Comments on: Question of the Day – What’s Your Outlook on the Economy? http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 25 May 2012 12:15:10 +0000 hourly 1 http://wordpress.org/?v= By: Mark http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-259491 Mark Wed, 26 Mar 2008 17:21:09 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-259491 I am ridding the fence. I don't see a "full recovery" happening any time soon just as I don't see most of America living on the street. The current situation will ebb into opportunities that will once again carry us to the next downturn, which will carry us to the next up-tick. I live out in the sticks, and in a matter of 2 years saw vacant undeveloped land go from $2k per acre to over $12k per acre. It was a buying frenzy with folks thinking this area (20 miles NE of McKinney, Tx) was the next big boon. The 4500 sq ft house next door isn't even finished built - and is in foreclosure. That being said - of course I have tightened the belt. I even cut the yard lights back to 4 hours instead of dusk-to-dawn. I am staying alert and attempting to position myself so that when the opportunities present themselves - I'll be ready. I am ridding the fence. I don’t see a “full recovery” happening any time soon just as I don’t see most of America living on the street. The current situation will ebb into opportunities that will once again carry us to the next downturn, which will carry us to the next up-tick.

I live out in the sticks, and in a matter of 2 years saw vacant undeveloped land go from $2k per acre to over $12k per acre. It was a buying frenzy with folks thinking this area (20 miles NE of McKinney, Tx) was the next big boon.
The 4500 sq ft house next door isn’t even finished built – and is in foreclosure.

That being said – of course I have tightened the belt. I even cut the yard lights back to 4 hours instead of dusk-to-dawn. I am staying alert and attempting to position myself so that when the opportunities present themselves – I’ll be ready.

]]> By: Chad http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-257102 Chad Fri, 21 Mar 2008 11:51:51 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-257102 my opinion is pretty indifferent. On one hand, you have chicken little in the press saying "dig a cellar and buy an uzi, the sky is falling!", but when i go to walmart and cant find a place to park, the Texas RoadHouse has a 2 hour wait for a table, gas prices hit a near record here last week yet, all four pumps at the station have cars sitting next to them refueling (mostly SUV's), all the available salespeople at Advanced Auto Parts have at least 4 or 5 people in their line while they're trying to balace the phone on thier ear to talk to a customer while trying to look up a heater core for the guy standing in front of them, the economy is still moving pretty good based on how far i have to walk in the parking lot, and how long i have to wait in line to buy something. Since i have no debt, a fully funded emergency fund of 6 months worth of expenses, a fairly secure job (im still having to work manditory overtime to keep up with sales order backlog as they call it at work), Im not too worried about the economy at this point. What DOES bother me is the way price of everything is starting to spike tho, and in my opinion, its getting to be really expensive to buy worthless overpriced junk, that we dont really need just to impress people we dont really like. and RAISE that damn interest rate.. dropping RATE isnt working, since THAT isnt the problem. the Fed needs to BUTT out and let the market correct and fix itself.. everything the Fed is trying to do is just SLOWING the process of the market fixing itself and just making this "recession" take LONGER to cycle thru. my opinion is pretty indifferent. On one hand, you have chicken little in the press saying “dig a cellar and buy an uzi, the sky is falling!”, but when i go to walmart and cant find a place to park, the Texas RoadHouse has a 2 hour wait for a table, gas prices hit a near record here last week yet, all four pumps at the station have cars sitting next to them refueling (mostly SUV’s), all the available salespeople at Advanced Auto Parts have at least 4 or 5 people in their line while they’re trying to balace the phone on thier ear to talk to a customer while trying to look up a heater core for the guy standing in front of them, the economy is still moving pretty good based on how far i have to walk in the parking lot, and how long i have to wait in line to buy something.
Since i have no debt, a fully funded emergency fund of 6 months worth of expenses, a fairly secure job (im still having to work manditory overtime to keep up with sales order backlog as they call it at work), Im not too worried about the economy at this point. What DOES bother me is the way price of everything is starting to spike tho, and in my opinion, its getting to be really expensive to buy worthless overpriced junk, that we dont really need just to impress people we dont really like. and RAISE that damn interest rate.. dropping RATE isnt working, since THAT isnt the problem. the Fed needs to BUTT out and let the market correct and fix itself.. everything the Fed is trying to do is just SLOWING the process of the market fixing itself and just making this “recession” take LONGER to cycle thru.

