ruger 22 and a extensive survival kit.

Dang, Zebo! I'm a pessimist/bear on the economy, but I'm not thinking we should "run to the hills." Our economy has to contract until the excess capacity is worked out of the system. Our lifestyles have to match our incomes. The correction may overshoot these necessities, as the fear of spending slows things down more than analytically required. But I have pretty good faith in the American consumer re-emerging to buy 7th generation ipods, OLED monitors and HD on demand Heroes Season 5.
 

Painman

Diamond Member
Feb 27, 2000
3,805
29
86
Well, if there was ever a great time to be out of a job, the deep of winter would qualify... none of that getting up @ 5 AM to shovel out your car horsecrap.

...Oh, and the OP plays too much Fallout 3, though maybe I'm projecting a little.