Dear recession:

[sahd2one]

But you're right, overall the state of Kentucky is having some money troubles of its own.

My state has its own money problems, but much of it has been on going for years. There has been a glut of spending and overspending and the curtain has falling. However it is not because of a recession.

A neighbor has just received a promotion and just moved though his company is laying other folks off.

My DW works for a company that has had layoffs in her years working for the company and yet they continued to hire.

It is a cycle and I for one and many others are not going to let the naysayers and doom and gloomers of the world dictate how I live my life. We will be in a better position because of it.

I also see the cycle as changing what used to be a sellers market has turned into a buyer's market. A seller may lose on the front end but gain because he or she can buy so much more where as before they made big gains on the front end yet they were not able to buy as much on the back.

 

[minnie61650]

<snip>
You know that saying, "A little knowledge is a dangerous thing"? It applies here. You're implying that everyone who just "rode it out" in the Depression stock market came out smelling like a rose. Yes, some people made millions by being in the right place at the right time after the Great Depression -- especially those who chose railroad and utility type stocks, or a few years later those who were involved in war materials. Many, many more lost everything; history tends to praise those who bore the risks and won, while it ignores those who made similar choices and took on simliar risks but rolled the dice the wrong way.<snip>

Well said MrsPete.
I agree. Some people made millions by being in the right place at the right time after the Great Depression --
Those are the ones history will tell us about.

While sometimes an investment in the stockmarket may be a good investment and yeild a good return very few people become millionaires by being in the right place at the right time. How many millionaires were made who invested heavily after the stock market crash of 1987?

First generation millionairs are usually made of hard working indivduals who are able save more than one third of their earnings. The key as MrsPete has pointed out is to DVERSIFY (savings, stocks, bonds, CD's,Insurance policies etc.)
Another key to success is to live below one's means.

Since DH owns his own Muti million business we (DH & I) have a joint
1 million dollar life insurance policy so that when we both pass away hopefully the insurance policy will cover any inheritance taxes our children
may have to pay. One never knows if the government will change the laws that are now in place and we should be prepared.

To the OP:
Since you are a new entrepeneur I would like to suggest that you read the book (If you have not already read it).
The Millionaire Next Door
by Thomas J. Stanley &
Wlliam D. Danko


It is very informative and an interesting read.


Just my 2 cents.

 

[sahd2one]

Actually, one of the foremost rules of investing is DIVERSIFY. By keeping my already-made investments in my previous aggressive funds, and by channeling my new contributions to more conservative choices, I'm doing just what analysts say is best.

I agree that diversification is what is best, but you said the old rules do not apply. I do not agree. I think that you should still be investing the highest percentage (110-your current age) in stocks. They are a bargain right now. It is a mistake to not make any new contributions to stocks, IMHO. I have someone who pulled out of their money of their children's college fund and want to put it in CD's. At 2% earnings, they are not even beating the cost of historial inflation. I think that is just silly.

You know that saying, "A little knowledge is a dangerous thing"? It applies here. You're implying that everyone who just "rode it out" in the Depression stock market came out smelling like a rose.

NO I said that those who invested in the stock market after the great depression made millions. Those who rode it out did in fact get all of their "paper losses" back after 25 years. I am a long way from retirement, though I expect to work until I am physically unable, so I am not panicky. I thought Jim Cramer and his ilk contributed to the panic with their calls of SELL SELL SELL, FIRE SALE!!!

You can't write them off as idiots or losers because they didn't take the right risks at the right time.

Never called them that not once, but thanks for trying to put words in my mouth.

I wish you luck in your business and thank you for not participating in the recession. I am keeping the same steady pace I have always had. I live my life debt free (save for a home mortgage which will be paid off in six more years). We drive eight and twelve year old cars. I don't spend unless I have the cash to do so. But I am still spending. Cash hoarding and not engaging in commerce is what prolonged the great depression.

Is it scary? Sure it is, but life has risks and to do nothing is the biggest risk of all.

 

[momx2]

there are parts of the state that are doing better than the state at large, I think. I know he/she's in Georgetown and I'm in Hardin County, and while I don't think we're in quite as good shape as the Lexington area .. we are preparing for growth here. I think the Governor is counting on it, too.

