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Every week the media is promoting the upcoming economic recession harder than ever. If you are an economist and want your name promoted by the media, tell everyone a scary deep economic recession is coming and it is going to be ugly. If you think the economy is going to escape a recession you will not get in the news. Bad news sells.
So lets assume the media gets its way and we do in fact have a nasty economic recession. How will it affect you? Since the first of the year the stock market and the housing recession have really got bad, what do you expect for 2008-2009 in your economic life? How will the economy affect YOU?
Luckily, not much. During the last recession of 2001-2002, I was tired of being laid off (again) so we made a vow to become more recession proof for the future.
We moved to a low cost area so we could still pay the mortgage on one income if necesary. We pulled out of stocks last summer when the bad housing news started to hit since we were afraid the market would go down. And I changed careers to nursing since demand for those positions is very high and I'll always have a job.
So, this time we're doing much better than the last recession, which hit us pretty hard.
We are retiring at the end of 2008 and luckily we know our spending patterns so well after 25 years of recording everything that we know we are secure. Absolutely no debt and parents have no debt so we can all help each other.
I always said if the world went to hell, we would all move to my parents house and farm. We could easily raise all our food and none of us needs much.
Well, I don't agree with the media promotion theory. Hard facts are hard facts.
However, our money is in a small local bank and so is my mother's. My husband has a fairly recession proof job. Mine is not, but I am not the last person in, either, so I should last awhile. We are in a low-cost area and have no debt, other than a small amount that is work-related for my husband (tools).
Every week the media is promoting the upcoming economic recession harder than ever. If you are an economist and want your name promoted by the media, tell everyone a scary deep economic recession is coming and it is going to be ugly. If you think the economy is going to escape a recession you will not get in the news. Bad news sells.
So lets assume the media gets its way and we do in fact have a nasty economic recession. How will it affect you? Since the first of the year the stock market and the housing recession have really got bad, what do you expect for 2008-2009 in your economic life? How will the economy affect YOU?
It won't affect me one bit. Despite the housing crash, my property has continued to increase substantially (location). I work in a patent law office, which is swamped with work. I am currently in law school.
It has certainly affected my portfolio which has been hit pretty hard. I just moved my IRA to my credit union's IRA CD at 5.30% - at least this way I will be making money and not watching it pour down the drain. Otherwise, we are in pretty good shape.
Our business is off a bit but we have a built-in contingency plan for bad times, it's called planning ahead. :-) Thankfully, we don't have mortgages or car payments.
I am deeply concerned about our economy as I believe we are in deeper trouble than any of us realizes.
It will affect me very little, and in fact may in the long run be beneficial. I've been cautious about where and how I invested and so far it's looking good for me. If housing prices continue to drop, it's only going to be better for me over the long haul.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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I think (hope) it will adjust RE values to allow me to buy a few places in desirable areas, but if not... I've got a nice spot already. It will cause some more emphasis on cost savings, but... I feel a bit defeated saving a few $$ on growing food and using waste grease for fuel, when property taxes and health insurance are each $30/day... But putting $50 of fuel in my $35 car every week would be a 'downer' too !
Potential recession is a challenge for those of us who already live pretty cheap (no satellite TV or internet, or cable ... but do have a "family plan" cell phone, which is another ridiculous $20 monthly drain)
I will readjust portfolio and do some bottom fishing.
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