The Global Financial Crisis and You.

[The Atheist]

I trust this isn't considered politics, because while the reasons for the crash include political positions, the crisis is economic, not political, and the main themes I'd like to explore are:

Has the crisis affected you?

How to survive it!

Which are more personal than political.

I'm a former financier & banker who is currently a recruiter, so I think I have a good handle on what's going on and hopefully, how to make sure you come out the other end.

Many people are losing their jobs, but on the other side, some companies are still employing. The trisk is to know which one's which.

The first advice I'd give to anyone in any financial trouble is to talk to your financiers! In a time of widespread debt problems, banks and financiers will be very well disposed to people who admit to trouble before the bank goes looking for them.

Payment holidays, reduced interest, and even writing off a debt are all options you can legally explore to try to keep your head above water.

I'm sure lots of others will have valuable input, so join in!

[GX4146]

o geez, haven't affected me yet but i'd probably get it tomorrow.

[The Comedian]

Good topic The Atheist. I agree that it isn't political and insofar as the discussion doesn't stray that way, it should stay non-political.

I've been unaffected (directly) by the economic crisis. I work in education and my wife in healthcare, so fortunately, we're in the two US industries that have had the most job stability. But I can see the crisis's subtle effects in the small town in which I live: The Ford dealership shut down, more main street business are closing (a jeweler, a furniture store), etc. . . stuff like that.

The real test will be this summer -- I live in essentially a tourist town whose main industry is its natural beauty that brings so many people here in the summer. If summer tourism slows significantly, I think this town will be closer to "devastated" than to merely "affected" as it is now.

[mono]

I have seen some undeniable differences around me, certainly, including a lot of businesses closing around me, even Starbucks. Now, living downtown, I have to walk two blocks instead of just one to get a mediocre cup of coffee. :lol:
In all seriousness, yes, I have felt personally affected by the crises. I work in the medical field, and see inpatients in a critical care unit. The past few months have seemed the busiest and most hectic months I have seen in my almost 3 years working there. A common case I hear of how people have gotten so critically ill these days: patients have gotten laid off their jobs, lack money and insurance, and cannot afford to see a doctor on an outpatient basis; instead, they try to 'tough it out' and dismiss whatever illness they have as a 'fluke,' and end up in really rough shape.

[JBI]

The government is trying to up tuition, that hurts, but my parents are both semi-retired, and all four of us are in school in one form or another, and work minimum wage, so there isn't too hard a setback. I'm waiting for things to get bad - and I mean real bad, like in the 1930s with movement and change, but so far nothing is really moving at all.

All I know is, though, that this is perhaps the worst time to be a writer and linguist who doesn't wish to write social-inspired works. I've been looking into poetry of the 1930s in Canada for trends, and I have noticed, even the great poets, are completely preoccupied, and unable to really break out of it. I think our culture, and the world's in general, has become so absorbed in the mess, that no thought outside of it is really taking place.

That's to be seen though, as this thing, which I have heard they are calling the "great recession" now, which is to avoid the term, politically, "the great depression II", is only just getting underway.

Of course, whatever investments I have are down (though I am young, and have no intentions of selling). But I think really Canada has a very different feel than the United States, which to me seems to feel as if the End is near (and I won't say if I agree or not).

I expect, really, a big shift in culture and power in the world. Perhaps our friends to the south have run themselves off a cliff, and their friends from the south will grow in their place, or perhaps our friends from overseas will catch up, and cash in. Who can say?

Certainly though, we know who is being hit the hardest. Everything just takes a while to unfold.

[Emil Miller]

The government is trying to up tuition, that hurts, but my parents are both semi-retired, and all four of us are in school in one form or another, and work minimum wage, so there isn't too hard a setback. I'm waiting for things to get bad - and I mean real bad, like in the 1930s with movement and change, but so far nothing is really moving at all.

All I know is, though, that this is perhaps the worst time to be a writer and linguist who doesn't wish to write social-inspired works. I've been looking into poetry of the 1930s in Canada for trends, and I have noticed, even the great poets, are completely preoccupied, and unable to really break out of it. I think our culture, and the world's in general, has become so absorbed in the mess, that no thought outside of it is really taking place.

That's to be seen though, as this thing, which I have heard they are calling the "great recession" now, which is to avoid the term, politically, "the great depression II", is only just getting underway.

Of course, whatever investments I have are down (though I am young, and have no intentions of selling). But I think really Canada has a very different feel than the United States, which to me seems to feel as if the End is near (and I won't say if I agree or not).

I expect, really, a big shift in culture and power in the world. Perhaps our friends to the south have run themselves off a cliff, and their friends from the south will grow in their place, or perhaps our friends from overseas will catch up, and cash in. Who can say?

Certainly though, we know who is being hit the hardest. Everything just takes a while to unfold.


