Does your family feel the excruciating financial pain most Americans are experiencing?

Does your family feel the excruciating financial pain most Americans are experiencing?

Things are getting really bad out there:

-Starbucks is closing 600 stores in the United States.

-Merrill Lynch is warning that General Motors may go bankrupt.

-New foreclosures almost quadrupled in Los Angeles and more than doubled in Miami in the second quarter from a year ago.

-Fortis, a major European financial institution, expects a complete breakdown of the American financial markets "within days or weeks".

-Chrysler is shutting down its St Louis minivan plant, cutting production of its top-selling vehicle and 2,400 factory jobs.

And things are going to get a lot worse.

You don't believe me?

Review the charts and analysis below and then come back and tell me that I am wrong:

shatteredparadigm.blogspot.com...

Starbucks isn't closing 600 stores because they can't sell coffee, they are closing nearby Starbucks stores that are cannibalizing the other's sales...it costs more money to keep up two stores, so you close a few and still get the same amount of foot traffic and it will improve your same store sales numbers Bankruptcy does not mean the company is going out of business, if I'm not mistaken Chrysler filed bankruptcy in the 1980s. Foreclosures still only effect 1-2% of households. All automotive companies are going through a changing process, and Chrysler who is not private and doesn't have as much access to capital is going to cut more aggressively than GM or Ford. Fortis made their statement after RBS and both are very dependent on monetary policy and oil prices.

Yes the economy is in shambles right now, but it's actually very regional and in places that have experienced significant run up in home prices (L.A. & Miami.) I plan on buying a new laptop within the next 3 weeks, even though times are a bit rough and inflation is high...and I know that with a slowing economy that oil prices will eventually come down, as one person put it: "Two trains are rushing towards each other. One is ...rallying oil prices and the other is economic recession. At some point they're going to collide." So stop painting this as the end of the world, things are tough, but we've been through worse and if you don't believe me, then you aren't very old or don't know a bit of financial history.

[edit on 5-7-2008 by yellowcard]

I've been homeless for almost a year now. Does that count?

EDIT to add: Despite the fact that I have worked since I was fourteen, and am currently employed.

[edit on 7/5/0808 by jackinthebox]

This is just a regular economic recession cycle. We were actually due for this over a year ago but the Fed kept pro-longing the inevitable by lowering rates, and pumping the market full of money (thus inflating the dollar which increases the oil prices for us). We'll come out of it eventually. This happens, or should happen, every 4-5 years. You can't grow indefinitely.

For now all we can do is cut unnecessary spending and wait it out. My family didn't change anything that we do other than buy a more fuel efficient car, but the older car was running over 150k miles so it was time for a new one anyways.

Just my 0.02

Zebra

reply to post by jackinthebox


Yes it does, myself I am technacly "homeless" as im living with my sister, I have no job, no car, and it pretty much stinks out there.

The Economic crisis is having global consiquences...
U.S. subprime crisis hurting Swiss banker
Mounting job losses point to US recession
Fed must prevent wage-price spiral: Lockhart
US consumer confidence hits worst quarter since 1992-ABC
May construction spending fell 0.4 percent

The news isnt good for the US right now.



[edit on 7/5/2008 by whatukno]

reply to post by whatukno


I am lucky enough to have a car, and a job. Although the car is in dangerous condition to be driving and could kill a lot of people, and the job doesn't pay enough to do those repairs. My only hope is I wipe out a family being led by someone that thinks everything in America is hunky-dory, and bitches about the poor person using food stamps.


[edit on 7/5/0808 by jackinthebox]

Originally posted by jackinthebox
reply to post by whatukno

 

I am lucky enough to have a car, and a job. Although the car is in dangerous condition to be driving and could kill a lot of people, and the job doesn't pay enough to do those repairs. My only hope is I wipe out a family being led by someone that thinks everything in America is hunky-dory, and bitches about the poor person using food stamps.


