The Global Recession - How is it affecting you?

**brentpresley** · #1 (**permalink**) 10-26-2008, 05:33 PM

So let's all face it, we are in a recession. And if we are not there, we are fast on the way.

I want this thread to be about the PRACTICAL, DAY TO DAY differences you have noticed.

For me, as some of you know, I sell a LOT of computer hardware. In the past three weeks, I have sold no servers at all, and only 3-4 CPUs. Since I have been doing this, I have never seen this kind of slow-down.

Furthermore, it doesn't seem like price is an issue. I have lowered prices, and even talked to competitors, and it just seems like there are absolutely no buyers out there right now.

**Gneisenau** · #2 (**permalink**) 10-26-2008, 05:38 PM

So far so good for our company. However, we foresee a drop in refinery work and power plant work next year. We get a lot of our revenue from these two markets. Next year could prove to be a bad year for us and so by extention for me.

Maybe I shouldn't have bought that new car this summer after all.....

**Clue69Less** · #3 (**permalink**) 10-26-2008, 05:42 PM

My ebay business is running down about 50%. My photography clients are stalling and holding off from paying my fees. There is a worried attitude everywhere. Local businesses have closed their doors all around here. Restuarants are hit hard.

**MagicLess** · #4 (**permalink**) 10-26-2008, 05:43 PM

In my personal life, well, the price per gallon of gas is nice.

For work, well, people smoke more in times of turmoil, and fill cigarette orders, so I'm good. I was told things are supposed to start slowing down... nope!

**brentpresley** · #5 (**permalink**) 10-26-2008, 05:45 PM

Gas prices right now are the only silver lining I have found.

But saving $15-20 a week in gas is not making up for my lost sales.

Afrodisiac · #6 (**permalink**) 10-26-2008, 05:49 PM

Everything costs so much more than it used to. My friend asked me how much my Nano cost, and I said 179, and right now (I bought it a month ago) it is going for 219

This is terrible.

**CapnBFG** · #7 (**permalink**) 10-26-2008, 05:58 PM

I saw today that Linens 'n Things is having a going-out-of-business sale. I've never been in their store, so I don't know any history of their business.

At work they have cut out all frivolous expenses. No more purchasing of things (books and software) through department resources and no more travel expenses unless upper management approves it in advance. I talked to my uncles recently who are both EEs and work for software companies, and both of their employers have done the same.

Oh, and gas has dropped in price. It was down to $3.13/gal for regular last week when I filled up.

**randomizer** · #8 (**permalink**) 10-26-2008, 06:00 PM

I get paid about 30% more, but prices have gone up for everything. We're still paying $1.50/L or more for petrol, but it should be cheaper.

**JumpingJack** · #9 (**permalink**) 10-26-2008, 06:09 PM

No change for me -- steady as she goes.... I have money stuffed in various places, some exposed to the crisis, some not ... the equity i have lost in the market downturn will return once the hysteria fades and things start the heal so i am not in a panic....

Afrodisiac · #10 (**permalink**) 10-26-2008, 06:12 PM

Oh ya, and my parents have lost around 20k dollars with some rough stock ****.

**arisythila** · #11 (**permalink**) 10-26-2008, 06:18 PM

Im still a poor bum, Web hosting has almost halted. nobody wants to pay, so in the last 2 weeks i've shut off 3 people, total ling about 1000 dollars in back pay. I don't think i will get a penny of that stuff back. Life goes on tho.

Mortgage company just raised my rate on my house from 6% to 10%, Mortgage payments went up about 1000 dollars a month. Companies are getting desperate. Raising the rates of housing was a HUGE slap in my face. considering i've never missed a mortgage payment, and have been with them for about 4 years now.

I am saving about 60 bucks a month on gas.... yay.

**brentpresley** · #12 (**permalink**) 10-26-2008, 06:25 PM

Quote:

Originally Posted by arisythila

Mortgage company just raised my rate on my house from 6% to 10%, Mortgage payments went up about 1000 dollars a month. Companies are getting desperate. Raising the rates of housing was a HUGE slap in my face. considering i've never missed a mortgage payment, and have been with them for about 4 years now.