Your assessment of the economic crisis coincides with my own. I have been interested in economics for several years and the crisis was obviously going to happen; it was just a question of when. It was obvious to even the most insouciant person that millions of people were living way beyond their means. I remember discussing this with my brother about two years ago and we both agreed that the world was heading for economic collapse. You are right in saying that politicians are using recession as a euphamism for depression with all of its connotations of the 1930s and that the full effect of the crisis has not yet been felt. At the moment the situation is still about economics but, as in the 1930s, when enough people have lost their jobs and are without financial support, the situation will rapidly move into its political phase. As in the last great depression, it could well end up with blood on the streets but at least it will be an interesting time to be living in; albeit a dangerous one.
As for your suggestion that there may be a shift in power from the US to elsewhere, it's still too early to say but, in this situation, anything is possible.

[JBI]

Your assessment of the economic crisis coincides with my own. I have been interested in economics for several years and the crisis was obviously going to happen; it was just a question of when. It was obvious to even the most insouciant person that millions of people were living way beyond their means. I remember discussing this with my brother about two years ago and we both agreed that the world was heading for economic collapse. You are right in saying that politicians are using recession as a euphamism for depression with all of its connotations of the 1930s and that the full effect of the crisis has not yet been felt. At the moment the situation is still about economics but, as in the 1930s, when enough people have lost their jobs and are without financial support, the situation will rapidly move into its political phase. As in the last great depression, it could well end up with blood on the streets but at least it will be an interesting time to be living in; albeit a dangerous one.
As for your suggestion that there may be a shift in power from the US to elsewhere, it's still too early to say but, in this situation, anything is possible.

I disagree, I don't think it is too early to say. I think it's becoming more and more clear every day. In terms of where people are, it would appear that some countries are better able to face what is about to escalate rapidly than others. American banks are in extremely shaky positions, whereas Canadian banks, though experiencing losses, are in relatively strong positions, and have no fear of going bankrupt, or of really needing a "bail out" (imagine, someone loaning the banks money!). But then again, I may be speculating. From what I understand though, the whole "international" situation comes from the fact that America has taken a fall, with all debts due and no cash to throw around. If, for instance, the now proposed Free Trade agreement between Canada and the EU goes through, I imagine that resources may be going elsewhere, and Canadian dependency for instance on the States will move elsewhere, and with it, The U.S.'s largest supply of natural resources.

If you take that away, what's really left? Manufacturing collapses, and those jobs go elsewhere. Taxes are either increased, or the government's debt escalates way out of hand. Tertiary and innovative industries disappear because of lack of money circulating, and the fact that The States aren't as technologically advanced as may seem, and what you get is a huge fall. There are historic presidents that can be looked at. Empire theories exist, which try to analyze what makes things like the Ottoman empire, the Roman empire, the French Empire, the British empire, and, even more recently, the USSR, which seems the best example. Virtually all empires fall. It's only a matter of time before all empires in general fall - the question really though, is whether this is the the beginning of the storm, or whether this is just an episode.

[*Classic*Charm*]

The government is trying to up tuition, that hurts, but my parents are both semi-retired, and all four of us are in school in one form or another, and work minimum wage, so there isn't too hard a setback. I'm waiting for things to get bad - and I mean real bad, like in the 1930s with movement and change, but so far nothing is really moving at all.

The tuition increase that's being proposed here is ridiculous. A 25% increase to boost the economy? I'd love to see the current percentages of students already on financial aid or with student loans, and the government has stated that an increase that much will not affect the number of applicants? I don't see how that's possible. I would imagine that not only would there be fewer applicants, but an increase in drop-outs as well.

To be honest, I really don't see this becoming The Great Depression II for Canada. As you mention, our banks are doing surprisingly well and we're not going to require the same bailouts as the States. I think the problem is that everyone sees what's happening in the U.S. and assumes that we're going to follow, and are making/ will make rash decisions.

As it is, both my parents are retired and have taken a significant hit from their investments, though at this point they're not concerned with the state of things in Canada. Personally, it's making it hard for me to find a summer job, which is going to affect paying for university. Luckily, I'm the only one left in school in my family.

[kilted exile]

I am quite fortunate in that where I work is somewhat insulated so far because the majority of our customer base is from a nearby nuclear power plant, which is a steady source of income & not going to be closing. I would hate to be in the Windsor/London area just now (I have heard talk of 25%drops in sales) Some hours have been cut back, but not really affecting me ( I am yearly salary, not hourly rate - what it does mean though is that as a manager I am working more unpaid overtime to make sure things still get done to the required level)

The summer may get bad as we are a tourist town also & will likely see a reduction in traffic (but also possibly an increase in people vacationing locally)

[Virgil]

I trust this isn't considered politics, because while the reasons for the crash include political positions, the crisis is economic, not political, and the main themes I'd like to explore are:

Has the crisis affected you?


All I knnow is I want my portfolio back to where it was. :bawling:

[Emil Miller]

All I knnow is I want my portfolio back to where it was. :bawling:

Hi Virgil,

Sorry about your portfolio, but your request is being echoed by literally millions of people around the globe right now.

[Mathor]

i got laid off a couple months ago. and i live in america. so that only spells bad things for my economic future. From age 18 to 21 i was a server in a restaurant and made about 1000 dollars a week. Then people stopped coming. And then my job was gone. And i tried to get a new job, but with all of the millions of people with no jobs it was kind of impossible. And then about a month ago I decided since my father offered me the opportunity to go to school and get an education i took him up on that, and that's what im doing currently. It's hard enough to get a job with a college education, it's impossible without one. And see a couple months ago i felt i was set for life. and i made a lot more than most people in my age group who had graduated college, so i didn't see the point of going to college. basically i got screwed like everyone else.

