Dear recession:

[KirstenB]

Richmond has been a mixture IMHO. Housing prices are down, and some major jobs have left the area. At the same time, our chi-chi mall parking lot was full when I was there last week.

FIL, who lives in Va Beach, and is extremely conservative (career Marine), and in his 60's, sold his entire portfolio last month. I was shocked. I think it was sensible in hindsight, but knowing him, it took a lot to cash out every investment. That actually scared me worse than any headline I've read. He's 67, the same age as my parents, and he's still working. He drives me crazy in more ways than I can describe, but I think he's sensible financially. My parents aren't in the best shape financially, and I wish they would go back to work (or sell their house and live with us). We'll be fine, but I genuinely feel for anyone who's retired and trying to live on hard-earned investments.

 

[tar heel]

You know, my DH and I are in our 50s and this is the first time we've ever had any recession/job worries whatsoever. Past difficulties really didn't apply to us b/c our jobs were secure and we had years for our investments to come back. This time around, though, we've lost a year's salary on paper in our investments and the company DH has worked for 22 years has done its first layoffs in history followed three months later by its second layoffs in history. We live in a heavily Wachovia exec neighborhood -- you can imagine how secure those folks feel.

I hope when I was in the situation of not being affected by a recession that I wasn't so ignorant and crass that I said asinine nonsense like the OP on this thread and a couple of his/her cohorts.

You know there was a crazy guy on here a couple months ago claiming there was no recession. He's disappeared, or has he?

 

[#1hockeymom]

I believe the same poster has posted this same type of thread a number of times.

 

[PatriciaH]

Please do tell, how do you not let global economic conditions touch your neighborhood?

He is using the secret

I am all for the power of positive thinking and am a pretty positive person in general, but this economy is pretty crappy right now. My best friend from college (in NJ) just told me today that she will probably be laid off next week. Her DH has been out of work for a long time. They will loose their home in 2 months if it happens. They have a 2 year old and are scared. DH and I have been looking for good, full time work for 4 years here in Florida. Everything is contract and you are lucky to get temp/contract work at decent pay. Lots of break ins (houses and cars) here in Celebration. Disney is hurting.

Restaurants and stores are still busy because most people are living on credit. After this Christmas when the credit starts to runs out, it is going to be very, very bad.

 

[sahd2one]

I just find it interesting that basically the rest of the country didn't give a darn when we (TX/LA) were dying in the 80s. And now there seems to be resentment that we are getting by (not necessarily soaring) now.

Absolutely. No one seemed to care when Oil was $12-$14 a barrel and thousands upon thousands were put out of work and on the streets.

I do not live in a market that was speculative yet there are high numbers of foreclosures in my state. However, we apparently are insensitive to point out that our local banks are still lending, new businesses are starting and people are still shopping and eating out at dinner.

The market is changing, but the building contractors have turned into remodeling contractors. There is work for those who want it!

People are driven to fear based on the media I fully believe. I was talking with members of one of my weekly groups about the theory that the depression and 25 year recovery would have been worse and lasted longer if there had been 24 hour media.

I do not expect to find work or lose it because of who is in the White House. Those that do are living in fantasy land, IMHO.

 

[rparmfamily]

I believe the same poster has posted this same type of thread a number of times.

Yes.

Or how high American's credit card bills are but yet at his mall it's busy...apparently he's missing the connection LOL.

 

[sahd2one]

Please do tell, how do you not let global economic conditions touch your neighborhood?

Because I know that my local economy is not the global economy. Never once have I said there were not hard times elsewhere. This thread was totally meant to show that not every where is having a hard time.

Listen the media likes to shout from the mountaintops about how bad it is every where and that Wall Street is BURNING. I see nothing wrong with talking about a recession in which I and several local residents refuse to participate.

I see opportunity where others see adversity. I think of what my mama always said about life never being easy or fair.

 

[allison443]

OP, do you have retirement accounts or college savings accounts that have not been affected by the current economic climate? If so, what are they invested in? Inquiring minds want to know!
TIA!

 

[JennaTX]

Try Texas. Doing great here.



Are you serious? "Good so far"? We have a huge shortage in our Houston office as the employees are all getting offered even more money elsewhere. The economy in Houston is very good.

Wow what office do you have in Houston that has a huge shortage???

 

[jobhunter]

I know and there are some people who just want to rain on your parade and try to bring you down with their own misery.

I truly believe we all have the power to change the outcome of our environment purely by our reaction to it. I get call after call and letter after letter offering me credit or to open a line of credit for my business.

