Who is really worried about the economy?

[Zoocat]

Last night at a party everyone was talking about stuff and I said I was really angry with the financial wizards who got us into this economic mess. I am also very worried about the country's budget deficit with all these bailouts.

No one expressed much concern even though many were having tough employment situations. One person even said that she was hopeful that Obama will get us out of this mess (!!!). It made me wonder if people are just not paying attention or they are willfully ignorant. Maybe it's just too much to think about?

[ziggy29]

I'll choose option 2.5. I'm not doomsday-level pessimistic, but I don't think we're going to shoot into a strong recovery, either.

It feels like things are improving a bit in the here and now, and there may even be a "recovery" underway, but I don't feel like the recovery will be very strong and it may even be a short break from a double-dip recession. I just don't see the job growth that will cause a huge break to the upside in the economy.

Having said that, *personally* I'm much less worried about the economy than I was a week ago since my better half just got what seems like it should be a rather secure job with solid benefits (even if the pay does suck).

[crazy connie]

Far too many have saved way too little and those who have a semi-decent jobs think the retirement fairy will float along and sprinkle magic dust on their paltry funds. Many of them are laughing at the pain and angst that the super savers are encountering.

I get ill whenever looking at the national debt clock. It frightens me to think of what asinine economic leveling the gov't will be resorting to in the coming months and years.

[noworkethic]

There is only one thing which REALLY worries me about the economy---the chance of future high inflation.

[Moemg]

I'm really concerned about the unemployment not so much for me but for my daughter and my SO's sons .

[FUEGO]

This is just another valley in the continuous series of economic cycles. Expansion then contraction, then expansion then contraction...

I do feel more optimistic about the economy itself now versus 2-3 months ago, simply because I think everyone else is more optimistic about the economy. People are spending money. Many of my clients are actually building new neighborhoods, new shopping centers, etc (first news of ANY of this since probably Sept 2008). Just like it seems consumers and businesses flipped the spending switch off suddenly in Sept-Oct 2008, they have flipped it back on in April-May 2009.

No comment regarding the stock market's future. Other than returns from March 6, 2009 forward will be higher than from May 22, 2009 forward. Closing the year up 20+% or more wouldn't surprise me, nor would closing the year 20+% down.

[Notmuchlonger]

3. I have very little faith that things will be better 5 years down the road. I hope I am wrong.

[bbbamI]

Quote:

Originally Posted by crazy connie Far too many have saved way too little and those who have a semi-decent jobs think the retirement fairy will float along and sprinkle magic dust on their paltry funds. Many of them are laughing at the pain and angst that the super savers are encountering. I get ill whenever looking at the national debt clock. It frightens me to think of what asinine economic leveling the gov't will be resorting to in the coming months and years.

What Connie said.

I've have people tell me, "I'll never be able to retire. I'll have a tag on my toe as they wheel me out of my office." Then they'll laugh.

I don't think it's a bit funny.

fWIW, I don't worry too much about the economy, but I am concerned. I just stick with the plan that I've had for the past 20 years, hope for the best and plan for the worst.

[JOHNNIE36]

*personally* I'm much less worried about the economy than I was a week ago since my better half just got what seems like it should be a rather secure job with solid benefits (even if the pay does suck).[/quote]

Ziggy, if I were you I'd be worried about the economy. In the news today was an article about the UAW reaching a deal with GM (good news in itself). The article also mentioned GM closing 16 factories with jobs lost topping 21,000. One of the plants being closed is the the one from which I RETIRED, a sheet metal stamping plant in Grand Rapids, Michigan. This plant was built the year before I was born (1935). It was one of the oldest GM plants but also one of the most productive because of the labor base. Dutch! I was the Project Manager of a program know as Plant Modernization. $450M expenditure (1986 dollars). GM will paobably move all the equipment we installed but with the job loss (approx 3000), that will equate to 18000 jobs on the outside supporting the Grand Rapids facility. Not good news for anyone. However all you Socialist out there ought to be happy that things are going your way. Sorry for the ramblings.

[ziggy29]

Quote:

Originally Posted by JOHNNIE36 Ziggy, if I were you I'd be worried about the economy. In the news today was an article about the UAW reaching a deal with GM (good news in itself). The article also mentioned GM closing 16 factories with jobs lost topping 21,000. One of the plants being closed is the the one from which I RETIRED, a sheet metal stamping plant in Grand Rapids, Michigan.

Didn't say I was not worried at all -- just less worried than before. In this economy wouldn't you be more worried, all else being equal, if your paycheck was a single point of failure in your household finances than if you had two paychecks coming in, complete with redundant set of health insurance benefits?

Sure, there's a chance we both wind up jobless, but it's a considerably lower than if only I were employed.

"Less bad" does not equal "good."

[W2R]

Quote:

Originally Posted by ziggy29 I'll choose option 2.5. I'm not doomsday-level pessimistic, but I don't think we're going to shoot into a strong recovery, either.

You beat me to the punch. I was going to vote 2.5, as well. I feel like we are coming out of the recession, but I think we still have a bumpy road ahead for a while.