[Emmy Castrol]

I'm in Australia and work in financial services so I am directly affected by the financial crisis. My work hours have been cut back to part time (definately preferably to losing the job altogether, which I have seen happen to a lot of people here, mostly in the larger corporations where there is a distance between executive management and the administrative processer).

The funny thing is, the Australian economy and banking system is largely stable but because most of the work is service based, what is happening in the US has a huge impact here. For example, in November, when the US market went down the Australian market followed, usually by a larger percentage. However, if the Dow Jones went back up the next day, the ASX although it would follow the DJ, it never increased to the extent that the DJ did.

A lot of our clients have been affected by the crisis, to the extent that their portfolios are worth only 10% of what they started out with (due to geared portfolios) and some are at risk of losing their homes.

What I have noticed is that those who are less affected 'emotionally and psychologically' by the crisis are those who kept their lifestyles simple. They didn't borrow money to buy another car or to put a pool in their backyard. When they had excess funds, they just put it into their bank account and by the time the crisis hit, they have enough to see them through these difficult times.

I'm aware there are many who did not ever have the chance to buy luxury items who were still severely affected. However, they can still try to take pleasure in the little things - for example, nature usually is free.

My opinion is that this financial crisis was brought upon by greed; the greed of mortgage lenders and hedge fund managers is easy to understand but what people may miss is the greed of the ordinary 'mom and dad'. I didn't realise this until during a discussion with one of my favourite clients, who knew she should have diversified her portfolio but wanted to 'fast track' their wealth. This is a form of greed and because she was able to recognise this for herself, my respect (and pity) for her went up. I am really hoping that the stockmarket and economy turn around (for the good, not just the stops and starts we've been experiencing - fingers crossed for the latest stockmarket rises) because her home and the private school education of her children (which is a priority for her, she keeps the rest of her life simple) is at risk.

[Virgil]

My opinion is that this financial crisis was brought upon by greed; the greed of mortgage lenders and hedge fund managers is easy to understand but what people may miss is the greed of the ordinary 'mom and dad'. I didn't realise this until during a discussion with one of my favourite clients, who knew she should have diversified her portfolio but wanted to 'fast track' their wealth. This is a form of greed and because she was able to recognise this for herself, my respect (and pity) for her went up. I am really hoping that the stockmarket and economy turn around (for the good, not just the stops and starts we've been experiencing - fingers crossed for the latest stockmarket rises) because her home and the private school education of her children (which is a priority for her, she keeps the rest of her life simple) is at risk.

That is part of it, but part of it was a sincere attempt (at least in the US, I can't speak for other countries) to try to give poorer people who could never afford their own home in the past the opportunity at home ownership. Though compassionate, unfortunately it iwas misguided.

[Emmy Castrol]

That is interesting, Virgil, because you've made me realise that while it's so easy to look back on the crisis (due to hindsight) and the sub-prime with criticism, while times were still good there must have been many families out there who felt they had restored some self-pride by being able to partake in home ownership.

It's quite sad that there are some people who, just because of the way they were brought up and their reactions to how others may have treated them disrespectfully, don't believe that they are worthy or capable of achieving all that they want.

How do you change that?

[jon1jt]

I'm a former financier & banker who is currently a recruiter, so I think I have a good handle on what's going on and hopefully, how to make sure you come out the other end.

Many people are losing their jobs, but on the other side, some companies are still employing. The trisk is to know which one's which.

The first advice I'd give to anyone in any financial trouble is to talk to your financiers! In a time of widespread debt problems, banks and financiers will be very well disposed to people who admit to trouble before the bank goes looking for them.

I'm still trying to figure out why anyone would first seek the advice of financiers when they're a large reason why the world is in this mess. Swell idea, yeah. :brickwall

This crisis is slowly, slowly starting to open people's minds to the kind of political and economic system that they consider to be part of their "freedoms." I'm confident that in another 2000 years the world will move past this silly notion and posterity will look back on this civilization and its failures as nothing more than a blip in dreadful cycles that thence ceased the day the American flag's stripes and stars were replaced with a portrait of a newborn baby, an invention that even market capitalism was unable to surpass. ;)

[Chava]

Drop in sales at the store. People have started coming in, asking about which books they should read, after a half hour pitch they ask me to write the titles down, instead of buying them. I suspect they then go to Amazon. :rolleyes:

The banks are all going bust here, The big bank of Roskilde collapsed and all of its customers are being rejected at other banks. Very unfortunate for their businesses.

[Emil Miller]

I'm still trying to figure out why anyone would first seek the advice of financiers when they're a large reason why the world is in this mess. Swell idea, yeah. :

The UK government has suggested that some of the now unemployed banking community could be used to teach maths in schools. There is an amusing cartoon here showing a man holding a newspaper with the headline CITY BROKERS TO TEACH MATHS, and the man's son is saying to his father "Dad the Upper Fith's gone into liquidation"


That is part of it, but part of it was a sincere attempt (at least in the US, I can't speak for other countries) to try to give poorer people who could never afford their own home in the past the opportunity at home ownership. Though compassionate, unfortunately it iwas misguided.

