So, I'm genuinely asking here. And forgive me if this takes a political turn, and if it does, I can move it into P&R. My question is this: Do you really think that the economy is as bad as reported? My answer for now is no. I read and listen to all of these political analysts and see what the media portrays. I know the price of a barrell of oil and I know the days the market gains or loses. But frankly, if we are in such bad financial condition individually, why do I see Wal-Mart packed? All day long, mind you! Why do I see more and more cars on the road with each passing evening? I understand that gas prices have fallen, however, if things are that bleak, where are all these people going? I understand that there's a bailout and that the auto industry is supposed to be in dire straits, however, I have seen new car after new car pass me on the highway.

 

So, perhaps my more direct question is this: Does the media overportray the economic "crisis"? And if they do, is it politically motivated somehow? Is it the fact that they can get folks to watch "doom and gloom" more in today's society? I don't know the answers, so I pose it to you folks. Because, at least for me, my eyeballs ain't seeing what my ears are hearing, if you catch my drift.

 

Thoughts?

The simple answer is "yes - the economy is bad."

 

The media isn't making up stories about thousands of layoffs. Its not making up stories about rising unemployment. Its not making up stories about the automotive industry and the ripple effect their failure will have.

 

Yes, its bad.

I don't know many who have lost their jobs. Gas is cheaper. Sales at stores all over. My home business is booming. In my world, things have been pretty good.

I am in the belief as you. As bad as everyone says the economy is, I just don't see it. I was out at Meijer yesterday and the place was packed. As I was leaving I looked at Best Buy's parking lot and it was over 75% full. Yes I will buy into the fact people may not be spending as much as usual but they are spending nonetheless.

I think it is as bad as they are say.

Walmart, I read is the only retail place making any kind of money and even their projections are lower than first thought.

 

In my area people are staying home and not spending money at all. It's almost so bad that one can at times take a short nap on the main road(RT 79) and not fear getting ran over.

Not sure that local traffic is the best way to gauge the condition of the economy. I did see that Walmart's same store sales was up, but much of that has to do with some substantial price markdowns and it's unlikely it will translate into increased profits. Ultimately, there are necessities that people have to buy and Walmart's prices and selections make it a logical choice. (Not that people aren't buying things other than necessities there obviously).

 

I have not been impacted at all by the recession/depression. In fact, I've actually benefitted because I just re-financed at a great rate. But I do believe the economy is every bit as bad as it is being portrayed by the media and economists.

I do believe the economy is as bad as stated. I think there are pockets of areas that don't seem to be as bad as others though.

Not sure that local traffic is the best way to gauge the condition of the economy. I did see that Walmart's same store sales was up, but much of that has to do with some substantial price markdowns and it's unlikely it will translate into increased profits. Ultimately, there are necessities that people have to buy and Walmart's prices and selections make it a logical choice. (Not that people aren't buying things other than necessities there obviously).

 

I have not been impacted at all by the recession/depression. In fact, I've actually benefitted because I just re-financed at a great rate. But I do believe the economy is every bit as bad as it is being portrayed by the media and economists.

The traffic thing was more of a joke but, being serious if people are not out they for the most part are not out spending money.

The traffic thing was more of a joke but, being serious if people are not out they for the most part are not out spending money.

 

Not necessarily. A lot - a whole lot - of sales occur over the Internet these days. At least in my household anyways. :irked:

Not necessarily. A lot - a whole lot - of sales occur over the Internet these days. At least in my household anyways. :irked:

I will give you that at least a little.:banana:

The economy runs in cycles. When the Dow hit 14,000 and home prices were up 10+ percent, it was an "artificial" high. When the Dow goes below 7,000 and home prices are down 10+ percent, it is an "artificial" low. When we are in a down economy, the "doom and gloom" outlook only seems worse from the inflated artificial highs.

 

Spending habits go up and down with the economy. Personally, my household made more money this year than last, yet we're spending less on Christmas. The "gloom and doom", which is heightened by the media, throws everyone into a "horde your posessions" attitude. If everything was as bright and cheery as last year, we would probably spend more this year.

 

The same goes for companies - when its a banner year, you have a multitude of employees making good money. When spending slows down, companies "horde their possessions" and layoff people to stay in the black. Those companies with union employees are hit the worst because they cannot just have layoffs. Just ask Ford - it cost them $18 billion to layoff 38,000 workers.

The economy runs in cycles. When the Dow hit 14,000 and home prices were up 10+ percent, it was an "artificial" high. When the Dow goes below 7,000 and home prices are down 10+ percent, it is an "artificial" low. When we are in a down economy, the "doom and gloom" outlook only seems worse from the inflated artificial highs.

 

Spending habits go up and down with the economy. Personally, my household made more money this year than last, yet we're spending less on Christmas. The "gloom and doom", which is heightened by the media, throws everyone into a "horde your posessions" attitude. If everything was as bright and cheery as last year, we would probably spend more this year.

 

The same goes for companies - when its a banner year, you have a multitude of employees making good money. When spending slows down, companies "horde their possessions" and layoff people to stay in the black. Those companies with union employees are hit the worst because they cannot just have layoffs. Just ask Ford - it cost them $18 billion to layoff 38,000 workers.

 

Well, call it what you want, but "hording your possessions" appears to be translating into a real and legitimate recession.

The economy is sick, but it is not as ill as the media lets on. Of course it could get worse, but at the moment the situation is not as bad as when Carter was preparing to leave office. Under Carter unemployment was 10%, inflation was 11 or 12% and interest rates were 21%.

I think that many feel the economy is not as bad because it really hasn't impacted them yet. There are those for whom this is debilitating, and this isn't new to them at this point, but it's getting even more dire.

 

The lower levels of the economic scale have been struggling for a while. It's beginning to trickle up, creeping up into the lower-middle class. The collapse of the financial sector has really put a hurting on some seniors. While I will likely be given tons of websites to read to dispute that, I am basing my opinion on 4 separate cases I know of seniors who are near or over 70 who have pretty much seen their life savings evaporate like water in the Sahara.

 

Food prices have increased, and while fuel prices have decreased, heating costs have gone up. If you live paycheck to paycheck, there's been no change. Credit is harder to get, and many who may not have bad credit, but don't have stellar credit are now being denied.

 

If the auto industry completely collapses, it will, IMO become dire for a great deal many more, and quickly. The closing of plants will impact many more than just the people who work in them. It will affect suppliers to the automakers, their suppliers, and on and on. It will affect the spending habits of those losing their jobs. That means less discretionary spending for restaurants, movie theatres, etc. The loss of health benefits by so many will bring on it's own slew of problems. The loss of jobs will also decrease the amount of revenue generated by local communities via local taxes. That will mean cuts in services and funding of programs.

 

IMO, the economy is as bad overall as they say. And it's only going to get worse. It will just take a while to reach some places. And, maybe Wal-mart is so packed, because many who would never have stepped foot in Wal-mart before now find themselves forced by the economy to buy more frugally.

I think it could possibly be bad, spindoc.

My hours have been cut and I am laid off for the week following Christmas, as are most places around here.

The company has been there for 20+ years and has never once had a layoff.

It's bad.

My dad used to tell me:

"A recession is when your neighbor is out of work, a depression is when you are out of work."