Is the economy really that bad?

[Emimatt]

It's pretty bad for us. My husband has been out of work since April. Add that to rising food prices and it isn't a pretty picture for our family.

 

[Barb]

As a nation we are wealthier than we have ever been. No the economy is not that bad.

Are people suffering: Yes

Are many people suffering as a result of their own doing and reaction to their situation: YES

Stop blaming everyone else and take responsibility for your own situation!

I'm sorry. I guess I should grab everyone off the street and force them to shop in our store. I guess it's our fault they don't want to spend money on non-essentials. Boy, are we stupid! Don't we feel like fools for the mess we put ourselves in. How stupid can we be?? Why didn't we know this 20 years ago when we started our business which had been more than we could have imagined until recently. I need to get tough and not let anyone leave the store without dropping some cash on my counter.

 

[chris1gill]

Hope ya don't have any investments, how many billions will this take, how many billions did Fannie & Freddy take, how many millions did the bank in AZ that went out two weeks ago that had ties to McCain's son cost the taxpayers? Or, the bank of China?


NYT: Nation’s Financial Industry Gripped by Fear

http://www.nytimes.com/glogin?URI=h...2FEQ5BfEQ25Q60Ewpem3oeeEQ25Q60exPooxQ27Sx)Q2B


Fear and greed are the stuff that Wall Street is made of. But inside the great banking houses, those high temples of capitalism, fear came to the fore this weekend.

As Lehman Brothers, one of oldest names on Wall Street, appeared to unravel on Sunday, anxiety over the bank’s fate — and over what might happen next — gripped the nation’s financial industry. By late afternoon, Merrill Lynch, under mounting pressure, entered into talks to sell itself to Bank of America.

Dinner parties were canceled. Weekend getaways were postponed. All of Wall Street, it seemed, was on high alert.

In skyscrapers across Manhattan, banking executives were holed up inside their headquarters, within cocoons of soft rugs and wood-paneled walls, desperately trying to assess their company’s exposure to the stricken Lehman. It was, by all accounts, a day unlike anything Wall Street had ever seen.

In the financial district, bond traders, anxious about how the markets would react on Monday, sought refuge in ultrasafe Treasury bills. Greenwich, Conn., that leafy realm of hedge fund millionaires and corporate chieftains, felt like a ghost town. Greenwich Avenue, which usually bustles on Sundays, was eerily quiet.

A year into the financial crisis, few dreamed that the situation would spiral down so far, so fast. Only a week ago, the Bush administration took control of Fannie Mae and Freddie Mac, the nation’s two largest mortgage finance companies. Then, before anyone could breathe a sigh of relief after that crisis, Lehman was on the brink.

As details of Lehman’s plight began to trickle out on Sunday, the worries deepened that big financial companies might topple like dominoes. Bank of America began discussions to buy Merrill Lynch, the nation’s largest brokerage and the next firm coming under pressure.

 

[rparmfamily]

I'm sorry. I guess I should grab everyone off the street and force them to shop in our store. I guess it's our fault they don't want to spend money on non-essentials. Boy, are we stupid! Don't we feel like fools for the mess we put ourselves in. How stupid can we be?? Why didn't we know this 20 years ago when we started our business which had been more than we could have imagined until recently. I need to get tough and not let anyone leave the store without dropping some cash on my counter.

I hear ya!! My sister just told me my BIL is about to lose his job, again. He's in retail management and has lost his job already this year, then found another one, and now is without a job in a week. They have a baby and she's working, and she was just told to expect reduced hours, because they aren't as busy either. (she works for a student loan company)

It's all their fault... They are doing everything they can. Both are in school and working but it's tough. I guess it's their fault they didn't have a recession/economic turndown proof job, whatever those are. (besides the military)

 

[UConnJack]

Alan Greenspan says YES:



But what does Alan Greenspan know?

Who the hell does he think he is .......... the former chairman of the Federal Reserve?

Oops ................

Of course, Greenspan is the one who eff'ed up the economy with the way he managed it during the housing boom. His policies are the reason the housing and lending market went unchecked leading to the bust we are now in. Yeah, Greenspan is all knowing I'm convinced there is not a single person in this world who can really take into account all the uncountable number of variables and predict how an economy is going to react.

 

[Kathi OD]

As a nation we are wealthier than we have ever been. No the economy is not that bad. Wake up and smell the coffee, the economy is in horrid shape!

Are people suffering: YesAt least you recognize that.

Are many people suffering as a result of their own doing and reaction to their situation: YES Not as many as you seem to believe.

Stop blaming everyone else and take responsibility for your own situation!I don't think that anyone here, who is actually in bad shape, has blamed anyone. There are multiple reasons why people find themselves in tough spots right now and not all of them are a result of personal greed.

