Is anyone watching the Dow?

[doodlebugg 10]

and what about any other microeconomic effects? like, is this gonna affect me if in my daily purchases for food, or something not related to credit cards or loans?

Payroll in some companies may be in jeapordy because a lot of companies sometimes need a business line of credit to fund their payroll and these lines of credit will go bye bye.

If your company holds a lot of the stocks/bonds that are affected then there could be layoffs as a result.

Small businesses like mom and pop stores could fold due to lack of credit.

Say goodbye to home improvement loans which means people in the construction business will be hard hit.

There's more but that's some scarey stuff right there!

[caybee 21]

My biggest concern is inflation. We'll stay in our little apartment, cheapest around here anyway, and we won't take the car loan we've been considering. We have room to cut back a bit more on grocery costs if those go up. Moved my 401(k) to lowest risk when I changed jobs. I think both our jobs are pretty stable, but who knows... This could get interesting.

[sly_wolf 199]

and what about any other microeconomic effects? like, is this gonna affect me if in my daily purchases for food, or something not related to credit cards or loans?

Unless we get some good news, yes it will come to that. The average Joe always looses the most.

Sly

Also, many people are seeing the bailout as being just for Wall Street. They dont realize there is much more at stake. The average person has not been properly informed (like usual).

Sly

[sly_wolf 199]

What about the all the talk about the "politics of fear"?

Dont listen to the politicians. In this case listen to knowledgable business people.

Sly

[Trumplestiltskin 5,791]

What about the all the talk about the "politics of fear"?

Well I was watching the news before work this morning and Bush was saying how he needed the bill to pass, and how anyone who didn't want to see economic hardships in their community should encourage their local lawmakers to support the bill. He might be right about the need to pass the bill, but its obvious that he was using fear to justify it.

My biggest concern is inflation. We'll stay in our little apartment, cheapest around here anyway, and we won't take the car loan we've been considering. We have room to cut back a bit more on grocery costs if those go up. Moved my 401(k) to lowest risk when I changed jobs. I think both our jobs are pretty stable, but who knows... This could get interesting.

Yeah we'll be looking for a new place when our contract expires in Febuary. Our landlord has a sub-prime loan on the house, and was hoping that the market would stabilise by the end of the year.

[sweet_peach 0]

Sounds good to me. The prices of homes should come down to realistic price levels.

If you bought a house in the last 2 or 3 years, sux to be you.

perfectly said

[LaL 418]

Sounds good to me. The prices of homes should come down to realistic price levels.

If you bought a house in the last 2 or 3 years, sux to be you.

perfectly said

No, not really as this is so much bigger than home prices!

[one...two...tree 2,762]

yea, isnt people taking their money out of the banks making it worse? i mean, is not that a lot of people have more than 100k dollars in savings to not be protected by the FDIC insurance...

Yes. That's what did WaMu in....something like 17b in cash was withdrawn. People should keep their money in their bank, otherwise we could be facing another economic depression.

[doodlebugg 10]

Sounds good to me. The prices of homes should come down to realistic price levels.

If you bought a house in the last 2 or 3 years, sux to be you.

perfectly said

No, not really as this is so much bigger than home prices!

NOt only that but people who have refinanced taking advantage of the rising home prices now have mortgages worth more than their home.

[SpiritAlight 1]

NPR just had some news....the DOW down 550 points.

Are we having fun yet?

Look I really do not think we need some corporations to make our world go round.

The greed has caused this kerfuffle.

It's time to let it collapse and re-invent it better...let it work for the people....not just a few rich guys.

[IAMX 3,055]

yea, isnt people taking their money out of the banks making it worse? i mean, is not that a lot of people have more than 100k dollars in savings to not be protected by the FDIC insurance...

Yes. That's what did WaMu in....something like 17b in cash was withdrawn. People should keep their money in their bank, otherwise we could be facing another economic depression.

Heh, I'm waiting to see if my direct deposit goes into the bank as scheduled tomorrow.

I have to pull the money out anyways if I get this place to move into. If there's any problems with this (as I do have a credit card payment to make with said money) I will find a way to get my money and shut down both my bank and credit accounts with them. I doubt they want this, especially after being bought out, so I don't see myself having many issues.

And quite honestly this economic prosperity based upon excess consumption was about to come crashing down anyways.

Good timing too, I'm thinking about a house. I hope the economy crashes much harder than this.

Edited September 29, 2008 by SRVT

[AlHayatZween 2]

It's time to let it collapse and re-invent it better...let it work for the people....not just a few rich guys.

Could be... In times of great crisis comes innovation...or so they say... let's hope so...

Sometimes i wonder if we are still the great country of innovation and dreams... like maybe we've fatigued out, as a people.

i hope my husband doesn't lose his job.

[sly_wolf 199]

NPR just had some news....the DOW down 550 points.

Are we having fun yet?

Look I really do not think we need some corporations to make our world go round.

The greed has caused this kerfuffle.

It's time to let it collapse and re-invent it better...let it work for the people....not just a few rich guys.

The problem with a collapse is that it will mainly affect the average guy ... always the middle class. The rich have the resources to bounce back .

... never any skin off there back.

Sly

[Dan J 277]

With or without a bailout, we would be dealing with economic consequences.

With a bailout, since most of the money would be borrowed, the value of the dollar will fall. We will see inflation in the cost of goods across the board. There is no guarantee that a bailout would even stabilize the economy. We may stabilize the banking side of things, but we wont address shrinking discretionary incomes which drive the economy with purchases of goods and services.

[Trompe le Monde 1,107]

To be perfectly honest, I wasn't sold on the bailout, which they tried to ram through more quickly than the patriot act which I think most people agree was not given the scrutiny it deserved. There seem to be a lot of economists who agree and believe it would not work because it does no sufficiently address the practices that made it necessary in the first palce.

I smelled bull$hit when Paulsen (ex CEO of Gioldman Sachs no less), who was insisting last week that it be approved or we would face economic apocalypse stated that caps on executive compensation would be a "dealbreaker." Hang on - I thought the economy was going to implode? The executives would prefer economic apocalypse to not getting the appropriate severance packages? How can this be so?