Yes it was misguided. When I first saw the words 'sub-prime' being bandied about in the financial press a few years back I was immediately suspicious and in my mind substituted the words 'bad debt'. However, the situation would never have reached the proportion it has if it had not been for greedy and stupid financiers using sub-prime as a vehicle for taking on massive debt so that they could award themselves colossal bonuses. The failure of the world's financial regulatory authorities to stop this irresponsible behaviour merely encouraged the banks to carry on along the road to perdition. Now it really is pay back time and God help us all.

[Emmy Castrol]

Drop in sales at the store. People have started coming in, asking about which books they should read, after a half hour pitch they ask me to write the titles down, instead of buying them. I suspect they then go to Amazon. :rolleyes:

The banks are all going bust here, The big bank of Roskilde collapsed and all of its customers are being rejected at other banks. Very unfortunate for their businesses.

That's strange. I would have thought that sales for books, dvds and entertainment would increase during times of recession as people cut down on expensive holidays but still require some form of leisure to keep sane.

Kind of like McDonalds and fast food instead of fine dining.

[1n50mn14]

I work with horses, usually on a live-in basis, and plan to return to the U.K in September (with an assured job, weekly salaray, and room and board inclusive in the package.) I've noticed on the job-site I use that there are far more jobs, even within the horse industry, still hiring in the U.K than in Canada.

Rich people will always need somebody to shovel their horse poo, and get them ready for shows, races, etc. Think about Seabiscuit.

Thank God.

[TheFifthElement]

I got a cheaper mortgage and no longer need to move house.

1200 people are getting laid off at my company after they posted one of the best performances in years, and maintained a consistent (not great, but consistent) result on the stock exchange. I think it was one of the top 3 performing shares of the year.

My town centre is awash with empty shops and closing down sales.

But at the same time it's a fantastic time for innovation and opportunity. The world for your taking if you can think creatively. Not just doing the same old thing, more of the same old rubbish no one wants. Something different. Something better maybe?

A time to connect with something that means something. Something other than consumption and acquisition.

Right now anything could happen. Isn't that exciting :D

[Emil Miller]

I got a cheaper mortgage and no longer need to move house.

1200 people are getting laid off at my company after they posted one of the best performances in years, and maintained a consistent (not great, but consistent) result on the stock exchange. I think it was one of the top 3 performing shares of the year.

My town centre is awash with empty shops and closing down sales.

But at the same time it's a fantastic time for innovation and opportunity. The world for your taking if you can think creatively. Not just doing the same old thing, more of the same old rubbish no one wants. Something different. Something better maybe?

A time to connect with something that means something. Something other than consumption and acquisition.

Right now anything could happen. Isn't that exciting :D


Looking at what happened in Germany in the 1930s, it might get a bit too exciting.

[jon1jt]

Looking at what happened in Germany in the 1930s, it might get a bit too exciting.

It is an interesting parallel when you consider the rising food cost in America next to Hitler pointing to the same condition at a time Germans were going homeless and hungry. Seems Americans have turned to a different villain, though a couple years earlier they were worshipping these super heroes of progress.

[higley]

Surprisingly, people are still willing to shell out four dollars for a large mocha at my coffee shop. Although I won't say as much to them, I'd rather have the two gallons of gas that four bucks would get me. But then again, I get my coffee for free so I can hardly talk. ;)

I am concerned about graduating this May; as much as people have cut down on frills, it seems implausible that I will be tripping over illustration freelance opportunities left and right. On the other hand, companies looking to boost their sales might do so through increasing their aesthetic appeal--meaning there's hope for me yet. And so long as folks teach kids to read, there will be books to prettify.

I've noticed that while some chain retails have closed shop around my neck of the woods, mom and pop shops have done extremely well.

[librarius_qui]

I trust this isn't considered politics, because while the reasons for the crash include political positions, the crisis is economic, not political, and the main themes I'd like to explore are:

Has the crisis affected you? (1)

How to survive it! (2)




1. No. (Not yet. Not that I can feel it ...) Everyone around's afraid, though, so, in a way, I can say that it has affected my surroundings.

2. It isn't a question ... If it were, I might have answer(s). Are you surviving it?


Libri#

[jon1jt]

I am concerned about graduating this May; as much as people have cut down on frills, it seems implausible that I will be tripping over illustration freelance opportunities left and right. On the other hand, companies looking to boost their sales might do so through increasing their aesthetic appeal--meaning there's hope for me yet. And so long as folks teach kids to read, there will be books to prettify.

Prettifying books is a career?? Heck, then I wanna paint stuff on the wings of white butterflies and get paid for it, yippeeeee! :p

[higley]

Prettifying books is a career?? Heck, then I wanna paint stuff on the wings of white butterflies and get paid for it, yippeeeee! :p

Yes, I'll even have a degree in prettifying!