]]> By: Tim http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-256773 Tim Thu, 20 Mar 2008 21:07:00 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-256773 recession, blah, blah, blah. i'm about as tired of all this recession and credit crisis talk as i am about the u.s. national election. i'm a firm believer that the economy isn't as bad as the media is fueling it out to be. yeah, so what if bear or anyone else falls through? i'm optimistic, despite falling share prices. too many short sellers in the market. there needs to be some serious regulation, though. all these hedge funds shorting, these CDOs and other mortgage backed securities that have no real ability to determine asset value, should all be severely regulated. so i'm pessimistic that people are focusing too much on the effects rather than establishing preventive measures for the future. recession, blah, blah, blah. i’m about as tired of all this recession and credit crisis talk as i am about the u.s. national election. i’m a firm believer that the economy isn’t as bad as the media is fueling it out to be. yeah, so what if bear or anyone else falls through? i’m optimistic, despite falling share prices. too many short sellers in the market. there needs to be some serious regulation, though. all these hedge funds shorting, these CDOs and other mortgage backed securities that have no real ability to determine asset value, should all be severely regulated. so i’m pessimistic that people are focusing too much on the effects rather than establishing preventive measures for the future.

]]> By: GL http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-256333 GL Wed, 19 Mar 2008 23:27:23 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-256333 I agree with Ryan Ward - this isn't the first recession and it won't be the last one, even though it's the first one for me. :) Personally, I view it as a great opportunity to buy stock of my favorite companies at a discount. On the other hand, though, I'm graduating from college in 2 months and it seems like I'll have a hard time finding a job. :( I agree with Ryan Ward – this isn’t the first recession and it won’t be the last one, even though it’s the first one for me. :) Personally, I view it as a great opportunity to buy stock of my favorite companies at a discount. On the other hand, though, I’m graduating from college in 2 months and it seems like I’ll have a hard time finding a job. :(

]]> By: Matt http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-256204 Matt Wed, 19 Mar 2008 16:31:12 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-256204 I think the US economy is already in recession and all of the things that are being done to shore it up aren't going to do very much in the long run. As to if I'm pessimistic or optimistic about it? I'm actually optimistic since this is merely a correction and the economy isn't in a state of complete collapse. Opportunities are still out there and smart money management and investment rules will still get you a good return. I think the US economy is already in recession and all of the things that are being done to shore it up aren’t going to do very much in the long run. As to if I’m pessimistic or optimistic about it? I’m actually optimistic since this is merely a correction and the economy isn’t in a state of complete collapse.

Opportunities are still out there and smart money management and investment rules will still get you a good return.

]]> By: EA http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-256193 EA Wed, 19 Mar 2008 16:12:28 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-256193 I'm pessimistic in the short term, but optimistic long term. I'm not sure that the "economic stimulus" is going to do much other than fill the SUV tank a few times, or push foreclosure off another month. Actually I'd love to see if there's a blip in foreclosure stats because of it. I don't like the softening rates plus inflation thing. My money in the bank is not earning interest as fast as my groceries are going up. But I live in a cold place, and I think there will be some bounce locally as the weather warms up and folks have more money to spend on other things. I’m pessimistic in the short term, but optimistic long term. I’m not sure that the “economic stimulus” is going to do much other than fill the SUV tank a few times, or push foreclosure off another month. Actually I’d love to see if there’s a blip in foreclosure stats because of it.

I don’t like the softening rates plus inflation thing. My money in the bank is not earning interest as fast as my groceries are going up. But I live in a cold place, and I think there will be some bounce locally as the weather warms up and folks have more money to spend on other things.

