the great recession of 2008

[50 Proof]

The government should what? Are you crazy? Perhaps the government should stay out of each state's pocket books and let local leaders drive their economies. Encourage fiscal discipline, yes. manage or get into my capital, NO!
Consumers and producers need each other. Go one week without buying anything and get back with me.

Who said anything about government interfering with state's pocket books? I just said the government should promote educating people on saving and investing rather than promote spending money they don't have by getting into debt. Feds lower interest rates for what reason, to encourage people to get into debt to spend money they don't have because it helps the economy which in turn helps the large money hungry corporations that control this country.

This country thrives off of consumers spending money they don't have to buy shit they don't need. Then our government promotes this even more buy passing a stimulus package act of 2008 to encourage consumers to spend the money to boost the economy. Maybe the real problem is consumers don't have dick for cash reserves. Geez, why would that be? Because they spent it all on shit they don't need.

Go one month without buying shit you don't need and then get back to me about how your bank account looks.

 

[MassCobra]

But more stuff and keep America working.

I would but I have to shell out $600 - $700 for heating oil this week. :shrug:

The government should what? Are you crazy? Perhaps the government should stay out of each state's pocket books and let local leaders drive their economies. Encourage fiscal discipline, yes. manage or get into my capital, NO!
Consumers and producers need each other. Go one week without buying anything and get back with me.

Agree with you here, the economy is driven by consumer spending.

 

[DaleM]

I would but I have to shell out $600 - $700 for heating oil this week. :shrug:



Agree with you here, the economy is driven by consumer spending.

Sounds like you need to conserve energy better. Close rooms that don't need heat. Wear warmer clothing inside and control the thermostat. Like we do here in Germany. I spend 1/3 of what you are spending on heating. Gas is 8 bucks a gallon here. What is up?

 

[HISSMAN]

If people were just fiscally responsible things would be alright. But, fuel prices are making things hard for everyone. As for heating, I am in West Virginia, and my heating electric and gas bill have averaged about $265 combined over the last 5 months. Not cheap, but only about $15 more than it was on the average last year. During the Late spring, summer, and early fall my gas bill will drop to $0 and my heating averaged about $100 per month last year, so I expect the same or maybe a bit higher this year. Oh, my home is 2,150 sq ft and two stories.

-Jeff

 

[50 Proof]

Agree with you here, the economy is driven by consumer spending.

Yes that's exactly what I'm saying, this is an economy driven by consumer spending. All I'm saying is, maybe this "consumer spending, get into more debt" type of economy IS the problem that this country is facing. Like Hissman said, if people were more fiscally responsible, things would be alright.

 

[DaleM]

Yes that's exactly what I'm saying, this is an economy driven by consumer spending. All I'm saying is, maybe this "consumer spending, get into more debt" type of economy IS the problem that this country is facing.

Manageable debt is OK. Do you want the US Government dictating your spending patterns? They will soon by making "free" money by lowering rates again. A cycle we will survive.

 

[MassCobra]

Sounds like you need to conserve energy better. Close rooms that don't need heat. Wear warmer clothing inside and control the thermostat. Like we do here in Germany. I spend 1/3 of what you are spending on heating. Gas is 8 bucks a gallon here. What is up?

I don't mean I spend that a week, that's to fill the tank. I conserve more that ever for obvious reasons.
Gas prices in Europe are a lot higher because that's where they get most of their tax revenue. Is that correct?

 

[50 Proof]

Manageable debt is OK. Do you want the US Government dictating your spending patterns? They will soon by making "free" money by lowering rates again. A cycle we will survive.

And free money by lowering rates again helps promotes the ability for consumers to spend money they don't have. Manageable debt is OK, but excessive debt is not.
I never once said that the US Government should dictate peoples spending patterns. All I said is that the government should do more to promote saving and investing. Do more to promote such as, incorporate lessons on saving and investing money into the public school system so that kids are raised at an early age with saving money in mind. If people were more educated on HOW to save money, I strongly suspect that there would be a higher tendency for people to save money. Problem is, there's a large percentage of people who don't know jack about how to save money, how to create an emergency fund, how to prepare for retirement, how to prepare yourself for an emergency situation. Human nature, if you don't know how to do something, you'll probably avoid doing it altogether.