[The Atheist]

The real test will be this summer -- I live in essentially a tourist town whose main industry is its natural beauty that brings so many people here in the summer. If summer tourism slows significantly, I think this town will be closer to "devastated" than to merely "affected" as it is now.

Even worse, that's our winter. Fortunately, almost all of our electricity is provided by nature at no cost. (Hydro-electric)


A common case I hear of how people have gotten so critically ill these days: patients have gotten laid off their jobs, lack money and insurance, and cannot afford to see a doctor on an outpatient basis; instead, they try to 'tough it out' and dismiss whatever illness they have as a 'fluke,' and end up in really rough shape.

That's terrible, and it makes matters worse, because they use far more resources than if they'd done something in the forst place.


As for your suggestion that there may be a shift in power from the US to elsewhere, it's still too early to say but, in this situation, anything is possible.

Can we leave that, because that is politics.


All I knnow is I want my portfolio back to where it was. :bawling:

Give it 20 or so years and it will be.


My opinion is that this financial crisis was brought upon by greed; the greed of mortgage lenders and hedge fund managers is easy to understand but what people may miss is the greed of the ordinary 'mom and dad'.

No question.


That is part of it, but part of it was a sincere attempt (at least in the US, I can't speak for other countries) to try to give poorer people who could never afford their own home in the past the opportunity at home ownership. Though compassionate, unfortunately it iwas misguided.

Nope, no way, no how was any kind of altruistic motive involved - it was pure greed; from the banks and hedge funds, down through investors to people who saw easy money, the entire boom was driven by greed.

Rule #1 was always that if something looked too good to be true, it usually was.

The idea of minimum-wage workers becoming property millionaires on the back of leveraged buying of properties nobody wanted to live was always too good to be true, according to my radar.

I have the fortunate ability to say "I told you so" as I advised people in a newspaper interview in July 2008 that trouble was hitting, so I can at least be smug while I starve!

:D


I'm still trying to figure out why anyone would first seek the advice of financiers when they're a large reason why the world is in this mess. Swell idea, yeah. :brickwall

Well, if you owe them money, it's not going to matter whether you like 'em or not, but I can assure anyone in financial difficulties that if they have loans, they should talk to the loan provider immediately.

Check out mortgage defaulters - those who have had their houses sold underneath them are those who haven't tried to re-arrange their finances.


Rich people will always need somebody to shovel their horse poo, and get them ready for shows, races, etc. Think about Seabiscuit.

Thank God.

Not just rich people, either. Lots of people hope to win a fortune at the track, so keep betting turnover high.


But at the same time it's a fantastic time for innovation and opportunity. The world for your taking if you can think creatively. Not just doing the same old thing, more of the same old rubbish no one wants. Something different. Something better maybe?

This is a great point - I've been trying to get people to look at it as an opportunity. Some will.


1. No. (Not yet. Not that I can feel it ...) Everyone around's afraid, though, so, in a way, I can say that it has affected my surroundings.

2. It isn't a question ... If it were, I might have answer(s). Are you surviving it?


Libri#

Yeah, I'm going ok......... so far.

[Madhuri]

I read this quote somewhere 'Recession is when your neighbour loses his job. Depression is when you lose yours.'

I have not lost mine, nor has my neighbour. It is going okay so far.

In our company, there have been no lay-offs in the account that I work in, but I know other accounts have laid off.

A couple of weeks ago the executive team held an all employee meeting, and they gave assurance that there will be no lay-offs, but there will be salary freeze, no increments, no other benefits, but you get to keep your job.

I have my doubts, though, because companies are always profit driven, and at any point they can go back to giving the pink slip.

They were also talking about cost cutting, even in smallest things like switching off lights, etc. I am okay with such an initiative. But, yesterday we got this news that each team will get some team fund to spend as they like. I was wondering at one point they are talking about cost cutting and then this :confused:

The company can say good bye, but we have another sword on our heads, that is of the client. If the client says they cannot afford so many resources, they can lay us off, even though the company has promised something else.

[SleepyWitch]

Over here it's not that bad. There are negotiations to bail out Opel (they are part of GM and the GM headquarters drained lots of money out of Opel). Some banks had to be partly nationalized. Hypo Real Estate (a bank) had to be bailed out because lots of municipal governments depend on it for investments in urban infrastructure. There is short-time work at lots of companies.
But people don't really fret about the economic crisis. They spend as much on shopping as they used to. However, people stay at home more and have a cozy games night with friends rather than travelling.
I don't know if that's because the credit crunch hasn't really hit us yet, or because conditions are different here. E.g. some of the banks went bust because they bought foul shares off American banks. But the housing market and people's spending habits have always been different over here. Basically, people don't take out as many mortgages as the English. You either save up till you can buy your own house, or you stay in the same house till your mortgage is payed off. There's not so much re-selling and moving house. Plus, more people live in rented flats because they can't afford their own house. So normally people who can't afford to buy a house or who can't pay a mortgage with a high interest rate, won't opt for one of those high-risk, low-rate mortgages that triggered the whole credit crunch. The same goes for consumption, if you can't afford something you don't buy it. Of course, lots of teenagers pile up millions of debts in mobile phone bills. But normally, if you don't have the cash or savings to buy something (or to clear your debit/credit card at the end of the months), you don't buy it.