]]> By: Edwin http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-255991 Edwin Wed, 19 Mar 2008 06:32:14 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-255991 Interesting post; I agree with the rest of the comments, pessimistic short term, optimistic long term. Ultimately markets are cyclical and it's always interesting to see people panicking on either side of the curve. Overall I think you have to be an optimist and see opportunity to buy when things get cheap, opportunity to sell when things get expensive. That helps to take action at the right time and not be paralyzed by fear because there's always plenty going around. Interesting post; I agree with the rest of the comments, pessimistic short term, optimistic long term. Ultimately markets are cyclical and it’s always interesting to see people panicking on either side of the curve. Overall I think you have to be an optimist and see opportunity to buy when things get cheap, opportunity to sell when things get expensive. That helps to take action at the right time and not be paralyzed by fear because there’s always plenty going around.

]]> By: Mrs. Micah http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-255841 Mrs. Micah Wed, 19 Mar 2008 00:48:33 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-255841 Hmm, I just wrote about that for tomorrow. Outlook is that pretty much anything can be lived through. I don't think it'll get as bad for the ordinary person as living in a lot of other parts of the world. But I also think that if people there can manage to live, we can too. In the long run, I'm feeling fairly optimistic. Hmm, I just wrote about that for tomorrow. Outlook is that pretty much anything can be lived through. I don’t think it’ll get as bad for the ordinary person as living in a lot of other parts of the world. But I also think that if people there can manage to live, we can too.

In the long run, I’m feeling fairly optimistic.

]]> By: Ryan Ward http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-255820 Ryan Ward Tue, 18 Mar 2008 23:29:41 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-255820 Personally, I choose not to participate in recessions and I believe that all healthy Americans can make that same choice. We just so happen to have had a confluence of events in the last several years that have us where we are currently. It's not the first time and it won't be the last. The real estate and mortgage issues are national and don't help matters - at least short term. By the end of the year, things should begin to impriove. Incidentally, this is an excellent blog. I wish you had the plugin that would notify me of new comments so I could more easily participate in ongoing discussions without having to check back as new comments would then be emailed to me automatically. It helps to keep the conversation flowing. Personally,

I choose not to participate in recessions and I believe that all healthy Americans can make that same choice. We just so happen to have had a confluence of events in the last several years that have us where we are currently. It’s not the first time and it won’t be the last. The real estate and mortgage issues are national and don’t help matters – at least short term.

By the end of the year, things should begin to impriove.

Incidentally, this is an excellent blog. I wish you had the plugin that would notify me of new comments so I could more easily participate in ongoing discussions without having to check back as new comments would then be emailed to me automatically. It helps to keep the conversation flowing.

]]> By: Kent Irwin eFinPLAN http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/comment-page-1/#comment-255799 Kent Irwin eFinPLAN Tue, 18 Mar 2008 22:27:20 +0000 http://allfinancialmatters.com/2008/03/18/question-of-the-day-whats-your-outlook-on-the-economy/#comment-255799 My opinion, be realistic and optimistic at the same time. There are many reason to be cautious and frugal with gas, food, and health care inflation. Add to that deflated home prices, low savings rates, high consumer debt, and the sub-prime mortgage crisis. In 30 years I've witnessed inflation, stagflation, recessions, saving's bank and junk bond crisis of the 80's, 2 housing slumps, but somehow we got through it all. Don't put your head in the sand, but at the same time focus on being optimistic - you can only control your behavior (e.g., spending) and attitude. Things may get worse, who knows for how long - but they always get better. My opinion, be realistic and optimistic at the same time. There are many reason to be cautious and frugal with gas, food, and health care inflation. Add to that deflated home prices, low savings rates, high consumer debt, and the sub-prime mortgage crisis.

In 30 years I’ve witnessed inflation, stagflation, recessions, saving’s bank and junk bond crisis of the 80′s, 2 housing slumps, but somehow we got through it all. Don’t put your head in the sand, but at the same time focus on being optimistic – you can only control your behavior (e.g., spending) and attitude. Things may get worse, who knows for how long – but they always get better.

]]>