Have you cut your spending in anticipation of an Economic Recession?

[KevK]

There will not be a recession in 2008 or 2009 for that matter. What I redict there WILL be is inflation- look at my post from a week ago and look at this weeks inflation numbers. Inflation will run 5 to 8% next year and 10 to 12% in 2009 THEN the Fed will throw on the brakes and a nasty recession will follow in late 2009 or early 2010. This recession will result in the doubling or more of the unemployment rate to about 10 to 12%

[Joe_Ryder]

This is where it gets sticky. Saving money and sitting on it is a big loss. When the economy tanks, so will the value of the dollar.

Civilizations and their economies come and go but gold is always gold.

[questioner2]

I have been watching the poll on this survey and the percentage of nervous people continues to increase. I suspect that as CNBC and other 24 Hour News Channels talk more and more about the recession more and more people will be nervous.

I suspect that if the economy does start to slide the news will hype the stories of people losing their jobs and businesses starting to suffer, and will work everyone into a tissy. I think they will have everyone believing that we are in a 1930s style depression.

[KevK]

Originally Posted by questioner2

I have been watching the poll on this survey and the percentage of nervous people continues to increase. I suspect that as CNBC and other 24 Hour News Channels talk more and more about the recession more and more people will be nervous.

I suspect that if the economy does start to slide the news will hype the stories of people losing their jobs and businesses starting to suffer, and will work everyone into a tissy. I think they will have everyone believing that we are in a 1930s style depression.

Apparently they are not too nervous. It took me almost 30 minutes to drive 1/2 mile from the Chappel Hill exit off I-20 to Arbor Place Mall yesterday. So much traffic headed to the mall that it was backed up for almost a mile down I-20!

[Joe_Ryder]

Originally Posted by questioner2

I have been watching the poll on this survey and the percentage of nervous people continues to increase. I suspect that as CNBC and other 24 Hour News Channels talk more and more about the recession more and more people will be nervous.

I suspect that if the economy does start to slide the news will hype the stories of people losing their jobs and businesses starting to suffer, and will work everyone into a tissy. I think they will have everyone believing that we are in a 1930s style depression.

The news just like any other show is only there to sell advertising time. If their show is more exciting and more popular than the next, they sell more advertising. Every time any news show covers a subject I know well, they get it all wrong and blow any sensationalist aspects way out of proportion. I have no reason to suspect that their coverage of unfamiliar subjects would be any different.

The news does have the unfortunate effect of causing more newsworthy events. Even the present housing slump probably has more to do with the news than anything else. They've scared people so well, they're afraid to buy. If the news continues to portay our situation as a 1930s depression, it's very likely we will fall into it. In some ways, the practice of killing the messenger who brings bad news could have been a really good idea.

[subsound]

My wife and I were spending more for a bit, we got a great amount of things that we were desiring (since we moved to a new place without most of our furniture) to make our lives easier really damn cheap. We were already saving a good bit even with spending at the time. Then they started massive layoffs at work, so we cut back quite a bit to save a great deal more in case the axe hits us. My wife got bumped from her job, but she found a new one quickly...never know if it might happen again.

[MarPuc]

I have cut back but I'm frugal to begin with.

[73-79 ford fan]

Originally Posted by KevK

There will not be a recession in 2008 or 2009 for that matter. What I redict there WILL be is inflation- look at my post from a week ago and look at this weeks inflation numbers. Inflation will run 5 to 8% next year and 10 to 12% in 2009 THEN the Fed will throw on the brakes and a nasty recession will follow in late 2009 or early 2010. This recession will result in the doubling or more of the unemployment rate to about 10 to 12%

Interesting to see these predictions from back in 2007 to now when we may have something much worse than a recession.