Bad economy - has it affected you?

[DigiSLR]

With all the news everywhere you look about the state of the economy, I can't help but wonder how it's affecting individuals like you and me.

Wall Street has taken a beating, stocks have crumbled, people are crying that the sky is falling and we are headed for the Great Depression part 2.

I've lost money in my 401k, but I'm not ready to retire, and if I hold out for the long term, I'm confident that things will pick up again long before I retire. I'm in the market for a new house, but still saving money for the proper down payment. The downturn in the housing market doesn't seem like a downturn at all in the DFW area. Frisco was rated the # 7 best place in the country to live recently.

Maybe I'm lucky, and please don't think I am gloating, but all this talk of doom and gloom hasn't really hurt me (yet).

How about everyone else? Is it really as bad as the media says it is? If you're not trying to actively sell your home, and you still have your job, how has this terrible economic news affected you?

[adirty1]

It hasn't yet. I was not and I am not heavy in financial stocks. Now if I was one of the people in our neighborhood that bought a house they couldnt afford then I would be in trouble. However, we seem to have burned through those people about 2 or 3 years ago when my area was the leader in foreclosures. Everyone around us that is selling their home right now is asking almost what they paid for it. People have to take a loss to sell their home in our area. the people that are asking more then what they paid are still on the market. I have seen 3 homes turn over in less than a month but, again they took a loss on the deal. My neighbor just sold his home for 170k and that was 5k less than what he paid for it.

[HotHolly]

I think the media has been careful with this. Up until now, they havent even wanted to call this economic mess a recession. We seem to have skipped that part.

Locally - I deal with upscale clients who are used to acting like $100 bills are pennies. They drop them without thinking. Well, they have started thinking. They still spend, but they seem cautious.

My parents recently retired from NY to TX. The housing prices are plummeting up there. Their house devalued over $120,000 while it was up for sale (~14 months). My uncle's home (who is still there) has devalued from ~$700,000 to around $300,000 in the last 20 months. A lot of people up there are crying. I cant imagine buying a house @ the market price 3 years ago and owing that much more than its currently worth.

The affects of whats happening is effecting the local economy too. Brides have been pushing back wedding dates to wait for things to get better. Ummm, things are worse economically speaking, this year than last year. Im concerned about all the credit crap and whether or not my vendors will be able to provide the products I need.

Id rather not freak out - I have enough other stuff to do. Although, I can see the potential for a nasty chain reaction if large companies cannot get the credit they need to function. Last I heard, AT&T was faltering.

I dont think its hype. Id rather bury my head in a hole, but my big fat hair might get stuck. Friggin curly hair! gotta meet a client.

[Jenny Z]

Originally Posted by HotHolly

I think the media has been careful with this. Up until now, they havent even wanted to call this economic mess a recession. We seem to have skipped that part.

What media have you been watching?

Part of the problem is that the media is playing it up... if you tell people the sky is falling long enough...

(not saying that there isn't a huge problem right now, but they sure aren't helpin')

[JohnT]

No.

[Truckman]

Right now I'm glad I sold my business when I did at the beginning of summer...I'm equally glad to have put that money in CD's instead of the stock market as I was urged to do...My little IRA is invested in stocks and has lost 20% of its value...There's not a great deal in it and it'll come back up at some point...

I had thought earlier of selling my home and moving to a smaller one but I'll hold off a while until the housing market rebounds...Ben

[Joe_Lorenzini]

Let's just say I'm happy the D3X wasn't announced...

[HotHolly]

Originally Posted by Jenny Z

What media have you been watching?

Sesame Street.

Today's economic crisis is brought to you by the letter "Q."

I was typing too fast and didnt clarify - the government has denying recession and played it way down until recently, where all of a sudden we went from being in a minor economic slump (or whatever they were calling it) to 1930's depression-like economy issues.

I filter out a lot of what the media says...I believe they recommended me wrapping my house in duct tape (or was it Saran Wrap) after 9/11. I coulda thought of something silly like that on my own.

[Breezy]

I think parts of it is where you live.
For the photography side, I am stilling getting sessions and actually averaging more here than TX. But military knows they are getting paid every month, so they aren't as concerned I dont' think as some others. The bride I just booked says she feels bad taking advantage of the "sales" that are there to draw people in but she knows she has it and might as well get a good deal.
I know back home in NC, there haven't been jobs there in a while, and they are laying people off left and right. I would say 60 % of the people in the county are jobless and have been for some time.
I am not freaking out yet. Not if the CC companies start screwing with my credit limits etc... then I will get concerned.

[dbphotos]

While, like everyone else with market investments, I have taken a beating I'm feeling very smart right now that I put 25% of my IRA into cash about a year ago and am now buying slowly and methodically while the market is "on sale". Also, non-market investments are looking better and better all the time.

Everyone will feel the pinch over the next few months because you have those that have lost most of their assets between housing and the stock market and even the "rich" have seen a hit in their assets and most will be disciplined enough to curb their spending. Probably the only people that don't need to adjust their spending are the "super rich" and I don't know many of them.

Also, the housing market has not seen all the negative hits. The sub-prime market was a small part of the mess, the big hammer that is starting to fall now are those that got into "A paper" adjustable rate mortgages that are starting to adjust (3/1, 5/1, 7/1 and Pay Option ARMS). We are fortunate in Texas that our housing prices didn't go crazy so we won't see as big a hit as both coasts, but a lot of spending in the national marketplace was done with home equity and now that there is over a trillion $ less in equity, spending will continue to decline for a while.

Bottom line, don't live above your means, don't sell when the market is low, either hold or buy and eventually we will dig out of this mess. Also, make that D3 last a little longer.

Just my .02 cents (it's worth what you paid for it).

[CaptainTom]

Just my .02 cents (it's worth what you paid for it)

.02 cents is one fiftieth of a cent. We ARE in a depression !!

[jeffkohn]

Originally Posted by HotHolly

I think the media has been careful with this. Up until now, they havent even wanted to call this economic mess a recession. We seem to have skipped that part.

There's an actual definition for the term recession - two consecutive quarters of negative growth, which has not actually happened yet. That hasn't stopped various people in media and congress from using the term repeatedly, though.

[darktiger]

No I have not been affected. I want to quit my job in Austin so I can move to Houston, but I get paid pretty good. But then again I should actually look for a job in Houston...

[rages4calm]

In short.. its destroyed so much on my end.

[sldi]

Freight has been slowing down for the last 6 months. I used to run close to 3000 miles a week, now its down to about 2500 on a good week. I can tell things are tightening up more because they will take what used to be a two day run and set up appointments that make it a 3 day run, that's how they string us out and stretch what freight we have. Normally I would be in the highest volume of freight for Christmas right now, but stores have cut back trying not to over buy in what they think will be a dismal yr. At least I am on my way to Phoenix right now to pick my 2009 Freightliner/Volvo/International, I get to pick when I get there.