It was again full parking lots at all of the local restaurants tonight. Yes we have foreclosures but there have always been foreclosures. Our economy is so resilient it is not even funny.

We have survived SARS, Bird-Flu, Terrorist attacks, 87 crash, tech bubble burst, Y2K scares and we are still in such good shape.

I and many others won't accumulate wealth as quickly, but I am in this for the long term. I don't see those soup lines forming any time soon!

We are not touched by the recession here yet. That is, we as a family. However, I do not have blinders on and I can see what is going on around me. I know you did not mean this to sound as unkind as it did. To put it into context, you are essentially saying that those who are worried or troubled about their very real problems are just trying to bring others down with their misery rather than just needing to tell how it is where they are?
Wow.
That would be like me saying that you are bragging or gloating rather than trying to keep a positive attitude.
Really uncalled for, IMO.

 

[Bobbles]

Apparently one of the side effects of the OPs "Happy Pills" is an intense hatred for the media.

Anyone else have the same problem? And which side of the political fence do you lean on?

 

[sahd2one]

OP, do you have retirement accounts or college savings accounts that have not been affected by the current economic climate? If so, what are they invested in? Inquiring minds want to know!
TIA!

Wife's retirement account is down about 12%. My targeted retirement fund is down about 15%. We are heavily diversified across good growth stock mutual funds, international funds and a small percentage in bonds. DD's fund is down about 2%.

I see huge opportunities through dollar cost averaging to get into the market. I am an investor not a speculator. I expect over time my funds to grow at about 12% a year over the life of the fund. Some years will be much less, some will be much more.

I was taught to save like I was going to live forever and live like I was going to die tomorrow. My wife and I have always lived on 75% of our income. We tithe 10% of our time and "first fruits" to our Heavenly Father but do not expect salvation because of it. We then invest 15% of the rest across a wide range of "baskets". We pay cash for almost everything.

I support legislation to end the basis of interest rates and insurances rates and employment based on credit scores. If you saw mine, you would think I have zero credit...it is very low.

As was brought up in this thread at the beginning, if we bring up that we are doing well, we are "bragging" or "have our head in the sand" because we are reporting there are areas of the country not touched by this "crisis". We are told not "yet" and "it is coming". Some of us do not feel that way and we are telling the recession to keep on moving past us that we are and will be doing just fine.

I

 

[dvcgirl]

Wife's retirement account is down about 12%. My targeted retirement fund is down about 15%. We are heavily diversified across good growth stock mutual funds, international funds and a small percentage in bonds. DD's fund is down about 2%.
I

Which targeted retirement fund are in that is down just 15% over the past year?

I only ask because one of the funds that I was in and got out of a year ago was the Fidelity Freedom 2030 fund. I sold at $17.55 last November. It closed yesterday at $9.35. Down nearly 47% in one year.

The T.Rowe Price fund 2030 fund is down just as much over the past year. Even the more conservative Vanguard 2020 fund is down 30% over the past year. And the ultra conservative Vanguard 2010 is down 27%.

 

[Kathi OD]

Wife's retirement account is down about 12%. My targeted retirement fund is down about 15%. We are heavily diversified across good growth stock mutual funds, international funds and a small percentage in bonds. DD's fund is down about 2%.

I see huge opportunities through dollar cost averaging to get into the market. I am an investor not a speculator. I expect over time my funds to grow at about 12% a year over the life of the fund. Some years will be much less, some will be much more.

I was taught to save like I was going to live forever and live like I was going to die tomorrow. My wife and I have always lived on 75% of our income. We tithe 10% of our time and "first fruits" to our Heavenly Father but do not expect salvation because of it. We then invest 15% of the rest across a wide range of "baskets". We pay cash for almost everything.

I support legislation to end the basis of interest rates and insurances rates and employment based on credit scores. If you saw mine, you would think I have zero credit...it is very low.

As was brought up in this thread at the beginning, if we bring up that we are doing well, we are "bragging" or "have our head in the sand" because we are reporting there are areas of the country not touched by this "crisis". We are told not "yet" and "it is coming". Some of us do not feel that way and we are telling the recession to keep on moving past us that we are and will be doing just fine.

I

Personally, I don't feel as though you or anyone else on this thread who is reporting a good local economy is bragging or has their heads in the sand. Reporting what you are personally seeing in your area isn't bragging.

Some of what you say is true. There are things that you can do that will a family to weather a recessionary trend better than some others. Saving as much as possible, living well-below your means and not relying on credit cards for daily living is one way to prepare for bad times. The media does sensationalize bad news. DH's 401 is down 30% since July. That sounds bad, but over the long term, it's up about 8%. My 403 is not doing nearly as well, but over the long term it's still in the positive.