 

[smidgy]

I don't even NEED to read this whole thread to reply. I am SO HAPPY for you, that YOUR manufacturing job is ok, NOT SO for NUMEROUS manufacturing jobs. TONS of outsourcing. you have your head in the sand. just cause YOU are doing ok, , EVERYONE else must be, also
In Illinois tons of jobs are ... GONE. big companies going under. TONS of small companies going under. people willing to take PAY CUTS, just to keep thier jobs. giving up benefits (like health insurance, and praying to God nothing goes wrong health wise) because it's better than NOT paying their mortgage. people working for half the pay they deserve.
we are IN RECESSION! WAKE UP

 

[smidgy]

---------

A big part of the problem is that the middle class wanted and bought what were really not affordable for them. McMansions, new cars for all drivers, cell phones for every family member, IPODs for every family member, computers for every family member.... you get the idea. in all their life, they HAD to have 20% down or nobody would talk to them.
.

a home WAS VERY affordable to MANY, BEFORE their jobs went ... poof.
"Mcmansions"? very "catchy" phrasing there. yes, there were SOME who did what you claim. but MANY do not have cell phones (even though you can buy them for $15) and still have dial up computers they bought 10 years ago. yes, there are THOSE who were foreclosed on who really shouldn't have gotten a mortgage. but there are MANY more who did RIGHT their whole lives, and lost thier JOBS! that they thought would NEVER go away! esp. in middle age. and NOW have no income, no health insurance. and it was UNEXPECTED. MANY. tons. keep your head in the sand and hope it never happens to you.

 

[sahd2one]

I'm sorry. I guess I should grab everyone off the street and force them to shop in our store. I guess it's our fault they don't want to spend money on non-essentials. Boy, are we stupid! Don't we feel like fools for the mess we put ourselves in. How stupid can we be?? Why didn't we know this 20 years ago when we started our business which had been more than we could have imagined until recently. I need to get tough and not let anyone leave the store without dropping some cash on my counter.

See your reaction is just to do nothing which is the part of your problem. If the conditions have changed, and they ALWAYS are changing, you adjust, change jobs, come up with new ways to market and move forward.

If you are doing things they way you have ALWAYS been doing them, then you are at fault.

You are blaming everyone else and not adjusting to the way you do business or doing business with those who are not suffering. You can see the glass as half full or half empty and not just half empty but with a hole in it and draining out.

 

[joviroxx]

I think a big point is that the state of the economy cannot be blamed on the government alone. Its been a combined effort that includes, in big part, our citizen's themselves. Not acknowledging the effect that a lack or personal responsibility and bad irresponsible financial practices of MANY has had on this economy is just short sighted.

Recovery is going to take more than just Governement intervention as it just wasnt all there fault to begin with. And to just keep throwing money at a problem without consumer responsibility isn't going to solve a thing. It's a big lesson that how we live and what we do in our personal lives DOES affect other people and the bigger picture.

 

[rae662000]

Wow! Lehman Brothers is filing for bankruptcy protection (it's been around for 158 years),

AIG is seeking Federal assistance to keep going

Merril Lynch being bought by Bank of America (stock shares at the highest last year $98)

Washington Mutual on the ropes


This is amazing and unprecedented.

 

[LuvDuke]

Of course, Greenspan is the one who eff'ed up the economy with the way he managed it during the housing boom. His policies are the reason the housing and lending market went unchecked leading to the bust we are now in. Yeah, Greenspan is all knowing I'm convinced there is not a single person in this world who can really take into account all the uncountable number of variables and predict how an economy is going to react.

Lehman Brothers will file for bankruptcy and Merrill Lynch will be taken over by Bank of America. Two financial giants are GONE.

Lehman Brothers To File For Bankruptcy

http://www.cbsnews.com/stories/2008/09/15/business/main4448374.shtml?source=mostpop_story

Bank of America is taking over Merrill-Lynch. You remember Merrill-Lynch: They were bullish on America. Well, they're hamburger now.

Wall Street crisis: Bank of America buys Merrill Lynch

http://www.guardian.co.uk/business/2008/sep/15/merrilllynch.wallstreet

So much for deregulation creating more competition.

Yup, the economy is just humming along.

 

[JimFitz]

I think a big point is that the state of the economy cannot be blamed on the government alone. Its been a combined effort that includes, in big part, our citizen's themselves. Not acknowledging the effect that a lack or personal responsibility and bad irresponsible financial practices of MANY has had on this economy is just short sighted.

Recovery is going to take more than just Governement intervention as it just wasnt all there fault to begin with. And to just keep throwing money at a problem without consumer responsibility isn't going to solve a thing. It's a big lesson that how we live and what we do in our personal lives DOES affect other people and the bigger picture.

