recession
Posted By: Eileen on 2008-06-19
In Reply to: This country is definitely in trouble.... - anonymissy
I agree with you. We live the same way, no CC and no car payments. My husband is disabled and he helps me and we have a 25 daughter still at home who buys the food. We can honestly say that God does provide for us. We're not rich, but the recession is not really hurting us that much, other than we don't like the increase in gas and food, but so far, so good, we have some savings. We do give regular our tithes to the church, 10% as was in the O.T. and God blesses us. If more people followed these Bible principles, they would do better.
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Not just gas prices, but the recession sure will.
We are staying home this year and saving every dime we can. Our fed and state refunds went right into savings, and our "stimulus" rebate will too.
Recession/depression
I think we are at a "stuck" point, where it could shoot up or fall down into a rescession. I hope to God, it shoots up. I heard gas isn't coming down til after the first of the year (2009)
recession/depression
I think Michigan is already in a recession. It is just sickening to see all the homes that have been foreclosed. Everytime you watch the news or read a paper it is just more people losing their jobs. I don't know how much more people here can take. Hopefully things pick up soon!
Recession Explained
THE CURRENT GLOBAL ECONOMIC CRISIS EXPLAINED
Adam is the proprietor of a fast food restaurant in New York. Sales are low and, in order to increase them, he comes up with a plan to allow his customers to eat now and pay later. He keeps track of the meals consumed on a ledger.
Word gets around and as a result increasing numbers of customers flock to restaurant. The suppliers are delighted and are very willing to sell more and more raw materials for the meals he prepares. Adam shows them his ledger of receivables and they extend him credit.
A young and dynamic customer service consultant at the local bank recognizes these customer debts as valuable future assets and gives Adam a credit line and then increases Adams' borrowing limit.
Taking advantage of his customers' freedom from immediate payment constraints, Adam jacks up the prices of his Burgers and Shakes. Customers dont mind as they are not required to pay on the spot. Sales volume increases massively; Banks and suppliers lend more; Adam opens more outlets. He sees no reason for undue concern since he has the debts of the customers as collateral.
At the bank's corporate headquarters, expert bankers recognize Adams' customer loans as assets and transform these customer assets into BONDS. These negotiable instruments are given exotic names such as FISHNCHIPSBOND, DOUBLEBACONBOND, BEEFBURRITOBOND AND CHOCOLATESHAKEBOND. These securities are then listed on the Stock Exchange and traded on markets worldwide. No one really understands what the names mean and how the securities are guaranteed but, nevertheless, as their prices continuously climb, the securities become top-selling items.
One day, although the prices are still climbing, a credit risk manager of the bank decides that the time has come to demand payment of one of the debts incurred by Adam. Adam in turn asks his clients to pay up. One by one they refuse; the clients cannot pay back the debts. Adam refuses to serve them any more. The clients stop coming.
Adam is really screwed now. He cannot fulfill his loan obligations and therefore claims bankruptcy. All Bonds drop in price by between 80 to 95%.
The suppliers of Adam, having granted generous payment due dates and having invested in the securities are faced with similar problems. The meat supplier defaults on payment to the sheep and cattle supplier and claims bankruptcy. The Cheese supplier is taken over by a competitor; Adam lays off the cook and staff.. Bankruptcies soar, unemployment mushrooms.
The bank that lent the money in the first place is set to collapse. It is saved by the Government following dramatic round-the-clock consultations by leaders from the governing political parties with Adam commuting back and forth in his Executive jet and Mercedes 500SEL, brokering the deal.
The funds required to save the economic collapse are obtained by a tax levied on the citizens, most of whom do not eat Burgers or Shakes.
UNDERSTOOD?
I live in Michigan....and yes, we are in a recession. sm
Regardless of what the drive-by media says, we are in a full-fledged recession. Our governor even signed legislation giving big breaks to movie companies who come to Michigan to film their movies. Well that might be alright for the east side of the state, but that doesn't help us on the west side of the state. Electrolux and Bissell to name a few were only the tip of the iceberg. Our schools are going south in a handbasket also. Things just don't look good for Michigan. Especially now that gas is over $4 a gallon. I am predicting $5 by the end of the month, first part of July and any tourism dollars that would be spent here by out of state people or traveling locals, will now be kept at home. Michigan needs help, but then don't we all.
MI's been in it's own one-state recession for years
All forgotten here. Rumor has it MI was once a super-power, but not in my life-time. Boarded up, gravitti-ridden, poverty-stricken. Highest in unemployment, top-ten in foreclosures, top-ten in high gas prices. Our warted governor certainly is not spending our tax dollars wisely. My only salvation has been to not get in over my head. I drive a $700 car and bought my house for 13K. Gotta love the clean beaches, too.
POLL: Are we headed for a recession/depression?
Do you think we are headed there or already there. Some people have told me they think it is going to get really bad like during the great depression. opinions?
Haven't you heard? We're in a recession and/or depression?
so, why would there be a raise in benefits if there is no inflation?
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