I'm going to say it. It's Depression not Recession - Page 2 - PeachParts Mercedes-Benz Forum

Brian Carlton · #16 01-30-2009, 08:39 AM

From Wikipedia:

Quote:

There is no widely agreed definition for a depression, even though some have been proposed. In the United States the National Bureau of Economic Research determines contractions and expansions in the business cycle, but does not declare depressions.

A proposed definition for depression is a sustained recessionary period in which the population is forced to dispose of tangible assets to fund every day living, as was seen in the US and in Germany in the 1930s.

Often, in Canada and the United States word "depression" is used interchangeably with recession, often to simply indicate a deeper or more serious recession. Some economists require a fall in GDP of 10 per cent or more before a recession would be referred to as a depression.

You don't have a "sustained recessionary period where the population is forced to dispose of tangible assets to fund every day living".............not yet.

raymr · #17 01-30-2009, 08:53 AM

Quote:

Originally Posted by cmac2012

I'm not sure that covers it. I mean perhaps in the long run but that doesn't mean some serious unpleasantness isn't ahead of us.

I've had a good bit of anxiety in the back of my mind for years at our steady loss of manufacturing and the growing trade deficit. Such stuff will not continue indefinitely w/o some serious upheaval.

And we're just invested billions of dollars of borrowed money on a really bad investment -- "just" as in for the last 6 or 7 years.

OBL and crew have to be rejoicing at our predicament as they hoped to prove the historical adage: 'Afghanistan -- where empires go to die' at our expense, with Iraq being part of the death blow. BHO is talking about redoubling our effort in Afghanistan (the good war).

2002, 2003 was the time for that, not now.

It's actually pretty easy and quick to build new factories. It's a matter of providing the right combination of incentives to make it happen, and of course there has to be a demand for product.

dannym · #18 01-30-2009, 08:57 AM

If we could put the EPA, OSHA and every other dammed government agency on a leash maybe we could be competetive.

Fitz · #19 01-30-2009, 09:09 AM

There are too many workers in the global economy, and our standard of living is going down. The credit bubble allowed us to avoid this reality for a short time, but now the jobs are gone and so is the easy credit. Either we will continue go down without a fight or there will be trade wars and real wars to follow.

Stoneseller · #20 01-30-2009, 09:56 AM

I'm thinking of investing in GlaxoSmithKline.
Sales of bupropion are bound to be skyrocketing.

pj67coll · #21 01-30-2009, 10:05 AM

Quote:

Originally Posted by cmac2012

I've had a good bit of anxiety in the back of my mind for years at our steady loss of manufacturing and the growing trade deficit. Such stuff will not continue indefinitely w/o some serious upheaval.

Yes. That's essentially what I was saying in one of my posts as well. This wasn't a sudden problem that came on with the property bubble bursting. This is a long term structural problem that's been brewing for years.

- Peter.

Medmech · #22 01-30-2009, 10:11 AM

It's rough out there for sure since Michigan has been in a recession for 4 years I can offer a little advice. Regardless of your job sitution try to build a cash reserve, I know its hard or may be impossible but least try, don't go pouring money into your 401K while you have debt interest, shop smart, eat dinner at home, take your lunch to work, drink Busch Light.

Have fun and just keep swinging the money may not be as easy to make as it was in past years but you can at least maintain.

pj67coll · #23 01-30-2009, 10:14 AM

Quote:

Originally Posted by Howitzer

It's rough out there for sure since Michigan has been in a recession for 4 years I can offer a little advice. Regardless of your job sitution try to build a cash reserve, I know its hard or may be impossible but least try, don't go pouring money into your 401K while you have debt interest, shop smart, eat dinner at home, take your lunch to work, drink Busch Light.

Have fun and just keep swinging the money may not be as easy to make as it was in past years but you can at least maintain.

Indeed. That's exactly what I'm attempting to do. Strategy is three parts.
1) Pay off credit card.
2) Pay off vehicle.
3) Save.

- Peter.

Graplr · #24 01-30-2009, 11:49 AM

Quote:

Originally Posted by Howitzer

It's rough out there for sure since Michigan has been in a recession for 4 years I can offer a little advice. Regardless of your job sitution try to build a cash reserve, I know its hard or may be impossible but least try, don't go pouring money into your 401K while you have debt interest, shop smart, eat dinner at home, take your lunch to work, drink Busch Light.

Have fun and just keep swinging the money may not be as easy to make as it was in past years but you can at least maintain.

I was with you until you said Busch Light..

But I don't drink enough beer for the $2/case or so difference to show. I haven't bought beer for my house in about 3 months. If I go cheap I'm going High Life.

I agree 100% with everything you said. One should get rid of their debt and start saving by shopping smart and eating at home, etc.

Graplr · #25 01-30-2009, 11:52 AM

Quote:

Originally Posted by pj67coll

Indeed. That's exactly what I'm attempting to do. Strategy is three parts.
1) Pay off credit card.
2) Pay off vehicle.
3) Save.

- Peter.

Me as well.
#2 is covered. My cc will be paid in a few months then I have one loan from when I short saled my house a year ago. I will be debt free some time this year then I will really start the savings process.

G-Benz · #26 01-30-2009, 11:56 AM

I know I'm depressed...

Thank God the wifey and I are still employed, but the company did pay cuts across the board (so it's double the percentage for us since we both work in the same place).

The reduced income has really got us strapped...teenagers don't get it though, as they expect life to be business as usual, and continue to demand the same fiscal requirements...

MTI · #27 01-30-2009, 12:00 PM

Quote:

Originally Posted by dannym

If we could put the EPA, OSHA and every other dammed government agency on a leash maybe we could be competetive.

Yes! That's the answer . . . we need to become China! Not that we're not on that road already.

SwampYankee · #28 01-30-2009, 01:14 PM

Once again, CT is a microcosm of the US economy. Comparatively speaking, signifcantly more expensive to do business in thanks to taxes, labor issues, cost of living. Like everywhere else, facing a budget shortfall. So the geniuses that are our state house and senate are proposing a "temporary" tax on businesses to make up some of the difference. First off, taxes are never temporary. They find ways to justify keeping them. But if it doesn't give businesses second thoughts about staying here, it most certainly effects those who might come or expand operations here. And so goes the U.S. The evil corporations who move jobs and operations overseas are an easy target. There are greener pastures. Those who created the current business operation climate should be held at least as responsible.

In our case we're lucky we own our building and property, and it's been paid off for decades. It's one expense that we don't have that many of our competitors in less expensive states do and keeps the playing ground a bit more level. Most are not so lucky.