[Joreads]

1) Well it hasn't directly affected me yet but it will eventully affect everyone we are yet to reach the bottom of the wave IMO

2) Spend only what you need to and keep the rest under the bed and out of the bank.

[kasie]

So far, so good - I have two pensions that have not been affected. I also have interest from savings that at the moment is protected but the scheme in which they were invested comes to the end of its term in a few months time and there will be nowhere to move the money to get anywhere near the rate of interest these schemes offered, so my income will soon take a downturn.

Inflation is affecting me the most - although my pensions are index-linked, the annual increase comes nowhere near countering the effect of increased prices. I can practise all sorts of economies on my personal spending but I still have to pay for power, water, rates, heating. I would sell my house and downsize to a more economic home - but my house would (probably) not sell in the present housing market! I think the economic situation will not really hit me until later in the year by which time - hopefully - things will be starting to change for the better.

My grandfather-in-law would have approved of the idea of keeping savings in a sock under the mattress!

[The Atheist]

1) Well it hasn't directly affected me yet but it will eventully affect everyone we are yet to reach the bottom of the wave IMO

2) Spend only what you need to and keep the rest under the bed and out of the bank.

Well, if people put your #2 into practice, your #1 will come true - the bottom is still further down.

Hoarding cash is extremely bad for the economy; it hurts manufacturers, retailers and ourselves. I'm not suggesting you spend it, but Australian banks are all among the world's most stable, and even a small interest rate is better than none. While cash is under your mattress, it can't work, but in a bank it can, and may help provide the impetus for growth - which we desperately need.

[Chava]

Surprisingly, people are still willing to shell out four dollars for a large mocha at my coffee shop.

Just four dollars? Geez, in this part of the world that wont even buy you a cup of tea at a coffeeshop. Maybe that's why I'm not feeling the crisis yet, everything has always been insanely expensive here. :)

I had an american friend visit and he was talking about grabbing a dollar meal somewhere and I had to quiety explain that a burger and fries at McD would set him back 10 dollars. Which is why one should always cook their own food when in Denmark.

[librarius_qui]

a playmobil box that costs around US$15 in the internet (like # 4295) is found in Carioca common toystores for R$ 109,...

It's a freaks thing! I should put a bomb in all the Carioca toystores! What are they thinking??!!

Still, this is the reallity of the Brasilian economy: truth is that our salaries are too low, this is why products from other countries may reach absurd prices, here.

Food, however (which is what matters ...) is in a reasonable (& possible) cost, thank my god!

I'll survive without playmo' :bawling: ... (I can't buy even through the internet, because my new job doesn't make regular money at the end of the month, so, I have no planning perspectives. And no savings. Actually, it was a crazy thing to leave for this job. However, at least, I'm doing what I like to. Once I begin making regular money from it, it'll be ... almost heaven.)


:crash:
Libri#

[Emil Miller]

Over here it's not that bad. There are negotiations to bail out Opel (they are part of GM and the GM headquarters drained lots of money out of Opel). Some banks had to be partly nationalized. Hypo Real Estate (a bank) had to be bailed out because lots of municipal governments depend on it for investments in urban infrastructure. There is short-time work at lots of companies.
But people don't really fret about the economic crisis. They spend as much on shopping as they used to. However, people stay at home more and have a cozy games night with friends rather than travelling.
I don't know if that's because the credit crunch hasn't really hit us yet, or because conditions are different here. E.g. some of the banks went bust because they bought foul shares off American banks. But the housing market and people's spending habits have always been different over here. Basically, people don't take out as many mortgages as the English. You either save up till you can buy your own house, or you stay in the same house till your mortgage is payed off. There's not so much re-selling and moving house. Plus, more people live in rented flats because they can't afford their own house. So normally people who can't afford to buy a house or who can't pay a mortgage with a high interest rate, won't opt for one of those high-risk, low-rate mortgages that triggered the whole credit crunch. The same goes for consumption, if you can't afford something you don't buy it. Of course, lots of teenagers pile up millions of debts in mobile phone bills. But normally, if you don't have the cash or savings to buy something (or to clear your debit/credit card at the end of the months), you don't buy it.

One of the many things I admire about the Germans is that they are very sensible about money. I believe it was Bismarck who introduced the system double book keeping and, in my experience, Germans show that since the great inflation of the1920s, they have maintained careful managememt of their financial affairs. One can argue whether the rate of exchange of one Deutschmark for one Ostmark was right when Germany was re-unified, but there is no doubt that it put the Deutschmark under massive strain and weakened the whole economic structure of the country.
However, Sleepy Witch's assertion that it's not that bad, belies a report that was published recently in Der Spiegel on the plight of the unemployed in the former GDR where the situation is critical to the point that many people, when polled, said thay regretted the collapse of the Soviet Union and the East German regime in consequence. The other side of the coin is that ultra right-wing political parties are gaining support in the former GDR.
The current economic crash is both frightening and fascinating to watch but I think that Germany will probably emerge stronger than others from the debacle.

