Economy, Maine... (Clinton: apartment, rentals, mortgage)

[K-Luv]

Those of you who are familiar with the study of the economic state of this country will be aware that what is supposedly happening right now really happened three to six months ago. This is mainly because business generally reports their profit/loss on a quarterly basis and you need to tack on a month or two for analysis of all economic sectors to be complete. So, the 'current' economic picture actually took place in the past. I mention this for two reasons:

-The last major economic crisis that happened in this country was already over by the time economists declared that we were in a recession.

-I am finding it hard to find any evidence that we are actually in a recession. I see no difference between now and two, three years ago.

Supposedly the economy is in/was in or/is going into the crapper but yet my life still remains comfortable, and for the record my yearly income is nothing to brag about. The current restaurant that I work at has not seen any slow-down in business even though our product is a $7 hamburger (yes, you heard right) and there is literally a Wendy's and Burger King down the street. In fact, business is up. Oh, and this place is not high-class by any means. The place that I worked at last summer (a seasonal restaurant that is geared toward tourists and a place where a the bill for two people is generally around $80) is already seeing many reservations for large parties over the summer. Hardly the sign of a slowing economy.

So, what do Mainers think? Is your life still the same despite the current status of our economy? Do you think that it is all BS?

[Maineah]

Originally Posted by K-Luv

Those of you who are familiar with the study of the economic state of this country will be aware that what is supposedly happening right now really happened three to six months ago. This is mainly because business generally reports their profit/loss on a quarterly basis and you need to tack on a month or two for analysis of all economic sectors to be complete. So, the 'current' economic picture actually took place in the past. I mention this for two reasons:

-The last major economic crisis that happened in this country was already over by the time economists declared that we were in a recession.

-I am finding it hard to find any evidence that we are actually in a recession. I see no difference between now and two, three years ago.

Supposedly the economy is in/was in or/is going into the crapper but yet my life still remains comfortable, and for the record my yearly income is nothing to brag about. The current restaurant that I work at has not seen any slow-down in business even though our product is a $7 hamburger (yes, you heard right) and there is literally a Wendy's and Burger King down the street. In fact, business is up. Oh, and this place is not high-class by any means. The place that I worked at last summer (a seasonal restaurant that is geared toward tourists and a place where a the bill for two people is generally around $80) is already seeing many reservations for large parties over the summer. Hardly the sign of a slowing economy.

So, what do Mainers think? Is your life still the same despite the current status of our economy? Do you think that it is all BS?

Regardless of how tight things get ,tourist related businesses HAVE to hire and open their doors. Otherwise what is the alternative? Running a business at a lower level of income is better than standing in a bread line.
Ask Ranger101st if the economy is good. He just had to sell off his truck and trailer as fuel costs put him out of business. He is far from an isolated case.
As you stated you are seeing the economy as it was three months ago. There will be a seasonal rise as summer jobs are filled. The telling picture will come in December when the summer business reports come in. A word to the wise... don't pretend there isn't a downturn when truckers and farmers are shutting down their life long businesses in record numbers, fuel continues to rise daily,food costs continue rise at a steady pace. Just watch how many businesses fold this fall...it happened in the early seventies....it's on the verge again. The stock market is not a good indicator of the economy. There are too many "safeguards" in place to keep it from bottoming out. It's like a one way valve now with increases daily and no reality checks. When it goes it will take a lot of people with it!

[flycessna]

I think it depends in large part your overall situation. If your single, frugal, and have not burdoned yourself with large debt then you can easily weather through this.

I was in college and working during the recession of the early 90's. I remember saying to friends......why's everyone complaining and losing their houses? I am working and making the same abmount as usual, by the way, are we going out drinking tonight?

Now I have a family, a home, bills, ect. Even though I have not burdoned myself with debt (I still owe less than my home is worth and drive 2 older cars), we are really feeling it. Three boys, and our food bills have gone through the roof. I also am heavly invested in realestate..........these oil prices are going to kill me.

My guess is I am spending, on just everyday living expenses(on the same income), an extra $800 a month compared to a few years ago. I also expect I will have to come up with an extra $10,000 for heating my rentals....or maybe more.......I was locked in at $2.39 this past winter and the price right now is 4.39....I am responsible for 5000 gallons $2x5000=$10,000

So yes........this has been catastrophic for me.............but I will have to deal with it as everone else. And I will try not to make hasty decision based on fear.

