So how is this downturn in the economy affecting you?

[Ollie]

mtn_extreme, when I say people haven't been tought how to prepare or how to manage money I mean this.

You should have a MINIMUM of 6 months income in the bank to live on. That is you should be able to live at your current level and life style with zero changes and having zero cash coming in.
Preferably you should have a years worth in the bank. Not in stock or bonds but in cash. This takes a lot of time to build up and a lot of dicipline to do.

As Savagecanuck said, I saw this coming and even tried to tell everyone it was coming over 2 years ago. I was absolutely slammed. I got more red from trying to tell people it was coming than I ever have on anything else combined.

At this rate when the stock market hits 6k or sits at the same level or climbs for 2 weeks I will get back in. Currently have zero in the stock market.

 

[sledskiing]

Well since my orginal post on this thread back in October my business (Sales Consulting and Execution) has taken off.

We'll see. We are a VERY small company so it all could go south pretty quickly.

For the last few months i have been focusing on getting all the finances in line. Luckily i have VERY little debt.

 

[Tackbtch]

Feel very fortunate to have work this spring even if it means going outa country for a bit! NO NEW SLED FOR A WHILE...SIMPLE AS THAT. Dino

 

[mtn_extreme]

mtn_extreme, when I say people haven't been tought how to prepare or how to manage money I mean this.

You should have a MINIMUM of 6 months income in the bank to live on. That is you should be able to live at your current level and life style with zero changes and having zero cash coming in.
Preferably you should have a years worth in the bank. Not in stock or bonds but in cash. This takes a lot of time to build up and a lot of dicipline to do.

As Savagecanuck said, I saw this coming and even tried to tell everyone it was coming over 2 years ago. I was absolutely slammed. I got more red from trying to tell people it was coming than I ever have on anything else combined.

At this rate when the stock market hits 6k or sits at the same level or climbs for 2 weeks I will get back in. Currently have zero in the stock market.

Ollie,

Completely agree about saving and if you notice, my story said I had about 20,000.00 in savings. My point is that there is going to come a time when that runs out too and then your in that boat with those that didn't save any. I too saw it coming but was just a little late as the real estate decline came on very fast. I hadn't had time to reduce the flow (by this I mean cash shuffle , outgoing vs incoming) and downsize the operation. You cannot just stop cold because you have things going that were started 6 months to a year earlier. You also have employee's with families that are dependant on you and you try to keep them above water as well at least giving them time to prepare.
It would also be nice to have a two income household, but for those of us that are single there is no backup.
I would also be curious as to how the Canadian economy and US economy compare in level with this recession (depression).

Good conversation and no red from me,

MX

 

[PowderGirl]

I'm sure a lot of us saw it coming - I was well alarmed over a year ago along with many others I knew but it certainly came crashing down a lot faster than I and most I know antisipated and is far more worse than many of us could envision! My husband and I have always just kept the notion that we could fail though because we are self employed - we still may fail but we may be able to float through it too. Dont know yet. Luckily, I've always enjoyed the simple things in life too so having a simple lifestyle again, especially compared to our very busy and productive one over the last 8 years, doesnt sound so bad. LOL Other than devastating financial losses to sooo many, there is some good that will come of all this.... we'll all pull through it with a better, more rational head on our shoulders. Recessions only last so long and all of us will be better prepared for the next boom (or just better times) and most likely ready to capitalize on the next ressession (because we know better now)! Some of you sound like you are doing just that! Good for you too!

 

[MtnDoo]

This is a banking policy failure - pure and simple.

Unfortunately the banks (what, a couple hundred people really making key decisions in NYC, SFO & CHI) are holding the rest of the country hostage via no access to credit. They're cowards - afraid to lend in a market they created.

Most consumers can't buy a home, a car, or expand a business without use of short-term, low cost credit.

It's very sad to see and read about all of the carnage in the cities, and all around the country. I have no confidence that the US has the leadership necessary right now to change the rules of the game and make things work again anytime in the net 4 years. Our leaders are more worried about hybrid cars, swapping out lightbulbs and spray-foaming government buildings. Just read the list of projects on www.mikehuckabee.com - it's a joke, and the projects are all over-budgeted and temporary.

Fixing this will be up to the people, businesses and organizations that survive and innovate - not our governments. State, local and national governments seem to be stabbing away in the dark - there seems to be no new ideas and the publics appetite for simply piling on large debits/deficits is quickly expiring.

Best of luck too all SW'ers!


MtnDoo

 

[mtn_extreme]

Here in Idaho Micron just announced today thay they are cutting the work force by over 2000 people. That puts the amount of people in this small populated state activly seeking employment with the employment office well over 120,000 people.

 

[Ollie]

This is a banking policy failure - pure and simple.

that is correct.
All the government had to do to get things back on track was to buy up all the castic loans and wait.

 

[revpilot]

This downturns' not all bad, I'm actually able to make left hand turns again, I went to Rexburg Motor Sports for oil and didn't get blitzed by an army of salesmen on my way through to the parts counter. I bought some lumber at Stock building supply and didn't have to throw an elbow to the throat of a security guy to leave. The electrician returned my call. I was able to hire a top notch builder to put a deck on my house and I've spent some time with my family since there's less bacon to bring home. If things continue this way, I'll have less seasonal help to babysit this Summer and I might actually use that fishing license I buy every year. We might even take a family vacation in July!