[Joreads]

Well, if people put your #2 into practice, your #1 will come true - the bottom is still further down.

Hoarding cash is extremely bad for the economy; it hurts manufacturers, retailers and ourselves. I'm not suggesting you spend it, but Australian banks are all among the world's most stable, and even a small interest rate is better than none. While cash is under your mattress, it can't work, but in a bank it can, and may help provide the impetus for growth - which we desperately need.

I should have clarified I didn't mean all of your cash. What ever money you take out of the bank on a weekly or monthly basis spend only what you need to and keep the rest. What ever you would usually save or leave in the bank use to pay down your debt such as home loans and credit cards. Then get rid of the credit cards.

While I agree that people need to put some of their money into the banks they need to be careful where they put it no good putting it into a bank that is going to go belly up. We are lucky here is Australia our banking system is one of the strongest in the world but other countries are not so luck.

We also need to be extremely careful aobut the growth that we get and where we get it from lets not forget that the sub prime mess was the result of financial institutions. Banks should not be relied on to do the right thing clearly they have no idea what that is they are guided by the almighty dollar.

[imthefoolonthehill]

This crisis has made it really hard for me to find work. I'll graduate in May. I've got good references and good experience, but it is hard to find even an entry level position right now. I also lost a lot of money in stock, and several close family members have been laid off as their companies close.

[Annamariah]

Everything costs much more than it used to even a year ago (especially food), but I haven't had any financial problems yet. The only thing really bothering me is that finding a summer job is becoming harder and harder because of this whole crisis. If I can't work during the summer, I just might be facing some financial problems next winter, especially as I have no idea if I'll get a student apartment when I move this spring or not. If I won't and have to get an apartment from the private sector, the rent will be about two or three times as high as it is now...

[SleepyWitch]

However, Sleepy Witch's assertion that it's not that bad, belies a report that was published recently in Der Spiegel on the plight of the unemployed in the former GDR where the situation is critical to the point that many people, when polled, said thay regretted the collapse of the Soviet Union and the East German regime in consequence. The other side of the coin is that ultra right-wing political parties are gaining support in the former GDR.


yep, you're right. but unemployment and support for neo-nazis was rampant in the East even before the credit crunch. plus, unemployment benefits in both the East and West are a shame but that's been a problem for quite a while.

[Emmy Castrol]

This crisis has made it really hard for me to find work. I'll graduate in May. I've got good references and good experience, but it is hard to find even an entry level position right now. I also lost a lot of money in stock, and several close family members have been laid off as their companies close.

How about the option of continuing study? They give quite generous scholarships these days (relative to a student; I still find an entry level administrative position pays more but if they aren't there, they just aren't there).

Or you could always write a book while you wait for the economy to rise again and hope the book becomes a bestseller...

[subterranean]

70% of my project scope have been cut off because of the crisis. After June 2009, I need to switch to other area in the project. Also, since the crisis, all trainings and personal development have been removed until further notice. Anything for cust cotting is yes, anything with expense is no.

[Chava]

70% of my project scope have been cut off because of the crisis. After June 2009, I need to switch to other area in the project. Also, since the crisis, all trainings and personal development have been removed until further notice. Anything for cust cotting is yes, anything with expense is no.

Wow, that's pretty bad!

[ClaesGefvenberg]

The situation is roughly the same for everyone in our line of work (Steel industry): Our orders are down, and most of us are downsizing to adapt to the new situation. My personal line of work is quality engineering, which by and large involves getting things to flow efficiently, thereby saving money.

Thus, I have more to do than ever, which usually is what happens at times like this. This does not make me feel secure, however: Nobody is, and the only course of action available is to go flat out, doing everything you can, to the best of your ability... As usual. :cool:

/Claes

[Emil Miller]

1) Spend only what you need to and keep the rest under the bed and out of the bank.

Yes, this might have been an option before WW11, but post-war 'liberal' democracies, i.e. those that believe in rehabilitation, rather than punishment for criminals, are an inducement to burglary and, therefore, your matress would be even more unsafe than with the present crop of dubious bankers.

[motherhubbard]

I was not taken by surprise by this turn of events. About three years I became very concerned with the state of the economy. My husband and I took some steps to protect ourselves and it’s made a big difference for us.

One thing that I have noticed is that some things are easier for us to purchase. We recently bought a used car and a laptop computer from two different cash strapped people. We were able to get amazing deals because we were paying with cash. I’ve been in need of both of these items, but I didn’t want to pay the prices that were being asked a year ago.

[kasie]

Yes, this might have been an option before WW11, but post-war 'liberal' democracies, i.e. those that believe in rehabilitation, rather than punishment for criminals, are an inducement to burglary and, therefore, your matress would be even more unsafe than with the present crop of dubious bankers.


Good grief, BB - we're not going to tell our friendly local burglars our worldly wealth is stashed in a sock under the mattress. What do you think we are? Stupid? :rolleyes:

[Emil Miller]

I was not taken by surprise by this turn of events. About three years I became very concerned with the state of the economy. My husband and I took some steps to protect ourselves and it’s made a big difference for us.

