How has the recent economic turmoil affected you?

[Kraken]

Is that like a patty melt without onions?

Pretty much, except that you can add any traditional hamburger toppings (e.g. mushrooms, bacon) as well as onions. I was looking forward to having one of these tonight -- it's trivia night -- but we decided to stay home and watch the debate. If these were ordinary times, I'd just blow that off -- I already know for whom I'll vote, and my vote doesn't count anyway. But while the meltdown continues I feel compelled to pay close attention.

That baffles me. Why would you pay $3 for the same beer you can have at home for 50 cents?

The same reason you pay $6 for the same beer you can have at home for $2: Wives.

Ahhhh, I forgot that Normal guys don't like their wives. For me, it's all about draft beer. I can't remember ever buying a bottle in a bar. If a bar has no acceptable draft choices, I either leave or drink whiskey. Since the poor economy closed our old trivia bar, and the new bar has only one drinkable draft, the recent economic turmoil might force me to drink whiskey.

[Carpet_pissr]

You won't run into many in the city. In the burbs and exurbs ye shall find them, although not in great numbers. Bucks -- where we did, indeed, end up -- is a redneck magnet just like a Michigan bar: dead deer heads on the pine-paneled walls, parking lot filled with pickup trucks, all the patrons in flannel shirts.

Oh man. I would have loved to have shown that to the wife while we were there. The entire trip, she kept making snide remarks about the differences between where we live and Boston. Implication being we live in an insanely hot and humid, cultural sewer swarming with ultra conservative rednecks, compared to the metro chic, post modern liberal Boston.

Now I readily admit the flaws and shortcomings of where we live now, and it IS in many ways a cultural backwater compared to a Boston or NYC or Chicago, but:

1. The grass is always greener
2. Given the discrepancy in SE v NE cost of living, I am pretty sure we would be hard pressed to live in the city (although I found the food and taxi costs to be in line with what we are used to, strangely)
3. I find the idea of just "up and moving to Boston"...more than a little difficult to implement in reality.

She moved here from Stockholm, so her bar is set pretty high unfortunately.

[Matrix]

Well it looks like Global economy is imploding. Over all USA not doing too bad compared to Asia and Europe, which is scary. It seems like this going to get worse, stocks still thumbing down like there is no bottom. Taiwan and Russia shut down their stock exchanges. Iceland is on the brink of bankruptcy and Pakistan is at the limit of its savings.
I am pretty sure since depression we haven't seen this kind of collapse. Its not just America, its everywhere. This is how some of the post apocalyptic novels start.

[malchior]

Things aren't bad for me, but my company (IT outsourcing consultancy) is starting to lose accounts. We just lost a huge one this week. They are claiming it was for performance, but we think they can't afford the monthly anymore. They are a tourist based hospitality company and they have been taking a beating this year. Also, we've lost 2 other accounts due to implosions in the client company, so it hasn't been a great year overall. We were lined up to double revenue this year, and we'll probably be just a little positive by the end of the year.

My girlfriend's company is on the verge of imploding, and to top it we just moved into a bigger place (after I couldn't get a mortgage back in June), so it's going to be a rough few months. She works as a chemist at a cosmetic manufacturing outfit. They R&D lotions, creams, etc and manufacture them. As of this week, they just lost 75% of their accounts. She been explaining that the clients suddenly don't like their pricing anymore (and they don't charge for the R&D which is generous in that industry). In fact, she said they were demanding pricing that would have been less than the components alone without the R&D, manufacturing, and shipping. Bizarre. The disturbing thing was that she kept saying they were being funny about paying. She isn't very business-savvy, but from what I could eke out, they are now being asked to get paid as the product sells at the POS. Not a good sign for their customers. They've basically trimmed down to bare-bones production staff, and they are starting to lay off office personnel. She is probably one of the last out the door, as she is their only staff chemist with a 4-year degree, but I don't expect them to last out the month.