However, believing that you can avoid a recession solely with a positive attitude is nonsense. It's hard to have a positive attitude when you've lost your job and after months there still aren't any leads for a new one. You just happen to be lucky enough to live in an area where things are still good. I would think that instead of telling others if they had a more positive attitude the economy would be better, you would be saying how grateful you are that you don't face the same problems.

 

[sahd2one]

I couldn't even begin to count the number of people I've heard in the past four weeks talking about how they're liquidating everything and getting out of the market until it turns around. Or they're not contributing to their 401k again until next year.

Morons.

First of all, people seem to equate the stock market with the economy. They are not the same, people! The Dow Jones Industrial Average is just an index of 30 common stocks. Yep, thirty stocks, that's it. Now, it's certainly an indicator of the economic mood of the country, a gauge, but it is not The Economy. But all of those companies are still making money, and the dividends are still getting paid, and while it's true things have slowed down a bit, the sky is definitely not falling.

The market sucks, that is true. But the economy is fundamentally sound. People are still going to work every day, producing more goods and services than almost the rest of the world combined. Just because the economy is growing slower than we'd like, it's still growing! All these trillions of dollars lost in the stock market are mostly paper losses. All that negative movement in your 401k--you've still got the same number of shares, they're just worth less than they were last year. So what? If you're like me, well, I won't be cashing them for another 20+ years. My outlook is simply that stocks are on sale right now.

Another thing--all those shares that people are dumping and selling off? Somebody is buying them. And those somebodies are gonna be dirty rotten filthy stinking rich when the market turns around. And it always does. Although you can't predict when it will turn around like you can predict what time the sun will rise, you absolutely can say that it will eventually rise. So why not take advantage of the buying opportunity when it presents itself?

 

[arminnie]

As well as there are those who believe they can just "will away" a bad economy with positive thinking. Sadly, it just doesn't work that way.
.......

I'll also again suggest that you should be prepared, just in case, as as you never know when tough times are coming.

No you really cannot "will away" a bad economy. Believe me I would have done so if I could have. But sometimes you do have to "walk away". Just staying and either doing nothing or doing the same thing over and over again expecting different results can make things worse.

If you are waiting for housing prices to come back up - well it could be a long, long wait.

OP, do you have retirement accounts or college savings accounts that have not been affected by the current economic climate? If so, what are they invested in? Inquiring minds want to know!

I am not the OP - but I will answer. I am probably more affected than most of you as I am retired. Yes - I've taken a HUGE, HUGE, GINORMOUS hit in my retirement funds. But I also have enough in cash that I do not have to sell. I can easily live 5 years w/o touching the stocks unless I want to.

And if I truly lost it all my social security alone would pay for me to live in a LUXURY 1BR retirement apartment with all meals, transportation and utilities paid for. That's a worst case scenario.

I am choosing to look at the cup as half full instead of half empty.

 

[Kathi OD]

I couldn't even begin to count the number of people I've heard in the past four weeks talking about how they're liquidating everything and getting out of the market until it turns around. Or they're not contributing to their 401k again until next year.

Morons.

Well, since DH is laid off, he can't contribute to his 401. How I wish he could. Sadly, because he is laid off, we need the cash we would normally use to invest for bills. I also see opportunity in the current market.

The market sucks, that is true. But the economy is fundamentally sound. People are still going to work every day, producing more goods and services than almost the rest of the world combined. Just because the economy is growing slower than we'd like, it's still growing! All these trillions of dollars lost in the stock market are mostly paper losses. All that negative movement in your 401k--you've still got the same number of shares, they're just worth less than they were last year. So what? If you're like me, well, I won't be cashing them for another 20+ years. My outlook is simply that stocks are on sale right now.

Agreed. The market does suck. But, no, the economy around the nation is NOT fundamentally sound. While some people are going to work every day, many others are no longer doing so. Personally, we've seen a drop in our household income of over $9000/month. That's not chump change. Don't tell me that loss is only a paper loss. There are many like us, maybe not in your neighborhood, but definitely in other parts of the country. And sadly, not everyone has 20+ years to make up the paper losses they do have.

Another thing--all those shares that people are dumping and selling off? Somebody is buying them. And those somebodies are gonna be dirty rotten filthy stinking rich when the market turns around. And it always does. Although you can't predict when it will turn around like you can predict what time the sun will rise, you absolutely can say that it will eventually rise. So why not take advantage of the buying opportunity when it presents itself?

Well, if we had the extra money to take advantage we would, but as I said, with a monthly loss of $9000, we just don't have the extra cash to invest.