But you're right, overall the state of Kentucky is having some money troubles of its own.

I live in Bowling Green and nothing much has changed here, on the surface, but dig deeper and you'll see it. Last week I was called by my neighbor, who is a real estate agent. I had looked at a house with her this past spring. DH and I decided not to do it. She was basically cold calling me to see if I might be interested in a trade with the builder because my house is a cheaper house to sell and he has had several houses up for sale for over a year now. I said no of course. My friends that work for Fruit of the Loom all seem a little more worried than normal. Not that they are saying that, but you can sense it. We just had a factory that employed over 300 just go out of business the week before Christmas due to GMAC not extending their fiancing.

When your state might not be able to honor it's employees checks, there are huge problems. Some is excess, but some is also loss of revenue. That revenue is not coming back anytime soon.

I guess my point in posting is to say this....I kind of felt the same way as sahd several months ago. I almost felt untouchable since the state backs my earnings, but things can change in an instant. While I think sahd is correct that the media tends to only post the negative, I don't think I would be bragging about my good financial condition. Sahd's financial condition could change in a blink of any eye, just as anyone's could.

 

[sahd2one]

While I think sahd is correct that the media tends to only post the negative, I don't think I would be bragging about my good financial condition. Sahd's financial condition could change in a blink of any eye, just as anyone's could.

If you take that logic, no one should post about the brag about the birth of a child, or a new marriage. Things could change in a blink of an eye. I don't get what is wrong about posting that we are not participating in the recession.

 

[Carly_Roach]

It is a cycle and I for one and many others are not going to let the naysayers and doom and gloomers of the world dictate how I live my life. We will be in a better position because of it.

Then why, in the name of all that is Holy, don't you live your wonderful life enjoying it to the fullest? Why are you investing so much time and energy trying to convince other people they are wrong and you are right?

BTW, did you ever get the living situation worked out with the in-laws upstairs?

I hope the twins are doing well and are looking forward to their next WDW trip!

 

[madge]

When your state might not be able to honor it's employees checks, there are huge problems. Some is excess, but some is also loss of revenue. That revenue is not coming back anytime soon.

you're absolutely right - look at the last 10 years or so .. the hit the tobacco industry has taken, cutbacks at Ford, I'm sure the coal people are hurting .. all things vital to the state economy. I know that Governor Beshear was banking on the gambling vote to help bring in money for the state, as were cities up and down the Ohio river. With that said, this isn't the first time we've been in a financial bind, either. I don't recall it being as bad as it is now, though.

I guess my point in posting is to say this....I kind of felt the same way as sahd several months ago. I almost felt untouchable since the state backs my earnings, but things can change in an instant. While I think sahd is correct that the media tends to only post the negative, I don't think I would be bragging about my good financial condition. Sahd's financial condition could change in a blink of any eye, just as anyone's could.

he doesn't seem to get that, though... he's choosing not to participate in the recession, so he's exempt from any negativity.

 

[sahd2one]

BTW, did you ever get the living situation worked out with the in-laws upstairs?

I hope the twins are doing well and are looking forward to their next WDW trip!

Um...what twins and what in-laws upstairs? You really have the wrong person here, but you go on and keep on thinking what you want.

 

[ntsammy5]

I hate to agree with you, but even in Buffalo, NY, second only to Detroit in poverty rankings, not everyone has been tremendously affected by the recession. I haven't been and most of my friends haven't been. Could that change? Of course. Will it change? Probably because many are in the financial services industry or directly or indirectly involved in the automotive industry.

Whether we choose to participate or not, is irrelevent - you may not have a say in the matter.

To dwell on the recession is pointless, because it does no one any good. If you can do something to make your situation better, then do it. If not, then, oh well.

 

[GoldieSaysMeep]

Wow. This thread has turned from someone trying to look on the bright side to a fight.

I think the OP was just a message of staying positive, and some people blew it way out of proportion. Unless there is some other history or whatever going on. I think the OP was just the guy staying "hey, I'm looking on the bright side". I don't think he meant to offend anyone in that initial post.