The good thing for me is, as I mentioned, we are still revenue positive from when the year began and we have hired only expendable people. My life would get hellish if we lost them, but I'm in no danger. The division would fold before I got dropped out the door. So, that's reassuring. I also am still getting job calls even though my resume hasn't been online in almost a year. Good network architects seem to still have a healthy demand.

I figured the banking meltdowns would dump some high quality engineers into the job stream, but we hired two and they are awful (they interviewed well but haven't delivered), so I over-estimated their quality greatly.

I also know two people who are recently laid off and they can't even get interviews right now, but they are still only a couple of weeks unemployed. It's tough to stay positive for them though, because I see the problems over the horizon, and it just doesn't look good.

[Kraken]

1. The grass is always greener
2. Given the discrepancy in SE v NE cost of living, I am pretty sure we would be hard pressed to live in the city (although I found the food and taxi costs to be in line with what we are used to, strangely)
3. I find the idea of just "up and moving to Boston"...more than a little difficult to implement in reality.

The economy here is based on medicine, computers, biotech, and education. We got clobbered badly when the tech bubble burst, but are holding up better than the rest of the US this time around. So far. The regional economy was still growing as recently as last month. Vestigial Yankee frugality limited housing inflation and foolish lending here, ameliorating the damage relative to elsewhere.

Housing prices are down 15-20% from their peak, and still dropping...but the biggest declines have been for oversized houses in the remote suburbs. Urban housing prices and the inner suburbs are holding up better. I don't know what you're used to paying, but this is certainly among the more expensive housing markets. Heating is also expensive, particularly if you're unlucky enough to have an oil burner. Food, transportation, and everything else are in line with any other urban area.

I don't think it's a good time to uproot with no particular plan or reason. If you work in healthcare, high tech, biotech, or academia, though, it's worth considering. Oh, and not to get too political on you, but this is a one-party state. If you're politically conservative, you wouldn't like our government.

[Dan_Theman]

Well, I'm just glad we don't live in Iceland.

My anonymous organization, which depends upon direct income and ROI from various markets like so many others, has certainly felt the crunch from both ends. Unfortunately, that's hard to explain to people when all they tend to see are rising prices.

A good friend in a high position with another large company firmly believes that while his company will stay afloat and wind up faring quite well, their absorption of others will lead to layoffs as position become redundant once the infrastructures are blended. That will be an even tougher sell, imo.

[Matrix]

Economy is fucked. Another near 700 point drop today. Buckle up, its going to be a bumpy ride, is best way to put it.
I am canceling a lot more domains then i thought i will this year. This sucks.

[Little Raven]

Things do seem to be trending downward at an alarming rate. The good news is, at this rate, we simply HAVE to bottom soon.

Still haven't felt it directly yet, nor has anyone I know. (that I know of) A friend just pulled out of a potential home purchase after a failed home inspection...we'll see if she can get financing next time around. (she's hoping for a lower rate, since the Fed just dropped another .5%)

[AWS260]

At least one industry continues to thrive.

[Austin]

My brokerage account is in the toilet. I have sufficient cash to last about a year and make tuition payments. I have added a medium'ish income stream that could help me extend things out for longer if need be. Still looking at health care options though. Probably around $380/month for that with a high deductible. /shrug - Doing alright and will find a little more work next year at some point.

[Pyperkub]

If I were comparing paper net worth from 2 years ago to today, we're probably down on the order of 33%. Any plans to move from our Condo to a House are probably on hold for at least 5 years. Cash flexibility is way down.

On the flip side, the condo is paid for, I'm permanent in my employment and health care, and we're not under any great financial stress. Retirement is a ways away, but with the market doing what it's doing, it's getting further away.

I'm also really concerned about our parents, and their prospects for retirement, and what burden that might represent for us.

[Defiant]

Nope. Well, I guess my retirement funds dropped further, but thats about it.

