someone explain this economy shit

[Brian_smith06 10+ year member]

i know that my store use to sell 10k a day in furniture and last week in a seven day period we didnt even sell 10k total. the store i work at is a tad doomed //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

 

[Andrizzle 10+ year member]

It is simply because humans react on fear. Nearly every financial decision ever made was made due to fear of another alternative/result.

What people don't understand is that a recession is %100 psychological.

 

[duece212 5,000+ posts]

^^^^

You don't sound like the type of person that overspent and took home equity loans and remortgaged your house to buy more shit. Unfortunately the people doing that is what kept alot of things going by buying more shit. That can only hold out so long before housing prices drop and credit goes away because banks have no liquidity, or if they do, they don't have the balls (or lack of brains) to give out credit.

Not sure how else to say that one

 

[bose301s 5,000+ posts]

You have to remember that the Recession started in December of 2007, this was before gas hit meteoric levels, it was still high granted, but not over $3.00/gal. The biggest cause was the sub prime mortgage crisis. When people couldn't pay loans that they were given the banks started losing money. As more of this happened the houses could no longer sell and the banks already being over extended took a shit.

 

[Brian_smith06 10+ year member]

it also doesnt help when all the news talks about is how we are in a crisis. and if iirc didnt the new president mention that we are in a crisis in his inauguration speech further putting people in fear?(correct me if im wrong)

we need to get away from this fear ish and get back to normal spending, not that it has effected mine any but you know what i mean

 

[bose301s 5,000+ posts]

You don't sound like the type of person that overspent and took home equity loans and remortgaged your house to buy more shit. Unfortunately the people doing that is what kept alot of things going by buying more shit. That can only hold out so long before housing prices drop and credit goes away because banks have no liquidity, or if they do, they don't have the balls (or lack of brains) to give out credit.
Not sure how else to say that one

That is the underlying factor right there.

When we were seeing record housing sales and new home construction just a few years ago, it was not due to extreme economic prosperity, it was these sub prime loans that gave mortgages to people on houses that cost more than they ever could have afforded. This bubble then burst and the shit hit the fan.

And to say it was the democrats is a joke, this was set in motion way before the democrats retook control. If anything it was caused by the republicans and their laissez-faire approach to anything financial and business related. Had there been enough government oversight this would not have happened.

 

[LazyRider 10+ year member]

i know that my store use to sell 10k a day in furniture and last week in a seven day period we didnt even sell 10k total. the store i work at is a tad doomed //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

Looks like it's time to start looking for a new job //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

 

[TNTR70 10+ year member]

What people don't understand is that a recession is %100 psychological.

are you ****ing serious? so there are millions of people who "DIDN'T" lose thier jobs, homes, credit, retirements, cars.

THEY ONLY "THINK" THEY DID.

 

[yanks fan 10+ year member]

Banks gave out loans to people who couldn't pay them back. That's why you see so many foreclosures right now. People bought million dollar homes thanks to the loans from the banks but couldn't pay back the banks. I know of a couple people in my area who bought high dollar homes but then didn't even have the money to put furniture in the home....Go figure. Everyone is losing money for the most part but the economy works in cycles. It'll turn around soon enough. Its a great time to buy homes or a car if you got the money. My family just got a steal on a beach house a couple weeks ago.

 

[duece212 5,000+ posts]

it also doesnt help when all the news talks about is how we are in a crisis. and if iirc didnt the new president mention that we are in a crisis in his inauguration speech further putting people in fear?(correct me if im wrong)
we need to get away from this fear ish and get back to normal spending, not that it has effected mine any but you know what i mean

I don't think we had "normal" spending before, I think too many people were living beyond their means, spending what they didn't have, and expecting a lifestyle they frankly weren't entitled too.

If we go back to that....we will be back to this in no time

 

[IgnoreMe 5,000+ posts]

You don't sound like the type of person that overspent and took home equity loans and remortgaged your house to buy more shit. Unfortunately the people doing that is what kept alot of things going by buying more shit. That can only hold out so long before housing prices drop and credit goes away because banks have no liquidity, or if they do, they don't have the balls (or lack of brains) to give out credit.
Not sure how else to say that one

you know, i think the problem for me in trying to understand this, is that this is mostly for people who own homes. i dont even know what equity is or any of that shit. i heard the term but thought "ill figure it out when i actually have enough cash to buy get a good down payment on a house". i think its just my ignorance in those fields thats causing my problem here.

 

[IgnoreMe 5,000+ posts]

are you ****ing serious? so there are millions of people who "DIDN'T" lose thier jobs, homes, credit, retirements, cars.
THEY ONLY "THINK" THEY DID.

you're misunderstanding him.

 

[duece212 5,000+ posts]

And to say it was the democrats is a joke, this was set in motion way before the democrats retook control. If anything it was caused by the republicans and their laissez-faire approach to anything financial and business related. Had there been enough government oversight this would not have happened.

Not going to make this a political thread but if the republicans were a speaker they would be a V4 mag.....just sayin

 

[bose301s 5,000+ posts]

are you ****ing serious? so there are millions of people who "DIDN'T" lose thier jobs, homes, credit, retirements, cars.
THEY ONLY "THINK" THEY DID.

You don't get what he means. He means the reason we fell into it and stay there is psychological. We are still at what, 7% unemployment nationally only? This is what many economists have actually estimated that the lowest sustainable unemployment rate is. When we were at 3% under Clinton, while it is great, it is also unsustainable due to market forces. In that vein we are not all that bad off yet everyone is worried, that is the psychological part.

 

[kh971 10+ year member]

It is very complicated, since not ONE thing caused this, this has been building for years and was going to pop sooner or later. These periods are just a cleansing effect to weed out people who do not run efficent businesses and who do not save for hard economic times.

Survival of the fittest. It's too late to go into it deep. One reason we have less good paying manufacturing jobs in this country anymore.

Companies buy products from foreign manufacturers, for many reasons:

No Unions

No EPA or EPD

NO FUTA

NO FICA

No Family Leave Act

No ****** Discrimination

No DOT or PSC

Lower Wages

These are just a few things that have grown and manifested themselves into costly exspenses that must be passed along and businesses must charge for in their product. Therefore ro offer the product at a cheaper price and sell it cheaper, they purchase from overseas manufacturers.

And if they buy from overseas manufacturers the Amercan manufacturers either go overseas or close thei plants totally.

This is only one part of a problem that has about 10 causes.