I'd say so. The national savings rate went from 0% to 7%. I'd call that a change.
And THAT is absolutely not a bad thing--no matter where you stand politically, .
Good things will come out of this time in history...I really believe it won't be all doom and gloom.
Yeah, but the problem is we have a fiat money system. That immediately creates a disincentive to save and rewards people who spend now. The sad thing is that when we start to recover, we're going to get hit by hyperinflation. That will wipe out our nascent recovery and set us back who knows how far.
nice. I am gonna use that, "fiat money system" that good.
The sadder thing is that a majority of the US population does not know what a fiat money system is. They will continue to save for the short term while they feel at risk instead of learning how to manage their finances.
Personally, outside of 1 month's income in checking and 6 months of income in an emergency fund, my family's money is 'saved' in various planned portfolios of various types. We started saving and managing our own money four years ago.
Of course not, they don't teach economics in school. If they did, the politicians would have to contend with an educated populace and they wouldn't be able to redistribute wealth. You might be interesting in looking at the Lakota Bank. 100% reserve, gold and silver standard, not fiat.
A recession by definition is simply the re-alocation of funds so I stopped working for the companies that were suffering and began working for the companies that were succeeding.
Bam problem solved.
Isn't that feeding big business and a furthering the hidden agenda (which we already are) to become slaves to the system?
No that happens naturally. What we're doing now is rescuing failed companies and keeping the guys who got us into this mess in charge, so that they'll screw up again. Only this time it won't be with their shareholder's money, it will be with the American taxpayers.
Actually that's not true. We don't have that money just sitting in a vault somewhere. We're monetizing that debt, basically that means borrowing from the future to spend today. What it means is that all prices will be higher in the future than they are today. Looks like we're not in for a recovery after all.
Nope. In a recession current businesses like the realestate market crumble and then others go looking for different work since there is now less demand for realestate. In a recession some of the smallest businesses have the best shot because they can grow. Granted if the smaller businesses fill the new niche markets that are now available because the larger businesses cannot employ as many people.
Look at the good will and coupon websites for instance they have boomed because everyone wants to save money.
Or my friend who was selling home made diapers now has more demand for her re usable washer friendly products because diapers are expensive and they fill our landfills with baby poo and plastics.
In every economic downslide there are always others who capitalize on the markets shift and make a living. It is the people unwilling and afraid of change that become comfortable in their jobs that do not wish to switch.
I don't see how a recession would be beneficial to big businesses directly since they are likely the ones profiting from the upside of the economy.
After the 1930s great depression look at all of the wealth that people made from truly meeting the needs of the people they served at that time. The same will be true in this recession
That would be true were we in a recession, but we're not we're in a depression. A depression is a total systemic breakdown. Don't believe me? Just wait until the banks go insolvent starting sometime this month. It'll last over two years and I'm not sure there are going to be any banks at the end.
Last Friday, three more banks were taken over by the Feds and parceled out to other financial institutions. I'm thinking that there's been a total of 73 banks and financial institutions that have failed in the last 18 months, but I prefer not to dwell too much on it. There is a list online that will list the failures and who received the deposits of each institution if you search for it.
I agree that we are actually in a depression. There's not a whole lot of long term jobs that can be created and the Baby Boomers will not be retiring in 2012. Thus the number of jobs available will still be less than needed to support a thriving economy.
What will turn this whole mess around is the creation and invention of a new industry, as Silicon Valley did with the personal computer, micro processor and chip. The subsequent explosion of new business (computer accessories, software, operating systems, games, video, etc...) created new markets and new jobs that previously were unthought of.
As to what that might be, I have no idea.
Oh it's going to get much worse. When the Alt-A resets hit you can pretty much kiss all the banks goodbye. All of them. Oh yeah and those hundreds of billions in TARP money, that's gone too. Wait until the inflation hits from that one. Not only did we waste that money, everything is going to cost more too.
For me and my family it is a yes.. Primarily the shopping and eating out has taken a back seat for the time being. Money saved is money earned has been the motto for a couple of months. I was about to be laid off so this kind of instilled a fear like nothing ever would.
I spend less since the meltdown, much less. I do save more too. In the past, times when I would have picked something up without thinking now I think two or three times then don't pick it up.
by Lawretta Ikenga 9 years ago
How long do you think this would last.I Can't take it any more. It is invading my job. it is turning the country up, side and down.
by erickazoso 9 years ago
I'm curious what others think, in my opinion, the current recession we're in is simply the fault of the people that wanted a house and either couldn't afford their loans or didn't educate themselves properly on the loan they were getting into.
by webstage 9 years ago
What could be a better alternative to our current money system?Other than using the Fed.
by Linda Chechar 8 years ago
Are you a spender or a saver?I was a spender, but am now a saver--was forced into that mode by the economy. It was just never in my nature to squirrel away money for a rainy day.
by cliffordh 8 years ago
I was one of many individuals yesterday that, was disappointed in the Senateâ��s refusal to fund emergency unemployment benefits for millions of Americans across the country who, were in desperate need of it, using the catchall excuse their reluctance to add more to an already growing deficit...
by Om Prakash Singh 9 years ago
The great recession is still in progress and till it's gonna be there for quite sometime. It has affected each and everyone of us. But I was wondering what are the things that we learned (or are still learning) from the meltdown. I personally have learned two things;1. We all must have savings, no...
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