One thing that I have noticed is that some things are easier for us to purchase. We recently bought a used car and a laptop computer from two different cash strapped people. We were able to get amazing deals because we were paying with cash. I’ve been in need of both of these items, but I didn’t want to pay the prices that were being asked a year ago.

Motherhubbard,

If the rest of the world community were as wise as yourself, we would not have got to where we are now.

Incidentally, thanks for reviving this thread which is a beacon of genuine interest amongst the trivia that makes up most of this forum.


Good grief, BB - we're not going to tell our friendly local burglars our worldly wealth is stashed in a sock under the mattress. What do you think we are? Stupid? :rolleyes:

It is a well known fact that during times of extreme economic hardship criminal activity rises. You may not be stupid but neither are the criminals.

[The Atheist]

I was not taken by surprise by this turn of events. About three years I became very concerned with the state of the economy. My husband and I took some steps to protect ourselves and it’s made a big difference for us.

Good for you!

:thumbs_up

[Gustavo L.]

Things haven’t changed much in my life. Maybe because here in Brazil we have been trough a sucession of crisis since I can remember (I’m 28). Things here are nowhere as bad as they were in mid-eighties, when government confiscated the investments of millions of families (including mine) and milk and meat couldn’t be found in supermarkets at the city where I lived (we had to buy it at a farm), or as they were in the nineties or in the beginning of this decade, when crime reached its peak and some banks went bankrupt.

Our economy did pretty well in the last years and, though we have been affected by the crisis, economic growth should resume in the next months. I’m not very optimistic, though. Even if Brazil is going to be a major power in a new world order, culture’s future seems somber here. Brazilian economy has been rising in the last eight years, but book sellings have decreased by half.

[Chava]

A book was recently published about the crack of my local bank. It was a national scandal, as this bank was doing really well, and now featured in most towns. The bank sent out letters recomending people to invest in it, and even offered cheap rates to borrow money to invest back in the bank. A friend of mine put a load of money he inherited into it's stocks, and three days later they went bankrupt. Working at the bookstore where lots of people are angrily purchasing this book, it sure is bcoming obvious that others have lost a lot of money, even millions of kroner (1 dollar to 5.5 kroner) on investing in this bank.
Furthermore, the bank had lent money to a lot of small local businesses that cannot get funding elsewhere and have been rejsected by all the other banks because what they're doing is unprofitable. Too bad no one told them that before they invesed their lives and fortunes into it!

[Emil Miller]

A book was recently published about the crack of my local bank. It was a national scandal, as this bank was doing really well, and now featured in most towns. The bank sent out letters recomending people to invest in it, and even offered cheap rates to borrow money to invest back in the bank. A friend of mine put a load of money he inherited into it's stocks, and three days later they went bankrupt. Working at the bookstore where lots of people are angrily purchasing this book, it sure is bcoming obvious that others have lost a lot of money, even millions of kroner (1 dollar to 5.5 kroner) on investing in this bank.
Furthermore, the bank had lent money to a lot of small local businesses that cannot get funding elsewhere and have been rejsected by all the other banks because what they're doing is unprofitable. Too bad no one told them that before they invesed their lives and fortunes into it!

It is interesting that so many people didn't, or didn't want to, see the global crisis coming. However, your friend who invested in the failed bank is not to blame, because nobody could tell when it would come and the banks might have been able to keep the whole show on the road for some time, nobody could foresee the actual time of the crash.The fault lies with the regulatory authorities who relaxed controls on the banks in the name of greater competition and thereby allowed greedy and often inexperienced staff to make loans that were not worth the paper they were printed on. What makes the crisis so deplorable is that those same people were able to claim huge bonuses on the strength ( weakness ) of increased business for their bank.
Now, millions of people worldwide are losing their jobs and total collapse is just around the corner.

[MissScarlett]

This recession has affected me because a lot of my income comes from investments and returns from those are down dramatically. In other ways, it hasn't affected me - yet.

I've taken steps to help myself by starting my own business. That may seem strange in this bad economy, but I'm not selling new cars or real estate. I design and sell street wear and the people who buy street wear were either rich or poor to begin with, so they're going to keep on buying street wear even in tough economic times. I'm planning on going to the Las Vegas Magic show in late August, but I'll have my clothes in stores before then.

I just hope, for my sake and everyone else's, this crisis ends sooner rather than later. I'm preparing for a long haul, but I hope it doesn't come to that.

[Emil Miller]

This recession has affected me because a lot of my income comes from investments and returns from those are down dramatically. In other ways, it hasn't affected me - yet.

I've taken steps to help myself by starting my own business. That may seem strange in this bad economy, but I'm not selling new cars or real estate. I design and sell street wear and the people who buy street wear were either rich or poor to begin with, so they're going to keep on buying street wear even in tough economic times. I'm planning on going to the Las Vegas Magic show in late August, but I'll have my clothes in stores before then.

I just hope, for my sake and everyone else's, this crisis ends sooner rather than later. I'm preparing for a long haul, but I hope it doesn't come to that.

It is interesting to see someone who is prepared to turn their face to the storm but, given that you have already lost much of your income from investments, why have you decided to go into business when the odds against are so great?