[edit on 7/5/0808 by jackinthebox]

Yet you still have internet? Priorities? I have a friend who is supporting a girlfriend and has a kid on the way, and is the only one in the relationship with a job. Works for $9-$10 an hour and still manages to pay for rent and food...yet still burns money on cigarettes. So....I have a feeling you are highly exaggerating your situation, it maybe bad, but you are on the internet, and considering internet is something like $45 a month when bought in pair with cable or phone, you could easily stretch that savings out to save enough to eat for weeks, if you only ate 2 times a day on average of $3 a meal. You are not in a third world country, the only way you could seriously be hurting is if you were trying to support an entire family and were in debt up to your eyeballs (which would be your own fault)

[edit on 5-7-2008 by yellowcard]

I haven't had any problems at all, but this financial crisis is still in the early stages, as Ron Paul mentioned. Sure, we've had hard times before, but this will probably get much worse as time goes on. I'd like to see where we are by next summer.

No one I know is in "Financial Stress" from the current trends. My dad is actually looking for a big V8 truck right now.

The only people truly affected are the ones who were on the edge to begin with.

reply to post by JediK

I haven't had any problems at all, but this financial crisis is still in the early stages

Wise observation. It wasn't so long ago that I was getting by with a fairly descent job wearing a uniform with a shiny shield pinned to my chest. My life has been a series of financial extremes actually, ever since I was a kid. My extended family, on both sides, also run the extremes from millionaires to destitute.

Anyone who thinks that their work ethic, their education, or their "wise" decisions makes them immune are in for a rude awakening.



[edit on 7/5/0808 by jackinthebox]

reply to post by yellowcard

Yet you still have internet? Priorities?

(sigh)

Do you realize how many times I have had to explain this to people like you who don't bother to even think before they post. Obviously you know nothing about being poor, so kindly don't talk about something you know nothing about.

In short, I do not pay for internet access and do not own a computer.

reply to post by yellowcard

I have a friend who is supporting a girlfriend and has a kid on the way, and is the only one in the relationship with a job. Works for $9-$10 an hour and still manages to pay for rent and food...yet still burns money on cigarettes.

Oh yes, everyone always "has a friend." Judging from your snarky remark about your friend's smoking habit, I don't think you really see this person as much of a friend at all and are highly judgemental.

Let me ask you this if you're so smart. HOW does this friend get by on $9-10 an hour? Because where I am, that's only about $250 a week take home. That doesn't even cover the average rent for a one-bedroom in my county, much less living expenses for myself, and forget about having any money to raise a family with.

Average Rent

in some way shape or form we will all make it thru...

Just remember its easier to throw stones then to build someone a house out of them....

Lets all attempt to build the house rather then throw stones.... We can all help each other if we did no one would suffer economical problems....

reply to post by yellowcard

You are not in a third world country, the only way you could seriously be hurting is if you were trying to support an entire family and were in debt up to your eyeballs (which would be your own fault)

Tell that to the one in eight Americans who are living below the poverty line.



And this video is at least a year or two old.



[edit on 7/5/0808 by jackinthebox]

At the risk of making some people angry...

Nope, we're doing just fine. My job is intact, actually doing very well since the higher-priced stores are the ones feeling the biggest pinch. Just got a 17% raise. Food prices are hitting us a bit, but I am countering with a garden and some chickens. Fuel is no problem, since I drive a company vehicle on a company fuel account. My mileage is one of the best in our fleet, so no one gripes about it. Heck, I still drive a Chevy pick-up when I do drive.

I do feel for those less fortunate though. The OP is right, the economy is faltering. I'm afraid we are seeing the results of the tax rebates keeping things afloat, but they are finished this month. After that, things could get VERY hairy.

Jevic Trucking is gone, Alvan closed, Schneider is parking trucks (from hearsay), and US Xpress is planning on doing the same. Covenant is losing money and so is Swift. Every day I hear about the latest small company to close its doors. That means less goods are being shipped, which means less goods are being sold. That indicates that factories will be closing as well, or at least laying people off. At some point, the government handouts will exceed what can be taxed/borrowed, and at that point, it's back to 1929... or worse.

I strongly suggest everyone who is interested in surviving this coming catastrophe tries to live a more spartan lifestyle than the one we have become accustomed to, producing the things we need rather than buying them... because we will not be able to support it during the coming few years. Goo news: it will pass, we will recover. We just have to get through the coming depression.

