Are We (United States) Headed for Recession?

rolltimer · 01-17-2008, 01:59 PM

I don't ask this to scare anybody or to stir a pot of panic soup. I'm just asking because I'm interested in knowing if you think we are in, or are headed for, an economic recession and how you think it will affect you and your family.

What do you plan to do to lessen its impact?

Financial site, The Motley Fool, gives the lowdown on the definition of recession, how long they usually last and the last one we experienced (which was 2001).

If you've been caught in the subprime mess, the credit crunch or with plummeting home values, you may already have the bad taste of recession in your mouth. Even if you haven't personally experienced any of the fallout, it's still possible to be affected if companies begin downsizing or slowing their hiring and you lose your job or can't make that planned career move.

I don't see an immediate impact of recession in my life. I work part time with the government who doesn't tend to downsize in either recessions or expansions. I have been looking for additional employment or freelance work. Recession may impact my job search. My investments will take a hit, but then, they already have been pulled down in the general stock market retreat.

How do I plan to handle recession?

Look for new ways to be frugal.

Look for more income streams including putting into practice some ideas found in these forums for completing online surveys and entering sweepstakes.

And look for bargains in the beaten down sectors of the stock market. Most of my investments are in my IRA and I'm still years away from tapping those assets.

What's to learn from a retracting economy?

Always be in the process of upgrading your skills whether they relate to your current job, your financial acumen, a hobby that could turn into a freelance business, or just your knowledge base on subjects in which you have an interest and in which you could become an expert. Take the next step. This ensures you are never at the mercy of an employer or a threatening recession.

Frugality never goes out of style, no matter how much money you are making. You may trade in the Ramen noodles for Rotini during the good times but you never forget that the tuna is just a few shelves down from the clams.

bluecobia · 01-17-2008, 02:34 PM

recession no I do not think so.

I feel there will be a down turn that will continue for a few more months.
I feel we will shake this off and the DOW will be back to 1400 within a year.

Gootsy · 01-17-2008, 04:51 PM

I think so. Though I don't know how nasty it will be. Does seem like it's going to be brutal tough for a lot of people.

I heard today that if you officially enter one, it's very likely that the gov will give out a tax rebate to help jump start the economy and encourage consuming. Like back in 2001. Although I also heard that within the first few months of the rebate, people only spent an average of 1/3rd of the money, because of fear.

Haven't checked the FOOL link you posted, but would be interesting to read an article comparing the 2 situations (2001 recession vs situation now). I'll check the fool out after clicking post hehe.

Beignet · 01-19-2008, 09:45 AM

We are already in a recession.

This will be a severe recession and I've even read a "almost" depression.

We are in a "housing depression."

It's going to be really really tough the next 2 years.

I feel bad for the familes who are losing their homes in foreclosure or have to file for BR.

My family is strapped and I know we are not the only ones.

What is popular now with the housing depression is renting homes. No maintenace, taxes or insurance, and a surplus on homeson the market and for rent. If it's for sale, its for rent. . . .

Beignet

1littlething · 01-19-2008, 10:52 AM

It does feel to me that we are heading to a recession. More and more families are strapped for cash, and it will most likely get worse.

72Tiger · 01-19-2008, 10:54 AM

Just the fact that people and the news are discussing the possibility of a recession means that economic times are uncertain right now. All the more reason to decide to live frugally, and to be in control of one's finances. If you look at these things as a lifestyle approach, and not just a way to make it through hard times, you will be preparing yourself for anything that may come.

Here are some things I think can help weather a depression or recession.

Minimize debt.
Keep a cash reserve in a readily available 'emergency' fund, and continually keep it funded, and grow it when you can.
Develop multiple income streams.
Obtain skills, and education to make yourself valuable to employees.
Live below your means.
Stay positive.
Develop healthy habits to try and avoid unnecessary medical expenses. Exercise, eat right, don't smoke, and don't drink to excess.

Any other suggestions?

Scudley · 01-20-2008, 11:21 PM

Pretty scary thought, better to be prepared than to be ignorant

rolltimer · 01-21-2008, 08:33 AM

Quote:

Originally Posted by 72Tiger

Just the fact that people and the news are discussing the possibility of a recession means that economic times are uncertain right now. All the more reason to decide to live frugally, and to be in control of one's finances. If you look at these things as a lifestyle approach, and not just a way to make it through hard times, you will be preparing yourself for anything that may come.

Here are some things I think can help weather a depression or recession.

Minimize debt.
Keep a cash reserve in a readily available 'emergency' fund, and continually keep it funded, and grow it when you can.
Develop multiple income streams.
Obtain skills, and education to make yourself valuable to employees.
Live below your means.
Stay positive.
Develop healthy habits to try and avoid unnecessary medical expenses. Exercise, eat right, don't smoke, and don't drink to excess.

Any other suggestions?

Great ideas! Don't forget >>> Be part of a finance and frugality-minded community like Wise Bread where you can pick up good tips everyday and get a lift from fellow posters.

jdp · 01-21-2008, 09:16 AM

Nothing different to add than whats already been said.

I'm just stuck on "creating multiple income streams". Wish I could, can't get past my "regular" job.

Gootsy · 01-21-2008, 01:57 PM

It's all your fault we're heading for a recession anyways. You guys being so selfish and frugal all the time. Why don't you go to the mall and max out your credit cards for the good of the country!