 

[Reeffzilla]

I'm stayin really busy in the dirt work,alot of big companies have went under and if we can stay strong until next year there will be endless amounts of work.I'm greatfull and lucky cause I know alot of people that are feeling the struggle -Reeffzilla-

 

[Cyle]

Wow I can't believe it, someone gave me neg rep for my post in here, pathetic Whoever it was, go crawl in your hole

 

[TFB]

This is a banking policy failure - pure and simple.

Unfortunately the banks (what, a couple hundred people really making key decisions in NYC, SFO & CHI) are holding the rest of the country hostage via no access to credit. They're cowards - afraid to lend in a market they created.

Most consumers can't buy a home, a car, or expand a business without use of short-term, low cost credit.

It's very sad to see and read about all of the carnage in the cities, and all around the country. I have no confidence that the US has the leadership necessary right now to change the rules of the game and make things work again anytime in the net 4 years. Our leaders are more worried about hybrid cars, swapping out lightbulbs and spray-foaming government buildings. Just read the list of projects on www.mikehuckabee.com - it's a joke, and the projects are all over-budgeted and temporary.

Fixing this will be up to the people, businesses and organizations that survive and innovate - not our governments. State, local and national governments seem to be stabbing away in the dark - there seems to be no new ideas and the publics appetite for simply piling on large debits/deficits is quickly expiring.

Best of luck too all SW'ers!


MtnDoo

Well Said

 

[Treebender]

I haven't rode much at all this winter due to the economy!

I'm really curious on how these layed off people that decide to go to college are going to pay these $100K loans back. College is sky rocketing in cost big time, and if these people graduate with $20/hr jobs, the US will be in depression for years.

 

[trappersnapper]

Gold miner, loven it. dollars down gas is cheap 1000bucks an ounce ya hooo

 

[AKtoad]

It amazes my how some of you guys blame it just on being ignorant with money. That isn't always the case. I had over 20,000.00 in savings and over 50,000.00 in stocks. Plus there was at the time over 100,000.00 in equity in my house. That isn't to mention the 401k , a couple cd's etc.

When the bottom fell out the equity in my house disappeared, my stock values were reduced over 1/2, the business was stuck with tremendous interest and payments on houses that suddenly buyers didn't want anymore and backed out of the deals. Banks were ruthless in the beginning and inflated overdrafts late charges were created. You try to keep your head going as best you can as employees are dependent on you as well as others. Your savings , 401'k and anything else of value have to be used to live on an try to cover debts as you have no unemployment. Line of credits, visa cards, etc are cut off at the bank without warning and ......... everything doesn't just go away.

And to top it all off, you have worked your whole life (over 50 years) and never not had a job and made your own way. The last thing you want to do is welfare or take free handouts. Well, 2 years later your in a position where you have nothing left to fall back on because there is nothing left. You pick up enough here and there to feed yourself and get a little gas for your vehicle . Spend most of your day looking for a job and trying to keep your spirits up.

It's easy to critique when your still working and still have some coin in your pocket. I just hope it stays that way for you all so you don't have to experience what I am having a hard time trying to put here in print.

And before you all go off about how I could affort a turbo for my sled, my riding partner loves to ride so much that he sprung for the turbo's on both our sleds. What a great friend!

MX

You own a buisness and all you have is $20,000 in the bank for payroll and such? no wonder you are having problems

 

[revpilot]

Driving to work all the construction companies have everything they own sitting in their yard, I never realized some of these companies were so big until you see 6 job trailers, 5 snorkel lifts, mountains of scaffolding.... It was always on job sites before.

The truss company next to my office used to have armies of mexicans working 12 hour shifts just a couple years ago now has a couple survivers picking up trash and rotten lumber and burning it in a garbage can to cook their burritos.

There's real estate auction signs set up like burma-shave ads through Teton Valley Idaho and the realtors signs are all rotting off at the post and falling over, kinda funny, kinda sad to see the weathered half rotted signs saying Hurry! only 9 lots left!

 

[pano-dude]

The resort business is taking a beating around here.

2 Condo/ resort developers and 1 established time share resort went tits up.

Over 200 new condos for sale in a town of 3500 fulltime residents. Another 100+ condos for sale in the town next to us.

Houses that were listed at $700k are now listed around $500K, $500 k houses are $350k. Lot's of real estate flippers getting burnt bad.

I work in the ski industry and took a 3% cut and 2 weeks extra holidays at 50% pay. More time to sled.

 

[snowmobiler]

im 99.9% f***ed

 

[Blu Du]

just lucky to get a job to get out of the house. only dug 1 basement this year. a couple septics to do at the end of the month. a coupl big homes in middle of the summer. i really don't what will happen thank god we have 0 equip payments or we would be tits up to

 

[Blu Du]

im 99.9% f***ed

at least you have a chance. .1% LMFAO