Everyone else is talking about the economy. How can you not? I don’t even pretend to know much about all of this.
We are all nervous. I don’t know about the rest of you, but we are definitely feeling the impact of this “economic crisis” **
** I find it very interesting that this wasn’t a “crisis” until a few days ago. Didn’t we all see this coming for about 18 months? Bush seemed surprised that he even had to get on TV and give us a pep talk last week. Funny, I thought we were all just ‘whiners’ a few short months ago.
You can’t avoid conversations anywhere. As much as I am unhappy with my job and my house, I am extremely thankful that I have a job and a home.
But I am also very weary of how quickly that can change.
This morning, I went to zill.ow.com and got my current estimated value for the condo we are trying to sell (that is currently off the market). The estimate is $29,000.00 less than what we paid for it. It’s about $7,000 more than our mortgage balance. If we did sell it for that, with realtor commission and conveyance taxes, we’d be in the hole for around $10,000. I know estimated value doesn’t always mean market value, but it doesn’t even matter at this point. We can’t sell.
Aside from the home values, the job security and income factor is scary. I always thought my job was secure. I’m salaried, so business shouldn’t impact me, right?
Wrong.
Two weeks ago, a large law firm in our state imploded. There one day, gone the next. It had been a year in the making, but not too many lawyers knew what was happening.
One third of those lawyers couldn’t get picked up by other firms. Why? They didn’t have a ‘book of business’ of clients to bring to a new firm.
This terrifies me because (a) this imploded firm was pretty much a mirror image of my firm. Same size, same type of practice, business, income, etc. and (b) because I am one of those lawyers who wouldn’t have a ‘book of business’ if I was suddenly without a job.
I don’t have a Plan B. I have zero savings and a mortgage that we couldn’t afford if I ended up unemployed tomorrow. We used to always have a nice cushion in savings ‘just in case’ of a crisis. But since we bought the condo, had to buy a new car, had Shmoo, money goes out faster than it comes in. We are definitely cutting costs like we never have before.
This whole economic downturn is scary, but now a “CRISIS”?!!?
I do know that when I did work in Wall Street, we always referred to Bear.Stearns, Morgan.Stanley, Lehman.Bros, etc. as the “big guns” – who would have thought that a few short years later they would be GONE!
It sounds like this bailout MUST happen because allowing the market to ‘correct itself’ would be catastrophic. But what do I know, I’m just a laywoman.
I remember coming home and telling Lo about 4 years ago that we were going to have a huge foreclosure boom right about now. (I definitely didn’t predict this) But I would plead with borrowers to understand what they were getting into. I had negative am loans that I was supposed to be representing the bank, but I’d try to talk a home buyer out of it. People were getting mortgages out for $500,000 homes but didn’t have the $5,000 (1% deposit) to put down on it. It was a crazy time and banks are to blame, borrowers are to blame and the government is to blame. Frankly, we can pass blame around to pretty much everyone. And those lawyers who let these people close on homes they couldn’t afford, they are to blame too (I’ll take blame).
It sounds like this bailout MUST happen because allowing the market to ‘correct itself’ would be catastrophic. But what do I know, I’m just a laywoman.
I don’t know what’s going to happen. Friday night, I’ll be drinking beers with my college roomie who works in the credit market. I’m sure she won’t want to talk about it, but it will be interesting to get some perspective from a fiscally conservative Republican who works in the heart of the industry.
As for now, I hope all of my friends are doing okay. I have to believe we will all get through this.
BTW – I totally HEART Barney.Frank. Love that man.
melanie said,
September 30, 2008 at 4:17 pm
The economy is scaring the hell out of me. Our untilities have all gone up. Our grocery bill has doubled. We all know what gas has done to everything and Ricks “extra” jobs do not even exist anymore and we are feelin it. We used to have a nice savings too but not anymore. SCARY!
Casey said,
September 30, 2008 at 4:19 pm
I completely agree – most of us say this coming. I started worrying about it all at least 18 months ago – possible 2 years but then, we’re in a unique situation with one income, a mortgage and racking up law school loans. I’m completely stressed about money – about the kids and frankly, since becomign a parent, all this stuff is so much more critical than before I had kids. We have children to protect and to feed and house.
A bailout absolutely MUST happen. I think the people though are saying “What about us?” because bailingout Wall Street, buying up bad mortgages is all fine and dandy but it CANNOT stop there. If taxpayers monies are being used to bailout the big guns, then it must also be used to bailout ALL of us.
There has to be a way were Wall Street can get what it needs while those of us living on Main Street, USA get what WE need too.