Oh boy did they. But I'm not going to start messing with it - I think long term.

[Matrix]

here is a scarier news

http://www.financialpost.com/story.html?id=866522" target="_blank

Here is another one.
http://www.rgemonitor.com/roubini-monit ... depression" target="_blank

I just bought silver (gold is too freaking expensive)
Will see how next week goes and i might be buying more silver.

[nasai]

Sell Index products, like verticals, specifically in calls. Sell them in 2 dollar strikes, with a delta of 30 or less. You have limited exposure, and can do very well.

This is not professional advice, nor would I suggest that past performance is indicative of future results.

[Victoria Raverna]

Starting this month, my work hours drop to half so I'll only have 50% income. I moved to new apartment last month which cause my expense to rise. With only 50% my previous income, I have to find other source of income or I'll run deficit monthly. My saving probably can last me running deficit for a year but with the economy going down, I'm not that optimistic that I can find enough new income to go back to surplus in a year time. Also the company that I work for probably not going to last a year if thing don't improve so my 50% will become 0% less than a year without other source of income.

I don't have any debt so if thing go to hell, I can try to sell my 100% paid apartment (probably at serious losses) and live several years from the sale while looking for a way out.

[Matrix]

Well i didn't wait till next week to buy more silver, decided to get more now in case things get worse, converted 20% of my savings into silver. At least i know for sure that if anything, silver will always worth something, which is not the case with pretty much any currency right now.

Then again i read apocalyptic novels, so i am probably exagurating at least a bit.

PS: Just bought machete and military knife on amazon, might as well keep myself prepared.

[Dogstar]

And on a lighter note, a lottery winner has chosen the annuity option, which I was always told you weren't supposed to do.

LANSING, Michigan (AP) -- A winner of a $42 million Mega Millions jackpot in Michigan may do something almost unheard of: receive the money in installments rather than getting a smaller, one-time cash payment.

The winner of the October 3 jackpot indicated a preference for taking the annuity. State lottery spokeswoman Andi Brancato says she can't remember a Mega Millions winner in Michigan ever doing that since the game was launched in 2002...

Lottery winners typically take a lump-sum payment with plans to invest it, but confidence in the market has dropped with the current financial crisis. The Dow has lost nearly 40 percent since closing at its all-time high a year ago.

[Isgrimnur]

I would have always looked at it from a guaranteed income standpoint. No matter what else happens, I have money for the next 20 years coming in. I can still work, go back to school, and do whatever else I want without having to either watch my investments (or my accountant) daily.

[LawBeefaroni]

Cash is worth an awful lot right now though.

[Isgrimnur]

Since no one else is lending, you could set up a little corner S&L stand and start your own business.

[Matrix]

Lol , i buy silver and it drops next day

well one thing for sure, it will go higher then dollar in very near future.

Just bought a bit more silver.

Enough not to worry about liquidity, and also to hedge my bets. Worst comes to worst, i will just sell it off with few bucks loss.

Something tells me that's probably not the case.

[LawBeefaroni]

Lol , i buy silver and it drops next day

well one thing for sure, it will go higher then dollar in very near future.

Just bought a bit more silver.

Enough not to worry about liquidity, and also to hedge my bets. Worst comes to worst, i will just sell it off with few bucks loss.

Something tells me that's probably not the case.

When you say "buy silver" what exacly are you buying?

[Two Sheds]

You know. Forks. Spoons. Serving trays. Silver.

[Matrix]

Here is a link of what i am buying and where . http://www.apmex.com/Product/44447/1_oz ... 10_15.aspx" target="_blank

I am buying coins, just because bars are much bigger and not very exchange friendly if worst comes to worst.

I am not buying collectors coins, because i dont care. I buy for pure silver value.

The big plus, they actually send you the coins, so it is not a silver stock, it is a physical asset.

