someone explain this economy shit

[Brian_smith06 10+ year member]

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

luckily i'll be the last to go. im the warehouse manager plus im pretty flexible with the store. i can open boxes, load furniture, repair the stuff, do computer stuff, help decorate, and many other things like the othere warehouse guys who are only able to deliver the stuff.

but i do plan to get a second job this summer since im taking off from school. this job sadly may become my primary job after the summer though //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif which sucks because im sure i'll be making hella less //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

 

[bose301s 5,000+ posts]

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

I'm sorry that you don't know what laissez-faire means.

 

[duece212 5,000+ posts]

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.

brilliant

 

[Brian_smith06 10+ year member]

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

yeah i guess i was a bit broad on that. i should have said start spending smart. not quite frugle but no stupid either.(you know what i mean)

 

[IgnoreMe 5,000+ posts]

brilliant

is that a stupid thing to do?

 

[duece212 5,000+ posts]

is that a stupid thing to do?

are you trolling me:laugh:

meant that was good to see, most people wanted to finance 100+% of their home because they just knew home prices would keep going up. They weren't willing to put a personal stake in their home upfront.

 

[Brian_smith06 10+ year member]

is that a stupid thing to do?

no i would call that financial planning

 

[Flipx99 5,000+ posts]

ok, supposedly we have a pretty shitty economy right now. my question is...how exaclty does it get this way?
i work on cars for a living and love it. of course ive noticed how slow it has gotten around the shop due to the "economy". what i dont understand is, how does it happen?

1) people are getting fired because companies are not profiting enough

2) people are not buying, because they are loosing jobs, so less profits for the companies

so my question is, if everything was ok 6 months (or whatever, this is just me talking here) how is it that all of a sudden people are simultaneously loosing their jobs and companies profits are dropping out of no where? when i compare my spending habbits from a while back...im spending the same amount of cash.

does my question make any sense? i dont know how else to explain it.

btw: no idiots please. im hoping flip or someone else makes a stop here to explain the shenanigans

Two issues at play here...

1) Much of that spending was propped up by credit

2) Those with cash, like me, are hoarding it. Part out of fear, part out of greed.

If people who want to spend money can't and people who can spend money don't, it causes severe problems in a country who requires perpetual consumption.

 

[Flipx99 5,000+ posts]

i still do the same i have been doing
my southern *** idea is: with all the talk of economic downfall, people spend less on stuff they dont need, dont buy as much stuff therefore companies dont make as much profit, less demand causes them to downsize to stay alive, those workers lose thier jobs so now they especially have no income to purchase things, so with more people losing jobs, less spending on items, less profit for comapnies

with no idea of job security for alot of people, they dont invest in new cars or new houses etc

just a big loop of complicated stuff i imagine

need someone with more background in how economies work to explain

You just explained a deflationary cycle. And yes it does work exactly that way.

 

[Flipx99 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.

The start and end dates of recessions are rather meaningless to ordinary citizens. I am unsure why the tell the common people. It's mostly for research purposes.

 

[IgnoreMe 5,000+ posts]

are you trolling me:laugh:
meant that was good to see, most people wanted to finance 100+% of their home because they just knew home prices would keep going up. They weren't willing to put a personal stake in their home upfront.

lol, no i thought you were taking a stab at me deuce deuce. ie: "what kind of a idiot puts off learning this stuff"

hey, i said i was tired.

 

[wp7456 10+ year member]

You have a potential customer, he is going to get something done on his car, however he just bought a $500,000 house. He makes $80k a year. He loses his home, now he cannot afford to get his car worked on. He now lives on welfare in public housing. Not only do you lose his business but you pay for his welfare. Your taxes are raised as more and more people foreclose on their homes.

We are now a nation of many living off a few.

 

[Andrizzle 10+ year member]

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.

//content.invisioncic.com/y282845/emoticons/wow.gif.23d729408e9177caa2a0ed6a2ba6588e.gif

Like a few others said, I think you are mis-interpretting what I said. I am not saying the economic effects of a recession are psychological, but instead - the reason we fell into this 'state' in the first place.

 

[Flipx99 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.

Strong government oversight increases the systemic risk within any particular industry.

 

[Flipx99 5,000+ posts]

//content.invisioncic.com/y282845/emoticons/wow.gif.23d729408e9177caa2a0ed6a2ba6588e.gif
Like a few others said, I think you are mis-interpretting what I said. I am not saying the economic effects of a recession are psychological, but instead - the reason we fell into this 'state' in the first place.

Somewhat yes. There is real unemployment.

But deflation will continue until those with cash feel that it's safe to spend it. If things continue to get cheaper and cheaper, people will just wait.