Everyone should just try to calm down and be grateful for what they have. One thought that hit me as I was reading this was...everyone posting here has access to a computer with the internet. So none of you are in that dire of straights. (And no that isn't a personal attack on anyone, just trying to give some perspective.)

I never saw the OP or the people who agree with him calling anyone names or saying anyone chose to lose their job.

 

[arminnie]

And it also ignores completely the fact that many of those who are secure are there by no merit of their own but rather by being born into advantaged circumstances.

I can assure you that I was NOT born into advantaged circumstances - one grandparent was a sharecropper and the other was a coal miner. I went to college under poverty provisions (my parents income was below poverty level).

I don't care how bad someone has it now - I had it at least that bad in Texas in the mid 80s. But guess what I LEARNED from that experience. I had to start all over (from a negative point). I lost HUGE amounts of money on houses, all of my savings, etc. I took a salary cut (after a year of unemployment) at 1/3 of my previous salary.

But I learned NEVER to put myself in that corner again. I lived very frugally to pay off huge amounts of debt and then saved and saved. Yes I've been hit in my savings - but I STILL have enough to live on and live quite well.

I worry that people today will not learn from their experiences. It is insulting to say that those of us who are comfortable were just "born to it".

 

[sahd2one]

For an area feeling the effects of a recession, I am thrilled to have seven ribbon cuttings and two ground breakings to attend this month! My business has completely taken off since the first of this month and I have been more busy in the past two weeks than I was in the past few months.

Take that recession, we are not being drawn in by your siren's call.

 

[edwardsfire]

For an area feeling the effects of a recession, I am thrilled to have seven ribbon cuttings and two ground breakings to attend this month! My business has completely taken off since the first of this month and I have been more busy in the past two weeks than I was in the past few months.

Take that recession, we are not being drawn in by your siren's call.

good for you,
Me and the wife is going mini van shopping on Tuesday.
Im leaning to a Honda Odyssey...Same as we have now.
But she likes the Toyota Sienna, Both are american made.
Also, we are getting ready to remodel our bathroom.
I love capitalism....

 

[sahd2one]

good for you,
Me and the wife is going mini van shopping on Tuesday.
Im leaning to a Honda Odyssey...Same as i have now.
But she like the Toyota Sienna, Both are american made.
Also, we are getting ready to remodel our bathroom.
I love capitalism....

Clark Howard said that Honda currently has 100 days of inventory. The deals on a new Honda are just incredible, even on Civics and Accords.

I drive a 97 ODY with 186K miles on it. I won't buy a new car ever again. I love having no car payments.

 

[edwardsfire]

Clark Howard said that Honda currently has 100 days of inventory. The deals on a new Honda are just incredible, even on Civics and Accords.

I drive a 97 ODY with 186K miles on it. I won't buy a new car ever again. I love having no car payments.

Yeah, i know.....My payment will be around 388.00 ish....for 4 years.
But, nada or very little interest!

 

[sahd2one]

The latest figures are out in my location and there were more business licenses issued last year than in the year before. Even when you compare December 08 to December 07 there were more year over year.

Take that downturn! Take that recession!

 

[minnie61650]

The latest figures are out in my location and there were more business licenses issued last year than in the year before. Even when you compare December 08 to December 07 there were more year over year.

Take that downturn! Take that recession!

What state do you live in?

 

[Missy1961]

What state do you live in?

You know we won't get an answer to this question, right?

 

[sahd2one]

What state do you live in?

Too many 520 DIS stalkers, so unable to share that. I am just pleased as punch that despite a recession, we are doing quite well. We are not participating.

 

[Free4Life11]

Here in Jacksonville, they just opened a new port! Estimates are that it will create 1600 new jobs. The first ship arrived last week.

Take THAT recession! Also, I've been selling DVD's, books, and video games on Amazon and have made quite a bit recently! Not a profit, but a great way to de-clutter and make some extra $$$ at the same time.

ETA -- I also checked my 401k and I *finally* had a 4% GAIN in December! Of course that doesn't come close to offsetting my losses, but a step in the right direction!