[pr0ner]

Here is a link of what i am buying and where . http://www.apmex.com/Product/44447/1_oz ... 10_15.aspx" target="_blank

I am buying coins, just because bars are much bigger and not very exchange friendly if worst comes to worst.

I am not buying collectors coins, because i dont care. I buy for pure silver value.

The big plus, they actually send you the coins, so it is not a silver stock, it is a physical asset.

And how, exactly, are you going to be able to sell that stuff later?

[LawBeefaroni]

Here is a link of what i am buying and where . http://www.apmex.com/Product/44447/1_oz ... 10_15.aspx" target="_blank

I am buying coins, just because bars are much bigger and not very exchange friendly if worst comes to worst.

I am not buying collectors coins, because i dont care. I buy for pure silver value.

The big plus, they actually send you the coins, so it is not a silver stock, it is a physical asset.

Ok, just curious. It's not a terrible way to go but as of today those are at about a 40%-50% premium at $14.99. But on the plus side, you are actually holding them (assuming you don't lose them).

[Matrix]

In NYC there is a lot jewelers, there is ebay. Selling wont be a problem, its pure silver. Also this is hedge, i am not putting all my money in it, just about 25%. So if nothing happens, then great, i will still sell it maybe with some loss, if shit hits the fan and economy tanks, silver and gold are as certain to go up in value as sun rises.

The premiums is about 25% from the market price (it was for me when i bought).
If you go to any physical store that sells silver, they either sold out, or charge 100% to 200% mark up, since a lot of people try to get into precious metals as global economy is tanking.

[Matrix]

Just to add, making coins and all that stuff, thats what goes in that mark up. In any retail store, they will change alot a lot more. Even with 50% mark up from market price, we still talking a huge saving compare to buying in retails store. And that if we can buy in retail jeweler. This places rates are pegged to exchange, so you order will go up and down actually as you buying.

[Two Sheds]

I'm putting everything into frozen concentrated orange juice.

[Kraken]

I am reminded of the guy over at GT who locked in his home heating oil price when the market was peaking late last summer, because he was sure that it was going to keep getting more expensive forever. Today crude hit a 13-month low. Just as one should not sell during panics, one must be wary of buying during spikes.

[Matrix]

Its easy to be always weary or rush in. I tend to think when i see shit happen, i need to act. the oil is one thing, but how about whole financial system on a brink of collapse? i think thats enough of a sign for me. And no, i don't want to wait until it starts literally falling apart. Gold, has spiked, silver hasn't, so i don't think your comparison is accurate.

[FishPants]

I've lost around 40-45% of our savings on paper in stock; haven't sold anything but it certainly makes my wife's upcoming mat-leave a little more lean since we were counting on some of that stock to augment lost income for the year...

Economy elsewhere unfortunately has a big impact on where I work now; so we are seeing a rapid decline in business.. The good news is that right now I am being headhunted aggressively by some safer organizations; so there's a bit of light at the end of the tunnel.

Wife and I fight more than we usually do (which is pretty rare for us), and the pressure is on.. Kid #2 isn't going to wait for the cocksteak bankers to unfuck this situation.

[Matrix]

Ok, we are much worse then i thought before, and i have been digging in into this topic. My take on this, we are all fucked. Collapse is everywhere.
Get yourself some physical commodities and sit tight. Sometimes i wish i didn't have this post apocalyptic view on things.

[Kraken]

The sun rose in the east yesterday on another ideal fall day. The omelets at Ashley's were wonderful, as always. An enjoyable drive with the top down brought us to Phil's U-Pick apple orchard out in Harvard. Thanks to the wet summer, this year was the best for apples in the past 30 years. I ate three apples in the orchard and had a couple cups of free cider -- more fruit than I've had in the past year. Then we took the scenic route to Nashoba Valley winery, where they've started distilling spirits in addition to their fruit wines. Their gin is marvelous -- you can really taste the juniper berries. I liked the maple aftertaste in their Northern Comfort brandy. We bought a bottle of dry blueberry wine, some crackers, and some cheese spread, and had a picnic while taking in the view. On the leisurely trip home we stopped at the new British Beer Company restaurant in Framingham. Their draft selection is excellent and I could scarcely decide among all the appealing menu choices. I finally settled on a New England pasty and an octoberfest from a Connecticut brewery whose name escapes me.

