Preparing for Economic Downturn in Austin (Happy: sales, home equity loan, house)

[HappyTexan]

I don't think the media is creating this frenzy..I do agree that they are sensationalizing it though more than they should. None of the fringe economic warnings were reported by the MSM back then.

This was predicted by economists about 2 years ago..they were called "delusional" and "doomers".
Roubini was one and today all the big channels (CNN and such) are fighting to get him on the air..now he is revered for his foresight. Too bad no one listened to him then. Too much over leveraging and now it is all unwinding.

http://www.nytimes.com/2008/08/17/ma...t.html?th=&emc

snippet (note the date):
"On Sept. 7, 2006, Nouriel Roubini, an economics professor at New York University, stood before an audience of economists at the International Monetary Fund and announced that a crisis was brewing. In the coming months and years, he warned, the United States was likely to face a once-in-a-lifetime housing bust, an oil shock, sharply declining consumer confidence and, ultimately, a deep recession."

[Trainwreck20]

Nah, I remember all that talk, and everyone knew it was coming. We just ignored it. As a 'bottom of the food chain' type guy, there is little you really could do about it (other than lobby, I guess, for legislation), but the fact that the financial managers and the monetarily responsible elected/appointed officials ignored it is the 'almost' criminal aspect.

[Philip T]

Originally Posted by Trainwreck20

Nah, I remember all that talk, and everyone knew it was coming. We just ignored it. As a 'bottom of the food chain' type guy, there is little you really could do about it (other than lobby, I guess, for legislation), but the fact that the financial managers and the monetarily responsible elected/appointed officials ignored it is the 'almost' criminal aspect.

I would disagree about the 'nothin' I can do part . . . .

Even a squirrel who is aware that winter is coming can store up his nuts and acorns and live phat all winter long.

If folks have dropped debt, lived below their means, did not buy the pending-price-collapse house, did not buy the SUV-gas-guzzler, and did not ship money to the-rat-hole-formerly-known-as-Wall-Street, they are sitting fairly well in terms of avoiding the downside. All predictable and pre-warned. I did all that based on these early warnings, and am thankful for the early warnings.

But that is just avoiding the bad.

On the side for the good, if the little guys have chosen to pack some surplus, in general, and pick up some Depression Era skills, such as gardening, repair of various stuff and marketable skills, you can be sitting pretty good right now.

I call all that building lifeboats. Not saying the big boat is going down, but it looks possible and you know there are not enough lifeboats and lifevests aboard. At least be able to take care of yourself, your family and those you encounter who may need help.

[blueskies49]

Great post, Philip. It all comes down to preparedness no matter what your station in life. It's just a good feeling to be able to do what you can and not feel totally helpless. Obviously, there are things out of our control but a little bit of self-reliance is good for the soul. My German mother went thru WWII as a child and was frugal and thrifty all her life. Never invested in the stock market but lived comfortably after retirement. I sure as heck didn't pick up her life lessons but I'm trying to now. Better late than never, I guess.

[Trainwreck20]

Oh, I didn't mean there was nothing I can do about my situation, I meant there was little I could do about the impending mess in general....no way I was going to convince anyone to stop giving out bad loans .

[TMIgrad]

Self-reliance is the best insurance policy. Unfortunately, most people do not know how to do much of anything for themselves anymore.

[oldtoiletsmkgdflrpots]

Originally Posted by TMIgrad

Self-reliance is the best insurance policy. Unfortunately, most people do not know how to do much of anything for themselves anymore.

You're joking right? Most people?

[inthecut]

I think people create their own refuge from the recession...by being frugal, staying as far away from indebtedness as possible, and keeping up to date per workplace skills.....
on the contrary, however, I don't think any city is a refuge from the recession for those lacking those qualities I mentioned......in other words, if you are living on debt, on the wrong
spending track, and lack a career focus, and/or are not hacking it in your respective city, Austin will not do magic for you, and you will have the same recessionary probs there as well..........simply, if you can't hack it where you are from, Austin is no magicpill/panacea by any means...

[oldtoiletsmkgdflrpots]

People can be frugal till they're blue in the face. When there are no jobs there are no jobs. People cannot stay away from indebtedness when they lose their jobs. While it's very easy to make what is happening in the job market a personal issue I just believe it is not a personal flaw of some sort. Have you seen the unemployment figures? I think it's a bit more than having a lack of budgeting skills, wrong spending, or a lack of a career focus. I've seen thousands of people lose their jobs and it certainly wasn't because they couldn't hack it. That much I know for sure. Good people, hard working people, losing their jobs through no fault of their own. When the numbers are what they are today it is not a personal defect any longer to be unemployed, if it ever was.

And, I also think some people from this state should stop thinking some of us moving there think Austin is a magic bullet. A bullet it might be, but certainly not magic by any stretch of the imagination. Some people come there looking for work to keep their family alive. Maybe I'm wrong and please correct me please but is Texas owned by one giant HOA and has a rule that people from other states out of work should stay away?

I know it doesn't make some Texans happy but you're still part of the good 'ol USA last time I checked. And, I'm still under the assumption it's a free country. Please correct me if I'm wrong.

[Alatex]

Have you seen the unemployment figures?

4.6% for San Marcos, but I haven't seen for the metro region as a whole ?