Very good point. People will now turn to the government and say "Why didn't you do anything?" "Where was the regulation?".

Greed got the better of many Americans and this is the result.

Yuck.

 

[Barb]

See your reaction is just to do nothing which is the part of your problem. If the conditions have changed, and they ALWAYS are changing, you adjust, change jobs, come up with new ways to market and move forward.

If you are doing things they way you have ALWAYS been doing them, then you are at fault.

You are blaming everyone else and not adjusting to the way you do business or doing business with those who are not suffering. You can see the glass as half full or half empty and not just half empty but with a hole in it and draining out.

Sorry I didn't go into what we are doing to help ourselves. Trust me when I say we're not just resting on our laurels waiting for the next shoe to drop. We're not. My DH is busting his butt trying to find new ways to bring people into the store. He's exploring every avenue he can think of. We've even considered downsizing. This would be a massive undertaking, but the alternative is much worse. I've gone back to work outside of our business. So we are adjusting and we are doing things differently.

I work in retail in the mall. I see it there, too. Traffic is down, shoppers aren't there. We don't make our daily and weekly goals anymore. They've cut
back on our hours. The company is closing some of their stores.

If anyone else can tell me how to make people come back and spend money, I'll be tickled pink to pass on the information.

 

[sahd2one]

Yet you still fail to see that this nation as a whole is wealthier than we have ever been. You only have your history as a guide but you have to stop your myopic view and look on history as a whole.

 

[LuvDuke]

Sorry I didn't go into what we are doing to help ourselves. Trust me when I say we're not just sitting on our laurels waiting for the next shoe to drop. We're not. My DH is busting his butt trying to find new ways to bring people into the store. He's exploring every avenue he can think of. We've even considered downsizing. This would be a massive undertaking, but the alternative is much worse. I've gone back to work outside of our business. So we are adjusting and we are doing things differently.

I work in retail in the mall. I see it there, too. Traffice is down, shoppers aren't there. We don't make our daily and weekly goals anymore. They've cut
back on our hours. The company is closing some of their stores.

If anyone else can tell me how to make people come back and spend money, I'll be tickled pink to pass on the information.

With all due respect, you don't owe anyone an explanation. Most people in this country AND on this board understand what's happening and why it's happening. Don't let your stomach end up in knots because of the finger-pointing crowd. Most of them are just parroting the latest talking points du jour anyway.

The reason why the financial crises is happening is because of government deregulation which allowed banks and financial institutions brave new ways to lend money to those who should never have received it.

Banks/financial institutions got exactly what they wanted and they did the same things they did before FDR's New Deal regulations were put in place.

Give a big thanks to McCain and his economics advisor, Phil Gramm for gutting those regulations. However, McCain will still have his 7 (?) houses and Phil Gramm isn't hurting either. The public, however, will take a big hit in their wallets and their pension 401Ks. Ain't that always the Republican way.

 

[sahd2one]

And don't forget it was the Democrats that said it wasn't fair that some people had a home and others did not which led to the deregulation in the first place. The Democrats wanted everyone to own a home who wanted one regardless of their economic status and now the "economy" is "paying" for it.

 

[JimFitz]

With all due respect, you don't owe anyone an explanation. Most people in this country AND on this board understand what's happening and why it's happening. Don't let your stomach end up in knots because of the finger-pointing crowd. Most of them are just parroting the latest talking points du jour anyway.

The reason why the financial crises is happening is because of government deregulation which allowed banks and financial institutions brave new ways to lend money to those who should never have received it.

Banks/financial institutions got exactly what they wanted and they did the same things they did before FDR's New Deal regulations were put in place.

Give a big thanks to McCain and his economics advisor, Phil Gramm for gutting those regulations. However, McCain will still have his 7 (?) houses and Phil Gramm isn't hurting either. The public, however, will take a big hit in their wallets and their pension 401Ks. Ain't that always the Republican way.

You can not blame this on the government for lack of regulation. When will Americans stand up and look at what they have done. Why is it always the governments fault?

 

[Charade]

You can not blame this on the government for lack of regulation. When will Americans stand up and look at what they have done. Why is it always the governments fault?

The government is supposed to be (according to some) the watchdog for things like this. Unfortunately, nobody watches the watchdog's greedy paws.

 

[Galahad]

when Bill Clinton left office the government had a surplus. now we've got the largest deficit in our history. I don't see that as a good thing for our economy.

We had an actual surplus for exactly one year - very much due to the taxes realized by the dot.com bubble.

To answer the O.P. - yes, the economy is bad. It is not bad due to the action of politicans for the most part though. Bad money chasing bad money is never a good thing. People and idustries in debt when those kinds of things hit really suffer.