One thing that has to be remembered about the adjustable mortgage rates is that they are ZERO percent determined by a living being after you sign the papers.

Somewhere DEEP in your mortgage paperwork are the details that spell out the follow:
1) the interval at which your mortgage resets
2) how the rate is determined (this is not magic, it is usually pegged to an "Index" rate like the US Treasury Bill, etc. the month before the reset)

So it's not someone at the bank NOW screwing you. It's whomever got you to sign the papers YEARS ago that screwed you. And they did it good.

If global rates are going up, and they are b/c banks are not lending to each other, then you can expect anything like mortgage and auto loans that are variable to go up as well.

BaldEagle · #13 (**permalink**) 10-26-2008, 06:28 PM

No changes here just waiting to dump my money back into the market. I put some into GE and of course it's down a couple bucks but at 6% dividend I wasn't buying it as a booming growth stock. The NAVY project at work just got funded for 2009 so that's set for the year so steady as she goes. Due to the nuclear demand now though my company is doing ok and actually out hiring, yes I did say HIRING.

Lionhardt · #14 (**permalink**) 10-26-2008, 06:40 PM

Uhh, as far as I go, I get paid in cash, and keep it safe in my house. I would guess I'm only affected by inflation. I WILL be affected by college prices in like 2 years.

My parents have hunkered down more. Fuel oil will cost a lot, 3 minute showers, turned down heat, etc in our house.

All in all I am still thankful to live in the world we live in today, we just need to get our head of of our asses.

QUESTION: How is it possible for every economy in the world to be falling? Doesn't someone have to benefit from someone else's loss?

**randomizer** · #15 (**permalink**) 10-26-2008, 06:49 PM

Mortgage rates have dropped heaps here. The Reserve Bank of Australia dropped official rates by 1% in one go a few weeks ago. Of course, the other banks were quite slow to pass on the savings, some still haven't. One dropped rates a further 0.25% than the official drop though. Some people predicted we might even hit 0% interest rates

While inflation has been halted, and is now decreasing thanks to the Reserve Bank's over-zealous interest rate rises in the last 2 years, unemployment is going up.

**wuzy** · #16 (**permalink**) 10-26-2008, 07:03 PM

Being a cheap arse all my life, lifestyle/spending hasn't changed a bit.
But in work environment I have to remind myself to work harder, climb higher sooner and not get fired.

Quote:

QUESTION: How is it possible for every economy in the world to be falling? Doesn't someone have to benefit from someone else's loss?

Indeed. My conclusion are the billionaires and CEOs (who caused this recession). So much $ from us, but so few of them.
It made perfect sense to me.

Do you you think they care about how recession will affect their spending/lifestyle? They'll probably spend even more!

Quote:

Originally Posted by brentpresley

So let's all face it, we are in a recession. And if we are not there, we are fast on the way.

I want this thread to be about the PRACTICAL, DAY TO DAY differences you have noticed.

For me, as some of you know, I sell a LOT of computer hardware. In the past three weeks, I have sold no servers at all, and only 3-4 CPUs. Since I have been doing this, I have never seen this kind of slow-down.

Furthermore, it doesn't seem like price is an issue. I have lowered prices, and even talked to competitors, and it just seems like there are absolutely no buyers out there right now.

What you'll find is not only are businesses selling less. People are now going onto places like eBay to sell high valued stuff (mainly electronics) they don't need to raise cash. At far lower price so it gets sold.

They cash out, I cash in!

Recession rulz! But I don't want depression, that would push my cheap arse to life threatening limits.

**Dean** · #17 (**permalink**) 10-26-2008, 07:12 PM

I haven't really been affected much yet. Portland hasn't been beaten down as hard as other areas have. I've noticed prices on things going up, but my wife and I make enough money to cover it so it's not a huge deal for us yet.

Also, I haven't noticed a huge decline in business at my work. However, I've been in client meetings where they were joking about things like "well, we'd approve that budget pre-crash, but right now that's not looking very possible". So, I guess we'll see.

It's always shocking to see just how little stands between you and total financial obliteration.

One other thing: I noticed that CraigsList prices have been great for musical instruments!!!

-Dean