Be grateful that you're in good shape. Not everyone is...not even close.

 

[dvcgirl]

I couldn't even begin to count the number of people I've heard in the past four weeks talking about how they're liquidating everything and getting out of the market until it turns around. Or they're not contributing to their 401k again until next year.

Morons.

First of all, people seem to equate the stock market with the economy. They are not the same, people! The Dow Jones Industrial Average is just an index of 30 common stocks. Yep, thirty stocks, that's it. Now, it's certainly an indicator of the economic mood of the country, a gauge, but it is not The Economy. But all of those companies are still making money, and the dividends are still getting paid, and while it's true things have slowed down a bit, the sky is definitely not falling.

The market sucks, that is true. But the economy is fundamentally sound. People are still going to work every day, producing more goods and services than almost the rest of the world combined. Just because the economy is growing slower than we'd like, it's still growing! All these trillions of dollars lost in the stock market are mostly paper losses. All that negative movement in your 401k--you've still got the same number of shares, they're just worth less than they were last year. So what? If you're like me, well, I won't be cashing them for another 20+ years. My outlook is simply that stocks are on sale right now.

Another thing--all those shares that people are dumping and selling off? Somebody is buying them. And those somebodies are gonna be dirty rotten filthy stinking rich when the market turns around. And it always does. Although you can't predict when it will turn around like you can predict what time the sun will rise, you absolutely can say that it will eventually rise. So why not take advantage of the buying opportunity when it presents itself?

The Dow Jones Industrial Average is 30 stocks...it's down 37% over the last year. The S&P 500 is a much better indicator....it's down 41%. What's your point? The international markets have been positively crushed. So what funds are you in again that are only down 12%-15%? Seriously, I'd love to know.

Listen, I understand what you're saying. Clearly you're a Dave Ramsey fan....I can tell by your phrasing. I think it's great to be positive and live beneath your means and save as much as you can. But to say that the recession isn't affecting you....and that your portfolio is only down 12-15% in the types of accounts you listed. Well, either you're not keeping up with your statements or you're not being honest with yourself, or us for that matter.

Also, I would listen to Ramsey to stay motivated and to stay out of debt, but don't follow his investment advice. That's not his forte....and don't rely on that 12% return number as we're not likely to get that.

 

[DoeWDW]

Count me in as a "glass half full" type. I'm in the stock market for the long term. My house won't be sold for many years, so it doesn't really matter how much it's worth now. I chose to work in a government job many years ago because of the security of the job and the security of my pension and benefits.

I think life is what you make it. Yes, sometimes people get a bad break through no fault of their own, but more often, good decisions are rewarded.

Restaurants and stores in my area are chock full of people. I don't think the economy is as bad IN MY AREA as the media seems to be portraying.

 

[Colleen27]

Because I know that my local economy is not the global economy. Never once have I said there were not hard times elsewhere. This thread was totally meant to show that not every where is having a hard time.

Listen the media likes to shout from the mountaintops about how bad it is every where and that Wall Street is BURNING. I see nothing wrong with talking about a recession in which I and several local residents refuse to participate.

I see opportunity where others see adversity. I think of what my mama always said about life never being easy or fair.

I suspect that if we were having this conversation face-to-face, we'd be agreeing more than disagreeing, but it is hard to gauge tone in online postings and some of your comments did come across as gloating.

I know not every one is having a hard time. Even here, where things really do suck (Detroit area, Michigan), there are those who are in a position to make the most of the situation.

We are feeling the downturn, in that DH's business is slow and we're chipping away at our savings to make ends meet some months, but we're not in dire straits. Even in the worst economy, people need their leaking roof or leaky pipes repaired, so while business is slow and we're patching together a living out of small jobs that we'd have passed on a year or two ago, we know that there will always be *some* work.

In fact, we're among the most fortunate - we have savings, and we have options. We're looking at buying a larger house while the market is weak and prices are low, because we can afford to pay cash. In this market, rent on a 3 bedroom home is considerably more than our mortgage payment, so we'll rent out our current house until the market improves enough that we're willing to sell. It'll be a fixer-upper for sure, but with a DH in construction who isn't working as much as he'd like, we've got the skill and the time to handle that.

I'm probably a bit over-sensitive about optimism in the face of current conditions, though. I don't talk about our house hunt or our plans IRL, because it feels like it would be insensitive at best to talk about buying a foreclosure to improve our long-term position when so many of our friends are close to losing their homes. Sure, there's an upside to a down economy, but that's no consolation to the people who don't know where their families will be living a few months from now, you know?