This country is still being run based off old out dated ideas. You go to school, get an education, find a good job, work the rest of your life, and you'll be taken care of for the rest of your life and for retirement. In case if you haven't noticed, this country has changed a lot. We aren't living in the industrial revolution anymore pal. Corporations don't offer pension plans anymore. Corporations aren't afraid to lay off people, cut existing promised pension plans and basically leave their employees out in the cold. This country has changed, but the politics and education system in this country are not keeping up with the times. A large majority of people in this country are still living their lives based on the ideas that they will always be taken care of.

 

[DriftwoodSVT]

Corporations don't offer pension plans anymore. Corporations aren't afraid to lay off people, cut existing promised pension plans and basically leave their employees out in the cold. This country has changed, but the politics and education system in this country are not keeping up with the times. A large majority of people in this country are still living their lives based on the ideas that they will always be taken care of.

That right there is the #1 reason I went out and got a government job. Great pension and benefits, no layoffs, no illegals taking my job, etc.. I'll be more than happy to let the taxpayers take care of my expenses after I retire.

 

[spitin venom]

I see credit reports all day. 2-3 years ago most of the credit reports I saw were over 630. In the last 8 months the average credit is in the high 400's. It is bad. People are losing there houses at a record pace. They are also using credit cards to pay bills. When the credit card is maxed they move on to another one. It is a vicious cycle. I just read a report that people are pulling money out of their 401ks' at a record pace to try to get there heads above water. I am located in Los Angeles which is getting killed at the moment. You can't expect houses to more than double in value in a couple years and have people pull money out of them and not have a bad negative effect. It is really bad and going to get worse.

 

[HISSMAN]

Scores in the 400's?? Holy hell, I didn't know they went that low.

-Jeff

 

[OCSnk]

According to BBC News, tent cities are now springing up outside of Los Angeles- filled with victims of the subprime crisis:

http://housingdoom.com/2008/03/14/subprime-tent-city/


:idea:Technically they are called "Bushvilles" after the American tradition started when Hoover was President and the Republicans crashed the economy and people started to live in tents called "Hoovervilles.

I really don't feel bad for too many of them...I feel for the kids though...they are homeless and have only a couple of idiots for parents to look up to...."my mommy and daddy are financial morons who showed me how to loose a house without even trying and blame everyone else!"

We might eventually get out of it, but in reality this will happen again.....the cycle will continue because some people just don't learn....those that do...cover their asses.

 

[Zorabot]

That french guy was right, the magic is over and the hardest thing for American's will be adjusting to the change.

 

[PSUCOBRA96]

In a decade or so we will forget all about this.

what if it lasts a decade?

 

[SVT4ME]

Teachers pay sucks

 

[canibus]

I'll remember how tough it is in California next time I am in town and am driving through Malibu ....

there's a lot more to california than the glamour spots

 

[slick4_6]

Teachers pay sucks

Teachers do not do that bad. They only work 10 months a year and go home with a retirement that includes FREE insurance for the rest of their life. They also get a ton of vacation days and sick days. It is not engineers pay by any means, but it is not as bad as everyone makes it out to be.

 

[Sonic605hp]

it's not gonna get better any time soon

 

[Klay]

Scores in the 400's?? Holy hell, I didn't know they went that low.

-Jeff

I believe 350 is the floor, I know I have once seen someone at like 385 or so. I have no clue how you can get yourself there but people do.

 

[50 Proof]

I have no clue how you can get yourself there but people do.

I do, people spend way more they can afford so that they can maintain a lifestyle beyond their means. I see it all the time in California. Charge up the credit cards, when thats maxed out, cash out your home equity. Then they get to the point where they realized they are ****ed and stop paying on everything altogether, so it goes down as a charge off, reposession, etc, and everything goes to collections. It's really easy to screw your credit up. The hard part, for most people seems to be maintaining a good credit score.

See the thing is, in California, a lot of salaries definitely do not meet the cost of living. It's especially easy to live a lifestyle of debt out here because you have expensive cost of living, salaries that aren't high enough, and the superficial factor going on out here where people want everyone think they're a millionaire by driving 50k dollar cars on leases (meanwhile living in a 1800 dollar a month 500 square foot apartment).