How much worse could the economy get?

[green_mariner]

Originally Posted by runningncircles1

This is a world problem, not just Atlanta's. I'll repeat: it's a WORLD problem. All of the OECD nations are in recession. Consumer spending has halted. There are no capital reserves to back new credit. During the summer, the entire world felt the crunch of overexpanding commodity prices based on speculation. Now, they're crashing down to 2004 levels, back to an equilibrium sustainable by the CPI. Home prices are contracting (BTW, if you have home prices expanding at the rate many US cities did, that's not a sign of a productive economy, especially on easy credit).

And, I'm sorry to say, it ain't over yet. Home prices have a ways to go in those bubble cities before they're back in reality. Credit won't be as easy to get as it was in the last decade. This will cause a lower demand for goods, thus more contraction of the economy. Businesses won't be able to borrow and expand. Again, less jobs. You have at least a year more of this, and I wouldn't be surprised if it were a little longer.

What does this mean for a person who only has a high school education and is trying to finish college? I am not in school now, but I plan to return in the summer. Right now I am trying to save money for an apartment.

[tanzall]

Stay in school. You're actually better off than a lot of others. By the time you get out of school, you'll have a better perspective on where the world economy is heading. Then you can make adjustments. Life is about adjustments. It's not always easy. I'm impressed that you're asking economy questions at what I assume to be a young age, but on the other hand it shows how bad things really are. Remember, even during the Great Depression there was around 26% un-employment. Someone had a job! Make sure it's you. Position yourself to work in a new or emerging industry and the current market could be a positive for you.

[green_mariner]

Originally Posted by tanzall

Stay in school. You're actually better off than a lot of others. By the time you get out of school, you'll have a better perspective on where the world economy is heading. Then you can make adjustments. Life is about adjustments. It's not always easy. I'm impressed that you're asking economy questions at what I assume to be a young age, but on the other hand it shows how bad things really are. Remember, even during the Great Depression there was around 26% un-employment. Someone had a job! Make sure it's you. Position yourself to work in a new or emerging industry and the current market could be a positive for you.

That is my plan, staying in school. I had a few problems along the way, but I am not giving up on a college education. I known once I have that degree I can work anywhere I want on this globe. I am just worried about now.

[southgeorgia]

Originally Posted by jdubvjt

There's a whole wave of future foreclosure victims just now starting to skip their mortgage payments until somebody comes to kick them out of their houses months from now. They hope to live "rent free" while they can, possibly racking up credit card debit along the way too. This will make it harder for everyone to borrow money, including companies you might want to work for. Their impact on the economy won't be fully felt for a while, but yes it will get worse.

i read somewhere today that 60% of homeowners who had their mortgages renegotiated (i think within the last year it said) are in default status again.

i've been reading a lot of the foreclosure notices in the newspaper; its amazing how many of them are in the low $100k's and under. something is terribly wrong when people can't make a $600/mo house payment.