[RANGER.101ST]

i dont no what dream land some people are liveing in becouse if i did id go there.
you say we are no worse off than 2 or 3 years ago while i was forced to sell a 160,000.00 unit for half what it was worth becouse of fuel prices.id like some one to look into my wifes eyes and tell her that .(god help ya).as for wendys and burger king 85% of the people that go their live off the gov any way.ok im done befor i say to much.

[GregW]

I am feeling the pinch. The “luxuries” like movies, dinner out (except for a rare hamburger) has stopped, and my summer vacation has been canceled. I can live without these. I have a few years to go on a fixed rate mortgage and will be able to borrow enough to buy a heavily discounted used economy car that should last another decade at least. Oil costs are not hanging me because I heat with nuclear electricity. Flycessna – you might consider shutting some of the places down for the winter and only renting to the remaining tourists in the summer. I already take a bus to work. I expect the bus fare to rise to meet the fuel costs but not as much as I would pay to drive a very economical car. This is not fun but it could and likely will get a lot worse.

I am beginning to realize that our frugality was not enough to provide us with the retirement we expected. Not surprising because so far all the implied promises (like work 40 years and you will have a comfortable retirement) to me have been broken. Just like to all the rest of us.

[RANGER.101ST]

this isnt the only truck sold becouse of high fule prices our econamy is going in the toilet.

[MaineMathTCHER]

When we came here a bit over a year ago-50 gallons of oil was costing us about 140$. Last week, it was over 207$. This is a huge jump in such a short time. Our Jeep took nearly 90$ To fill this week-last summer it was 65$. And the food bill-what cost us 100$ Now, costs about 160$ a week. So, its a huge change to our same old small budget. So, we always take our lunch, car pool, can't go on vacation this year, have no cushion if something gets wrong. So, yes there is an impact. I just feel blessed to work for the state as many jobs right now are in jeopardy.

[flycessna]

Years of ineffective government led by lobbiest and US are to blame. (US) Because we are responsible for giving them their basically life time position........I mean, whats the re-election rate for congress? I know its over 90%

When Clinton veto the energy bill 10 years ago that would have allowed drilling in AK....one of his reasons was because it was going to take a decade before we saw any return on it.......hhhmmm.

We need nuclear power plants , windmills, DRILLING in AK and OFFSHORE, All of it.

We can put a man on the moon in 10 years but we cannot become energy independant in a 100.

OK, thats my rant for today.

[Boomerang]

I agree with Ranger.
Everyone I know is cutting back on spending in order to help keep up with insanely rising prices of gas, oil, and food. We hoped to buy a house this summer but now I'm thinking it would be wiser to keep renting our tiny private apartment (heat is included - even if the rent goes up, it'll still be cheaper than heating an entire house). I consider myself incredibly lucky not to be in debt for anything, although we're not able to save either despite frugality.

I'm quite middle-aged and this is definitely the scariest economic times I've ever seen. Worse than the 70s or 80's. I've never seen prices rise so precipitously and continuously on all fronts combined with tight credit, layoffs, astronomical health care costs, etc. We're managing to hold on by making a lot of sacrifices in our circumstances but that's just fine with me compared to what other people are going through.

I do think some people in this country are getting a wake-up call to not continually strive to live beyond their means, but to appreciate the simple pleasure of having a job, a roof over your head, and food in the house. Millions of people around the world are not so lucky.

Ehh....P.S., I don't mean to say that I wouldn't be happier with a great economy, even if the folks who spend wildly never had to learn a thing!!!

P.P.S. Just found this ABC news item dated May 8 2008:
You've surely noticed food prices have gotten higher, but do you realize how much they are compared to just a year ago? The average cost of eggs is up 35-percent, milk 23-percent and bread is up 16-percent.

[K-Luv]

Ok, I know that the higher costs of oil affects things like raising food prices (costs more to farm/ship) and extra money spent on heating homes has left many people broke, but those are separate issues. The raise in oil is an independent occurrence separate from our 'slagging' economy.

If oil went back to under $100 a barrel would you still say that the economy is down the drain, like it supposedly is?