If civilization is collapsing, it's doing so pretty gently. With half a bushel of perfect Macintosh apples in the pantry, I'm ready.

[Little Raven]

My take on this, we are all fucked. Collapse is everywhere.

As I write this, the market is at +500 and rising fast.

We appear to have bought ourselves another day.

[Matrix]

Well i changed my prospective a bit as i am learning more about over all status, economy, and anything i can get my hands on. We did buy us some time, nor do i think will it be colapse of the system at least right away. We will see huge deflation in next few month and then inflation after that.

[LordMortis]

My take on this, we are all fucked. Collapse is everywhere.

As I write this, the market is at +500 and rising fast.

We appear to have bought ourselves another day.

That's good because my retirement reports (which are always a day old) have my investments down roughly 50% from last year. Oh, to get back to last October when I was going to pull that money and put it in a low yield low risk money market. That retirement savings was also my unemployment savings. I was getting close to having half my house paid off after taxes and early withdraw penalties. Now if the shit hits the fan, I might as well let them take my house and that would suck because I've throwing a ton of additional prinicple at it for the whole time I've been here.

[Isgrimnur]

Leaving out petroleum distillates, deflation is hard to do these days. Prices are sticky in most non-commodity items. Stagflation is more likely. That being said, most of my money paid out doesn't go to anything that has a changing value. Rent and debt don't drop just because the economy tanks. And I knew years ago to never agree to an adjustable rate anything.

[LawBeefaroni]

My take on this, we are all fucked. Collapse is everywhere.

As I write this, the market is at +500 and rising fast.

We appear to have bought ourselves another day.

Europe appears to have bought us another day.

Germany did their own rescue package to the tune of $680B US. Does that mean their smaller economy was in a much worse state or does it mean that we've only just begun with our $700B. Or did Germany just use a shotgun to kill a fly?

The entire rescue package will amount to about 20 percent of German gross domestic product. Measures taken last week by the U.K. government and the Bank of England including emergency loans and lending guarantees total 500 billion pounds ($865 billion), about 30 percent of GDP. The U.K. government today gave an unprecedented 37 billion-pound bailout for Royal Bank of Scotland Group Plc, HBOS Plc and Lloyds TSB Group Plc.

I think France and Italy are doing the same, too.

[Matrix]

Right now most developed countries doing their own saving, and significant part of developing countries had to shut down trading floors.
One economist, Rubin N, who have predicted this crisis, says stock will hit 7000 in spring before starting to recover. Practically all economists, (including warren buffet and Paul V) belive it will get worse before it gets better. Curently main problem is banks dont trust other banks, so they dont lend. What stock market doing right now is temporary rebound, which was expected. It would either go lower or stablize, with amount of money that FEDs throwing at it right now, it would be hard to imagine not to stabilze at least for short while. Insigmur, the amount of wealthe that was lost, and lack of lequidity right now in the marke, Deflation is the only resolution, if you take a look at commodity markets,its all down by 40-50%, and when commodities goes down, so does prices. Even if Feds start brining in more money (which they do) the amount of decepatation of wealth is enormous. Lord Mortis gave a great example, due to devaluation in his house assets, lets say it was woth 200,000, now its aprrised at 150,000. Yet he still paying same mortage as if it was 200,000, why wouldn't he foreclose, he is paying for whats not there? now mutiply it by xx,000,000 of houses. Problem is, its not so easy to forgive debt now, the banks cant just slash it to apprise value, because all those mortages were calterized and securetized, and now was traded at wall street.