[armor99]

Quote:

Originally Posted by Oldbabe One person even said that she was hopeful that Obama will get us out of this mess (!!!). It made me wonder if people are just not paying attention or they are willfully ignorant. Maybe it's just too much to think about?

I think that is a very insightful observation. At present... I think there are way too many out there that are "willfully ignorant" as you have put it. These are the "everything will turn out alright in the end" people.

After years of govt education at our schools, most have been taught to believe that they are incapable of thinking for themselves, so they should not even try. They are content to abandon all personal responsibility and action, and are resigned to let the govt control their lives. In a way it really IS easier. Thinking for yourself is hard work. It takes effort to listen to facts, employ logical thinking, weigh the pro's and con's of decisions, and all of the other nuances of getting through life in a fairly sane way.

When you hear someone saying things like, "Obama will get us out of this mess" ask them.... "so what will you be doing to help get yourself out of this mess?" Dollars to doughnuts.... most will only offer you a blank stare in return.

[Zoocat]

With the multi-trillion dollars our government is borrowing and the likelihood of increased interest rates, I don't see how we (the government) are going to be able to pay off the debt. In fact, the % of our government budget that will go toward interest on the debt is likely to skyrocket. Inflation, inflation, inflation. This scares the heck out of me.

And what Connie said too. I don't know many single women who are set for retirement. When I asked one acquaintance what she thought people would do once they had to stop working, she said that people would band together and live in the big houses. Now that's a plan!! They might be able to make it work though. i hope so.

There's lots to be worried about, I think. But I don't think I have any alarm bells left. It is very tiring to be worried about all this and how everyone will manage. I am trying to find a way to take a step back and distance myself from people who just don't have a clue.

[ziggy29]

Quote:

Originally Posted by Oldbabe There's lots to be worried about, I think. But I don't think I have any alarm bells left. It is very tiring to be worried about all this and how everyone will manage. I am trying to find a way to take a step back and distance myself from people who just don't have a clue.

It's hard to see how it can end well, at least not for quite a long time. I can mentally construct scenarios where it ends up OK -- not the expected prosperity of the post-WW2 standards; those days are over -- even if at a somewhat reduced standard of living. Meaning we won't have mass starvation, homelessness, disease and a one-way ticket to the third world, but it ain't going to be "the Dream" it has been for the last 2-3 generations.

But even then, by the standards of all of history and even today's standards of ALL the world, that ain't too shabby. If we can maintain that perspective, we can muddle through.

[bd68]

I am very concerned about the economy and the country. As others have said, I am most concerned about inflation. Reporters are talking about recovery and the economy is shedding half a million jobs a month...I just do not get it. More people on unemployment and other benefit programs that are just sucking state budgets down. And then mid to long term the entitlement programs are a huge issue. What is really worrisome is that no politician has the stones to speak the truth because they do not think Americans can handle it. I believe the truth is that we are not a wealthy nation. The illusion of wealth over the last 10 to 20 years was built on a foundation of sand (easy credit, people spending their equity <which has typically been a storehouse of wealth and stability for many Americans>, government borrowing <which is a wealth transfer from future generations to the current generation>. The jig is up, government spending, and promises of future spending, need to be cut radically...and until politicians are willing to say this and act accordingly it is tough to be optimistic.
bd

[wolfbay]

The mainstream ethos of America for the past 30 yrs has been to borrow and spend beyond our means on the Federal,state, local &personal level.Ben Franklin is so old school and unamerican.We've got to have inflation to destroy the value of our huge debt. The Fed and Treasury are up to the task. Let the good times roll.

[Steve O]

I think it sucks, and it's gonna get worse

Nothing I personally can do about it though...

Inflation scares me...

All I can do is enjoy my good fortune, try to plan accordingly, and HOPE we can vote some of these idiots out next time

[citrine]

In central jersey, it is hard to even think there is a recession....people are still buying and eating out. I am living on supplemental unemployment and savings right now and it is not too bad. I have enough saved up for the future and once I graduate, I am sure that I will make as much as I did when I was in corporate.
I don't think that things will get much worse....but I also don't think we will get back to the free money crap that went on the last few years. I think that the people who know how to live for today and save for tomorrow will be fine.....I do worry about the ones who don't get it even now.

[MichaelB]

I am not stressed nor do I have a bad feeling for the economy. I do believe expectations are totally unrealistic, there are going to be more unhappy folks this time next year, people in general haven’t learned how to make to correct choices, and our political leadership – in total – is still leading us collectively down the (decadent) path we want, not the path we need.

My worry for my children is that I may not have taught them the things they need to know to deal with this.

My focus now is quite self-centered. I think life in the “investor class” lane is becoming riskier, both financially and politically, and this needs to be reflected in my financial plan.

[Independent]

I'll add to the chorus. Personally, I'm fine unless the US goes into complete meltdown. My kids have to find jobs and that worries me more.

We have to consume less in the next decade than we did in the past. This still leaves us richer than we were when I was growing up, but most people aren't old enough to make that comparison.

My big worry is the voters and politicians. They've made a pact where the politicians lie and the voters re-elect them. So the big risk is the gov't turning a difficult situation into a catastrophe.