Okay, I know, the economy sucks right? Well my mutual funds are down and..........well, my mutual funds are down. So, I guess I should just go hide in a hole somewhere.
Once again the media is hammering the poor economy point and getting everyone to jump on the "bailout bandwagon". Now GE needs money, there are other labor unions needing money(kind of a coincidence since they all supported Barry), and the whole world's going to Hell in a handbasket. That's IF you believe everything the media tells you.
In case you haven't done this, go out near the malls this coming weekend. I went out Saturday up to the Viewmont Mall area then to Montage. The amount of traffic and packed stores told a different story. I went in to Sam's Club and gave up waiting in line because almost every patron had carts and flatbeds packed with product.
The shops at Montage were filled with shoppers carrying bags from store to store.
Last time I checked, these weren't signs of a struggling economy.
And as for the credit crunch, here's another story for you. I went in Guitar Center and a certain instrument caught my eye. They were having a special with the "Guitar Center" card. I told the salesman I'd take one. He said "oh, with the whole bad economy and credit thing maybe we should make sure we can get you approved first." I just laughed and said "sure, whatever you want." Long story short, I had no problem getting approved for quite a nice amount. So, I'm not a victim of this credit crunch or this "tanking economy" either. And from the looks of all the happy shoppers, the only victims are those people who are believing what the media is telling them without finding out for themselves.
5 comments:
Like everybody else that was out "shopping", you bought on credit. The economy is in the crapper and getting worse every day. Just because you saw credit card bandits doesn't mean it isn't. To the contrary, it worsens the problem. As more people are charging junk they can't afford to pay cash for, more of them will default on those cards.
Glad you know so much about my finances anon.
I bought with the card to get a special.
I opened up an account at Target a couple months ago to get 10% off then paid it off and closed the card the next month.
As for people defaulting on their cards, maybe the credit should be a little tighter right??
Just like the whole mortgage mess. If people can't afford it, they shouldn't be given the credit.
Please enlighten me. Give me better than a blanket statement of "the economy is in the crapper."
How are you personally effected by this news in the past month?????
Just curious.
And if you want to go run up credit cards and default, that's your business. Don't assume everyone else does this.
Rule one of keeping your money. Use other peoples money first.
Rightwing,
The economy is in a tank. Purchases that you cite are not the section of the economy that is the main problem.
Housing inventory which is usually at about a 6 month level has risen to a 1 year level. The biggest Nissan dealer in PA delivered 5 cars so far this month when they normally deliver 150. Only 63% of people applying for car loans are being approved compared with 83% last year. In September 1,000 independent or used-car dealers closed their doors. Ask used car dealers how its been going?
People are bargain shopping at the mall. Giving people a stimulus check will not work this time. Any check will be offset by tax increases on a state and local level.
PA is looking at a $3 billion shortfall this year. Look at the stories about the local governments in our area. States, cities, and school boards will all be looking for cash as the bigger economy fails to produce the anticipated tax revenue.
The people who are personally affected would be those who lost their homes in bankruptcy. Foreclosure rates in Pennsylvania jumped 73% compared to the third quarter of 2007.
Jumping over to the banking sector is the next economic problem. You might be able to secure a credit card. Try and go to the bank as a small business and say you need new capital. Be a bank making mortgages and try to sell them in the secondary market to get your money back so you can make more mortgages.
Iron ore production in China is coming to a screeching halt as the demand softens.
Ask the appliance salesman what is selling? Big ticket or small ticket?
Credit card and student loan defaults are looming on the horizon. The meltdown will take time.
Barack Obama is already backpeddling on raising the national debt. "We shouldn't worry about the deficit next year or even the year after. That short term, the most important thing is that we avoid a deepening recession," Obama said.
http://abcnews.go.com/GMA/Politics/story?id=6269439&page=1
He knows the big economy is in the crapper.
http://www.csmonitor.com/2008/1003/p01s02-usec.html
http://cbs3.com/local/foreclosure.pennsylvania.homes.2.846992.html
McGruff,
First I'll address the housing inventory. The tons of new housing going up all over obviously wasn't needed and was waaaaay overpriced. I know. I use to be in construction. I know that houses that cost 75K to build would be put on the market for 250K. Developers knew anyone and their mother could get a loan on a house like that with low monthly payments so they kept building. People with loans where they only had to pay the interest are now screwed. They gambled and lost.
As for the foreclosures, see above.
The car loan percentages tell me that 20% of the people who got the loans last year didnt really qualify in the first place.
The 3 billion dollar shortfall didn't just happen in two weeks. When there is a surplus of funds it's pissed away and no one ever asks questions. Fiscal responsibility is not being practiced but people are just happy to bend over everytime politicians need more of our money.
As for small business loans, I'm a white male and I've been turned down before without putting up my house to get the loan. I don't get government breaks on those.
As for China, I actually speak to people in China a few times a week. None of them have cried to me yet. I'll have to ask their opinion tomorrow.
The loan defaults are just another beauty part of the panic setting in. Just like the bailouts. If it's working for one person it'll work for another.
Maybe I sound bitter but I'm a little short on sympathy right now. Years ago a period in my life where I didn't even have 5 cents to my name. Eating only rice for dinner at times. Saving money and working hard to get ahead. There was no government assistance or bailout. No free college tuition or grants handed to me. The SBA told me flat out I would qualify for nothing because I was neither female or a minority.
Spending carefully and not living above my means is the reason I'm not losing my house. If I could afford a 100K house I didn't buy a 300K house. If I could afford a used car I didn't buy a new Hummer. What's so hard to understand about that.
Everything is leveling itself out. It was bound to happen regardless of who was in the Whitehouse.
This is all a repeat. Read "The Great Crash" by Galbraith and this is all the same that happened before the Great Depression (large amounts of leverage for investments, real estate prices beyond most ability to pay, and currencies looking to race to the bottom to have an edge at the "export" market).
Granted, I don't think we are in roads for another Depression yet, but we're in for a lost generation similar to Japan 1990-present.
People bought stuff they couldn't afford because real estate prices (especially here in California) had no business being 10x income.
I love the fact that people will b***h and moan about $4 gasoline but will celebrate when their house went up $20k. Unless increases in income are in line with that jump, the equity gain is temporary unless you sell.
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