TheRedneck

No, my family is not feeling any excruciating pain. As young adults, my sister and I were taught to save and purchase little on credit...how very un-American of us. I have 6 months of food and water at all times as well as plans and equipment for creating sustainable crops, water supplies and electricity. I also bought another 500 rds of .223 last week.

All of this and I still feel underprepared.

I drive an SUV too...

[edit on 6-7-2008 by CyberSEAL]

Originally posted by jackinthebox
reply to post by yellowcard

 

I have a friend who is supporting a girlfriend and has a kid on the way, and is the only one in the relationship with a job. Works for $9-$10 an hour and still manages to pay for rent and food...yet still burns money on cigarettes.

Oh yes, everyone always "has a friend." Judging from your snarky remark about your friend's smoking habit, I don't think you really see this person as much of a friend at all and are highly judgemental.

Let me ask you this if you're so smart. HOW does this friend get by on $9-10 an hour? Because where I am, that's only about $250 a week take home. That doesn't even cover the average rent for a one-bedroom in my county, much less living expenses for myself, and forget about having any money to raise a family with.

Average Rent

A weeks pay is enough to pay a months rent around these parts for a small, cheap apartment, and pay will always chase the living cost...so likely you will make much more than $8-10 an hour in "your country" to sustain the cost of living.. Oh and yes cigarettes are a waste when you're poor; If you can honestly convince me that smoking a cigarettes is a necessity at all and helps your financial situation, then please inform me. Pointing out the obvious as it relates to someone's financial situation doesn't make you a bad friend, it actually makes you a good one. Real friends don't let their friends dig their own financial graves and will help them when they can. Which I do. It is quite obvious the more you speak of your story or how "I could never understand", with various defensive posts that do nothing but point to a group...which should never be an excuse... that you are more a victim of poor financial management than of the economy or the government.

[edit on 6-7-2008 by yellowcard]

My family has experienced exactly the opposite. For years, we had been living from paycheck to paycheck and paid zero attention to our finances. We never balanced our checkbook and paid out around $750 a year in overdraft fees as a result. We also floated $25,000 or so in credit card debt and an 80/20 mortgage on our house.

Well about 4 months ago, we were introduced to Dave Ramsey and started paying attention. We made a budget for the first time in our lives and now, despite the increase in food/gas prices, we're on track to have that credit card debt paid off by the end of the year.

I realize my situation may not be like most, but my family is doing better financially than we ever have.

Edit: Oh yeah, for the record, in my area you can get a 3 bedroom house for $650 a month. If you're single and just want a one bedroom or an efficiency apartment, you're down in the $300 range. For comparison, there are signs in gas stations around here offering $12 an hour and I saw sign in a grocery store just the other day offering $20 an hour to start for a management position. In my area, there are "now hiring" signs everywhere and I'm usually surprised by what they're offering.

[edit on 6-7-2008 by BlueTriangle]

Originally posted by yellowcard


Yes the economy is in shambles right now, but it's actually very regional and in places that have experienced significant run up in home prices (L.A. & Miami.) I plan on buying a new laptop within the next 3 weeks, even though times are a bit rough and inflation is high...and I know that with a slowing economy that oil prices will eventually come down, as one person put it: "Two trains are rushing towards each other. One is ...rallying oil prices and the other is economic recession. At some point they're going to collide." So stop painting this as the end of the world, things are tough, but we've been through worse and if you don't believe me, then you aren't very old or don't know a bit of financial history.

[edit on 5-7-2008 by yellowcard]

I agree with you in a sense I do feel like the banks are sitting on a ton of cheap borrowed money and foreign money that they are going to let rip in the next year or two or at least I am holding out hope. Im buying banks soon. Not yet but soon.

As far as the overall economy though this situation is much different than in the past. First off we are a debtor nation now not a creditor nation. On top of that our manufacturing base is all over seas. This is going to make for a very hard recovery. We also have a HUGE debt and a big interest payment coming up next year from all the money we borrowed. I remain very cautiously optimistic.

Everything's great for these folk! Just camping out.










Next year this will be a common occurrence around all the large metropolitan areas.
I can just hear the tirades from those in better circumstances: "they are all just a bunch of drunks and junkies, #*(%$ em!!"

[edit on 6-7-2008 by whaaa]

[edit on 6-7-2008 by whaaa]