Stop thinking about yourselves for once, and go buy a new car.

*NOTE: I'm kidding of course.*

01-17-2008, 01:59 PM	#1
rolltimer Senior Member Join Date: Dec 2007 Location: Alabama Posts: 136 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (24)	Are We (United States) Headed for Recession? I don't ask this to scare anybody or to stir a pot of panic soup. I'm just asking because I'm interested in knowing if you think we are in, or are headed for, an economic recession and how you think it will affect you and your family. What do you plan to do to lessen its impact? Financial site, The Motley Fool, gives the lowdown on the definition of recession, how long they usually last and the last one we experienced (which was 2001). If you've been caught in the subprime mess, the credit crunch or with plummeting home values, you may already have the bad taste of recession in your mouth. Even if you haven't personally experienced any of the fallout, it's still possible to be affected if companies begin downsizing or slowing their hiring and you lose your job or can't make that planned career move. I don't see an immediate impact of recession in my life. I work part time with the government who doesn't tend to downsize in either recessions or expansions. I have been looking for additional employment or freelance work. Recession may impact my job search. My investments will take a hit, but then, they already have been pulled down in the general stock market retreat. How do I plan to handle recession? Look for new ways to be frugal. Look for more income streams including putting into practice some ideas found in these forums for completing online surveys and entering sweepstakes. And look for bargains in the beaten down sectors of the stock market. Most of my investments are in my IRA and I'm still years away from tapping those assets. What's to learn from a retracting economy? Always be in the process of upgrading your skills whether they relate to your current job, your financial acumen, a hobby that could turn into a freelance business, or just your knowledge base on subjects in which you have an interest and in which you could become an expert. Take the next step. This ensures you are never at the mercy of an employer or a threatening recession. Frugality never goes out of style, no matter how much money you are making. You may trade in the Ramen noodles for Rotini during the good times but you never forget that the tuna is just a few shelves down from the clams.

01-19-2008, 09:45 AM	#4
Beignet Member Join Date: Dec 2007 Posts: 43 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Recession? We are already in a recession. This will be a severe recession and I've even read a "almost" depression. We are in a "housing depression." It's going to be really really tough the next 2 years. I feel bad for the familes who are losing their homes in foreclosure or have to file for BR. My family is strapped and I know we are not the only ones. What is popular now with the housing depression is renting homes. No maintenace, taxes or insurance, and a surplus on homeson the market and for rent. If it's for sale, its for rent. . . . Beignet

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01-17-2008, 02:34 PM	#2
bluecobia Junior Member Join Date: Jan 2008 Posts: 20 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	recession no I do not think so. I feel there will be a down turn that will continue for a few more months. I feel we will shake this off and the DOW will be back to 1400 within a year.

01-17-2008, 04:51 PM	#3
Gootsy Senior Member Join Date: Jan 2008 Posts: 281 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (24)	I think so. Though I don't know how nasty it will be. Does seem like it's going to be brutal tough for a lot of people. I heard today that if you officially enter one, it's very likely that the gov will give out a tax rebate to help jump start the economy and encourage consuming. Like back in 2001. Although I also heard that within the first few months of the rebate, people only spent an average of 1/3rd of the money, because of fear. Haven't checked the FOOL link you posted, but would be interesting to read an article comparing the 2 situations (2001 recession vs situation now). I'll check the fool out after clicking post hehe.

01-19-2008, 10:52 AM	#5
1littlething Member Join Date: Jan 2008 Posts: 48 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	It does feel to me that we are heading to a recession. More and more families are strapped for cash, and it will most likely get worse.

01-19-2008, 10:54 AM	#6
72Tiger Senior Member Join Date: Jan 2008 Location: Knoxville, TN Posts: 301 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (38)	Just the fact that people and the news are discussing the possibility of a recession means that economic times are uncertain right now. All the more reason to decide to live frugally, and to be in control of one's finances. If you look at these things as a lifestyle approach, and not just a way to make it through hard times, you will be preparing yourself for anything that may come. Here are some things I think can help weather a depression or recession. Minimize debt. Keep a cash reserve in a readily available 'emergency' fund, and continually keep it funded, and grow it when you can. Develop multiple income streams. Obtain skills, and education to make yourself valuable to employees. Live below your means. Stay positive. Develop healthy habits to try and avoid unnecessary medical expenses. Exercise, eat right, don't smoke, and don't drink to excess. Any other suggestions?

01-20-2008, 11:21 PM	#7
Scudley Junior Member Join Date: Jan 2008 Posts: 6 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (9)	Pretty scary thought, better to be prepared than to be ignorant

01-21-2008, 09:16 AM	#9
jdp Senior Member Join Date: Jan 2008 Posts: 226 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (29)	Nothing different to add than whats already been said. I'm just stuck on "creating multiple income streams". Wish I could, can't get past my "regular" job.

01-21-2008, 01:57 PM	#10
Gootsy Senior Member Join Date: Jan 2008 Posts: 281 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (24)	It's all your fault we're heading for a recession anyways. You guys being so selfish and frugal all the time. Why don't you go to the mall and max out your credit cards for the good of the country! Stop thinking about yourselves for once, and go buy a new car. NOTE: I'm kidding of course.