Don't you think we're already in a recession???

Question

People are losing their homes, they can't afford to heat them this winter, the discretionary income is totally gone for most families... what the hell does have to happen before the word will be used officially??? Thoughts, you good people?

Harley, I don't know what part of the country you are in, but here in the NE there is not new construction around every corner, and we're still paying off our heating bills from last year!

I'm not getting a warm and fuzzy feeling from anyone I'm dealing with lately, financially, even the upper middle class income levels are complaining about all their expenses rising and income not keeping pace.

I'm fascinated that my answers are split down the middle, that's never happened before! Thanks to all, and Harley, I appreciate your clarification, I would have guessed you were in a Sunbelt state.. :) It's really tough here (NY) over the past two years, and getting worse. Glad to hear it's not across the board.

Guys, normally I award the points but I'm going to let this one go to a vote, let the best answer win.. :) I hope we're all doing better by spring!! Thanks, Suz

Answer 1

Many stupid and misleading fiscal/financial decisions (tax cuts for the rich????) created the illusion of a boom.
But the chickens are coming home to roost.

Answer 2

It depends on how you define recession. I copied this definition from an economics web site. You won't hear the the word recession until this occurs.

< The standard newspaper definition of a recession is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters. >

I still see people wildly spending money so I would say we are not in a recession. People losing their mortgages are because they should never have had them in the first place. I refinanced and when they offered me a deal to finance more than I owed on my home I turned it down. It doesn't take much to see a losing proposition. Greed from buyers and sellers caused this mess. Now we'll pay the price with job losses and inflation. I'm ready.

Answer 3

People are losing their homes because they refused to educate themselves about mortgages, and now want to blame the government. How do we know people can't afford to heat their homes when the heating season has not even started (besides, global warming should cut their heating costs). I know a landscaper that can't keep up with his business because he is so busy and that would classify under discretionary spending. Unemployment is at an all time low. There is construction going on around every corner.

Edit: (please note this is not personal ihateinternet dating, I appreciate your comments and respect your opinions) I must live in the best part of the country then, because life is good where I am at. p.s., we measure snow by the foot and we get much below zero weather, so I know all about heating bills and seasonal work.
Edit: sorry spillmind, some of my opinion comes from the prosperous state I live in. I know all about the economics where I live and the states surrounding me. If you want to make claims that you know whats going on, you need to at least provide some credible sources (yours don't qualify, the 1st link I go to headlines how Bush wants to destroy America). Thanks the same. Your OPINION has been dually noted. p.s., you are borderline ranting and you did not answer the askers question.

Answer 4

I am not a financial analyst , and don't pretend to know so much as some others, but, when I see people losing their homes, living in the streets when before they worked regularly , and did okay but now on welfare and starving some how this makes me think things are not so good, and I just returned from Asia and our dollar has taken a beating there, and to my surprise America is importing food stuffs from China, but we still pay our farmers subsidies?? what the hell ??? please you smart people explain this to me. if we put our people growing food for example and stop our subsidized farmers from destroying their crops to keep the price up our dollar would certainly improve and every one knows when the dollar is devalued it makes our prices higher and with so many people out of jobs this is pure stupidity,also our great fearless leaders have created an environment for so many company's to move to other country's for lower operating cost and taking these jobs from Americans, and the prices gos even higher. another example of our great leaders at work,as we all know a few select people own and run our country, don't you think it is time for America to be returned to Americans?? if your thought are the same as mine then lets organize and get our country back,

Answer 5

We are and it will get worse. The middle class in the US is also receding with the economy. Soon we will be like Mexico, rich, poor and poorer... With everything BIG companies and the little business' slowly disappearing we have no way to build a strong resilient economy. The BIG companies make their money off of the world economy now and the US is not a BIG concern. The day of the quality materials and pride in you country and it's wares are gone from the USA and so goes our economy... Recession is only the beginning.

Answer 6

Yes and it will get worse. The downturn in the housing market has dragged the entire economy down with it. It also doesn't help that several thousand factory jobs have been cut recently, we still have an enormous trade defecit, oil prices are still high, and healthcare continues to eat up more and more of everyones budget.

The final straw could come with the January economic reports detailing the nations holiday season spending. If those numbers are down significantly over last year (say 5-10%), the economy will stumble - but not fall - and the misstep will rock the world. Hopefully the report is ok and we can pull out of this pit. The housing industry won't get any better until next spring at the earliest.

Answer 7

i think our economy may be too big to have what used to be called a recession effect the entire economy.

there can be no doubt that the middle class is shrinking and most corporations know this and have sought (and found) overseas markets.

people are supporting many corporations by being caught in loan shark style credit card debt meaning that these companies literally don't need to do anything to continue to make money off of these people.

though many of these same companies are squeezed by the credit crunch that they themselves helped to fuel.

but i think in this instance there are personal solutions.

i paid off all of my credit cards, paid off my car and am perfectly happy renting a great place (not taking on huge debt to own a house or condo).

i now have no credit cards, but have all of the atm cards that i will ever need - this means that my cards are tied to money that i actually have and i finance NOTHING.

i can aggressively save for my retirement and have started a small apparel company.

do what's good for YOU and screw the govt and the corporations who have done nothing for any of us...

Answer 8

harley, your statement is based on your opinion, you don't have a single source to back up what you are saying. just because you perceive something to be true, it doesn't make it true.

the fact of the matter is that the Fed and international banking cartel that leeches our tax dollars (interest) (national debt) has been injecting money into the market and the economy to keep it from crashing. it should have crashed by now.

and if you really want to talk about how the economy is doing, check out what the bush banking adminstration wants to do with merging us with canada and mexico.

Answer 9

No, stop listening to the doom and gloomers.
What is wrong is people we not educated to the down side of the Easy money home mortgage ads and over spent.
Statistics are showing, many people are living credit card to credit card. They are willing to let their houses go before they would the credit card.
At some point, folks need to take responsibility for their actions.
There is action being taken at the government level to help some to convert to the Fannie Mae system.
But as for the US economy, it is stable, if any thing the issue is curbing inflation.

Answer 10

The stock market is still booming. The globalist are making a killing. The well being of the middle class American is inconsequential to these people.