And no – I so don’t understand why *they* didn’t see this coming. I really don’t see how this could have slipped under their radar when all of us could see it and feel it. Scary times. I’m scared. Really scared.
KJ and the kids said,
September 30, 2008 at 4:45 pm
I got an email about the bailout. It basically said that if we split up that 85 BILLION dollars for AIG and gave it to everyone who is 18 years + we would all look at getting 425 thousand (after taxes) 295 thousand each. I don’t know about you…..but I could sure as hell use 295 thousand.
That gives 25,500,000,000 right back to Uncle Sam.
With $595 thousand in a 2 adult family…what would you do ?
Pay off mortgage loans -housing crisis solved.
Invest in the market- capital drives growth
Buy new stuff- create jobs
Pay for your parents medical costs- improve health care
Enable deadbeat dads to come clean or else.
Repay college loans- great boost to new grads
Save money in a bank- create money to loan to entrepeneurs
Put away money for college- it’ll be there
Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company
that is cutting back. And of course, for those serving in our Armed Forces.
As for AIG. Sell off it’s parts
Let American General go back to being American General. Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
I know this would never happen. I still think it sounds like a REALLY GREAT IDEA !
Sorry for hijacking your comments
inlocoparentis said,
September 30, 2008 at 5:34 pm
It’s a lot, isn’t it? I have no Plan B either (plus I have $130,000 in student loans that cannot be discharged). Scary.
Bevin said,
September 30, 2008 at 5:44 pm
Guess who got laid off a couple of weeks ago? Me. It’s terrifying. I have no idea what I am going to do. Thank goodness for unemployment insurance and that I got a roommate two months ago!
holly said,
September 30, 2008 at 5:55 pm
I always appreciate your feedback K! Good points.
ILP – I hear ya. My student loans are around $100k. Between that and my mortgage…gulp.
We’ve had some additional interesting discussion around the office today. We represent a lot of municipalities, including bonding. How scary is it when the companies securing municipal and educational bonds have lower ratings than the entities bonded? No sector is untouched.
Michelle said,
September 30, 2008 at 7:28 pm
Wow. Hate to say it, but sometimes it’s nice to know that you’re not the only ones. We both have great jobs, but even with great health ins, the medical bills from the difficult pregnancy, our savings is wiped. We are grateful to have jobs, but it’s a lot of stress trying to keep up all of the hard work you’ve done to make sure you’ve secured the future of both you and your family. We’re right there with you two!
MaMaMia said,
September 30, 2008 at 8:49 pm
All this and we’re going to be putting another one in diapers in days. . . .
I feel like the day the stick showed us 2 lines, the economy went to shit.
The time I was announcing my pregnancy to my work, we were laying people off.
I’ve always been known for my great timing.
joanie said,
October 1, 2008 at 12:51 am
i hear ya on the barney frank part. and nancy pelosi. did you see her speech? something to chew on.
i’m feeling pretty good about being in nursing right about now
A said,
October 1, 2008 at 1:12 am
We sold 0ur house and took a loss. Heck, we had to sell it to a relocation company because we couldn’t find a buyer. I am lucky we sold it, period.
ELLIE said,
October 1, 2008 at 2:54 am
I know the economy is hitting everyone – my hunnie and I live on retirement – which comes out of mutual funds – not good!!!
I am trying to stay positive – because everything else scares me.
I hope your life settles soon – and schmoo stops using a bottle and watches sesame street – those are good things….
take care
Ellie
meg said,
October 1, 2008 at 4:03 pm
It is very scary and seems to be impacting everyone. I hope we see a major change soon.
merr said,
October 1, 2008 at 7:07 pm
Man I have to admit that I know nothing when it comes to politics or the economy. I guess I figure “What I don’t know, can’t hurt me!” I have to ask Sum because everyone at her work always talks about it. The kids and I haven’t had much to talk about! LOL!
Sonya said,
October 1, 2008 at 8:27 pm
This is crazy and there is no excuse for it. Someone HAD to see it coming and only did it become “critical” when it couldn’t be hidden any longer. We go from a “solid economy” one day to this the next. I don’t think so! I’m wondering if they were hoping it could stay underground until AFTER the election.
I just wish we were more directly – positively – impacted with the bailout plan. I just don’t see that happening. I know our expenses keep going up but our (single) income *most definitely* isn’t keeping up. AND – I feel like we are trying to keep it simple. It isn’t like we are living the high life and buying unnecessary things or taking fancy family vacations.
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October 7, 2008 at 5:17 pm
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