Credit Crunch/Current financial climate

[Triniboy]

What do people think about the current financial state of the US and the UK.

Do you think people will slow down on buying items etc all things look like it is going to get worse. Are you guys beginning to get affected by the credit crunch, how long before you stop buying items?

Varma

[mikedealer]

im not market analyst or financial expert... but when on CNBC they say people are panicking and freaking out, i want to know why they are freaking out and the reasons.

all these idiots on tv are always like "Everything is going to be alright, dont start moving your money around, everything will work itself out... there wont be another depression"....

Well i want to hear from the people that are worried about things, not some comforting nonsense that will come back to bite me later on.

[mrlexan]

depression? well that is how I feel when I look at my 401K and other funds values everyday. I don't care to hear the K-mart blue light special analogy again referencing I am getting more for $ invested, I look at my bottom line and cry, I am loosing my rear..... I know that is short sited, but it hurts nonetheless

[mrlexan]

I guess I should answer your questions... I am not really being affected by the crunch as I have a conventional mortgage for a short period of time (no arms or HELCs) and I pay my credit cards off every month. The only other bills I have are student loans and they are about to be paid off. The only risk I have is I still own a house in Michigan and I no longer live in the state. I have it rented but that could change at any moment, hence the risk. Either way, it would hurt, but I will still be able to pay it.... being part of the solution as opposed to the problem is the right thing in my mind.

Things in terms of buying have slowed down and have been for a long time now. Heck just look at Losi parts/cars sales, you can't get much for them at all these days, regardless of popularity. Prices have been on the decline for a while.

Stop buying, probably not...... this is what I do. I don't go out an party, drink, smoke, drive an Escalade.... my point, I don't sink money into anything else really. I enjoy the hobby, building, restoration, collecting, etc..... it's just what I want to do.

[MOmo]

I definately have watched my spending. Fewer Starbucks, carpooling to work etc. There are several Vintage cars Id love to pick up, and parts Id like to get. I have a couple cars clammering for a BL setup, but I was told a long time ago to figure out how many hours i would have to work to pay for something and that has really made me re-think my spending.

I think the majority of people out there live outside their means. There was an interesting discussion on BBC ( I listen to alot of NPR) about the current state. I think everyone is suffering. My biggest gripe is that the CEOs of LB and ML and othres still walk away with huge salaries and bonuses even if the companies are losing. THAT bugs me.

I really think that there is something to be said for people in the financial industry to prey on the uneducated and sell them on something that really is outside thei budget and unrealistic. They bank on those people falling short and losing their homes and they still walk away with a paycheck.

People need to look at basic business classes that aren't being offered in HS. Personal Finance used to be a class that was manditory in HS and people learned to balance checkbooks, understand % and interest rates etc. So many people are sold on something that they really don't understand and don't get the full picture. Interest Only loans, and people who habitually Refinancing to try and get ahead are actually digging themselves a hole.

Interesting Read:
http://www.time.com/time/business/article/0,8599,1842123,00.html

[markt311]

No chrisis for me, I'm not panicking and cashing out my 401k. I live in an apartment, only a few hundred dollars credit card debt, I don't live over my means though. If I can't afford something I don't buy it. I don't have a $500 car payment, I just have a one year old daughter to spend my money. I think people just need to chill out a little bit, the only real problem for me is gas prices, but what can I really do about that? I have a car and a truck that both get 30mpg, so as far as I can tell I'm doing my part, but my finances are far more simplified than some other people. Is money not tight? nope, some weeks it's a little scary as far as my budget goes. That's why I go to work for 10+ hours everyday. This whole money scare deal in big part is the news media trying to make people have a panic attack, check out Dave Ramsey's website it will give you a new perspective on some things. I don't agree with everything he preaches, but for the most part it's solid information

[fordtransman]

I didn't think I would sell my NIP Reedy Comp Stock Motor, but it took care of a tank of gas. Got me another week.

[Volumiza]

Petrol, electricity, gas, water, tax and food shopping have all risen very sharply over the last 2 years and people over here have definately got less disposeable income. for a long time now people in the uk feel that it's an 'all work and no play' culture here and the sharp rise in living costs have fuelled that perception. the housing market has all but stopped and there's no hope for first time buyers which is good news for landlords as they can charge top money for rent on even modest properties.

Personally, I've started to cycle to work (which is cool as I'm lucky enough to work in the middle of farmland at an agricultural research lab and my journey to work now is all about fields, tweeting birds and fresh air as oposed to traffic jams, fumes and short tempers) as my car (which I'm selling at a huge loss for a smaller car as tax, insurance and most importantly petrol all cost too much) just eats my money and after all, it's just a car.

Food is another bad area, we're constantly told what to eat and follow a healthy diet but the best and healthiest foods are all the most expensive, which actually means it's cheaper to be unhealthy ... go figure! Whereas my food and grocery shopping bill around 6 years ago used to cost around £30-40 pounds it now costs regularly £100.

[edwin pibal]

Over here in Kiwi land things are not much better

the 1 NZ pebble gets 62 US cents

the cash rate is over 9% which makes interest rates about 14% on just about everything

a block of cheese is $14NZ, 1 gallon of milk is $7 NZ.

Houseing here is insane, unless you are earning over $100k a year, you cant afford to repay a mortgage on a house that 3 years ago was 150k less.

Edwin