WILL THE LATEST ROUND OF ECONOMIC CHAOS IMPACT YOU?

[bronzilla]

As of right now the current economic chaos hasn't affected me that directly other than my 401k plan losing some money. My company is part of a GE division and I've watched GE common stock drop about 20% in the last week, about 13-14% this week alone. Luckily, very little of my 401K is invested in GE stock so I'm in decent shape there.

 

My big problem right now is the fact that the facility I work at in northern Illinois has been put up for sale and the future for my part of the business doesn't look very promising. Our gut feel is someone will buy the business at the front of our building and divest itself of our part of the business. So I'm busy looking through CareerBuilder, Monster and many of the other online job search websites. I'm also entertaining the idea of becoming a manufacturing consultant but the problem with that is no health insurance.

 

I also may actually just kick back and sell comics full time for a while should my job in fact be lost in the near future. I've half-kiddingly complained to my wife in the recent past that my day job is getting in the way of my night job (the comics) so I might actually do that for a short time and see how it goes. Maybe I can finally get rid of some of my thousands of dupes.

 

I am more than just a little concerned about the overall financial picture in the United States right now. High gas prices, high oil prices, high electrical bills, high property taxes, home values going down, stock market's in the tank.....right now it's ALL bad news. We're either headed for a deep recession or (heaven forbid) another depression.

 

Shark

You forgot to mention another bad thing...High inflation and the devalued dollar.

But cheer up!! if the high cost of fuel causes us to not be able to heat our homes this winter, we can burn all our Comics to keep warm!!

[Vtcomics]

hate to be a pessimist, but I think we are only in the 5th inning of this mess. Watching these investment banks cannibalize each other by shorting each others' firms into bankruptcy is really disgusting. I've said for years the whole economy is a bunch of smoke and mirrors, propped up by "spend spend spend today and screw the future" mentality of the population, as well as bogus housing bubble of the last 7 years. And this derivative fiasco is really the final icing on the cake. Unbelievable that they let these scam financial instruments be deployed into our markets. Ye reap what ye sow

 

oh, btw....I am still all in on oil services and wifi infrastructure....

[Shadow]

In terms of overall, it's nothing that is a crisis mode for myself and my family. We were fortunate to pay off our mortgage last year so we don't have any great debt over our heads.

 

I've had to cut some things due to what I make at work being down a bit this year but more so because we're paying for my Masters. (My company doesn't contribute.) I think my comic purchases will be down this year and next year by a bit. But, if a new job (better paying) comes along, that may change. And, ideally, when I graduate with my Master in June 2010, I will be starting or on that road to a more intriguing and rewarding job. (ie. More money for comics... )

[tth2]

I have interviews with HCA and Humana next week, so hopefully those will go well.

Whatever you do, don't start telling them about how you collect comics.

[october]

I have interviews with HCA and Humana next week, so hopefully those will go well.

Whatever you do, don't start telling them about how you collect comics.

 

I typically leave that little factoid out of interviews.

[Shadow]

I have interviews with HCA and Humana next week, so hopefully those will go well.

Whatever you do, don't start telling them about how you collect comics.

 

I typically leave that little factoid out of interviews.

 

I just recently interviewed and all I can say is "ditto".

 

BTW, first interview I've had in over 17 years. I actually had to study up a bit.

[Shadow]

I have interviews with HCA and Humana next week, so hopefully those will go well.

Whatever you do, don't start telling them about how you collect comics.

 

I typically leave that little factoid out of interviews.

 

Interviewer: "Why should we hire you for this position?

 

Me: Because I recently completed my JLA run and I can now focus on this job. (thumbs u

[JvR11]

I think the next thing to go is consumer confidence. This buy out of AIG is hugh. I'm surprised the government did a bail out. I think we'll see more mergers...my bet is Washington Mutual is next. Other investment banks are taking a beating just because they are "investment banks". Crazy times. I guess now is the time to invest in some real estate if you have the money...my guess is inflation is going to make the $$ slid more. It's hard to believe at one time the Euro was right on with the dollar.

I'm thinking at least for the next year I'm pretty well insulated except for inflation and home prices.

 

Technically speaking this was not a bail out since the Fed actually bought the company so to speak by getting warrants on all of the equity. The Fed actually stands to make a lot of money off of AIG at the expense of their shareholders. It is a shame that a short term liquidity crisis can bring down a company with a trillion dollars in assets that are mostly good. When the smoke clears most of the write downs will end up being written back up.

 

On the personal side, I consider myself very lucky. I have always traded stocks and since the end of 2006 I made three great moves. I had a lot of AIG and GS and cashed at 72 & 212. I put all of that in XOM and SLB and cashed out at 91 and 114. I then put that in DUG when oil was 147 and rode it all the way down to 91 which gave me a double on DUG. I am thinking about RIG and SLB but have not pulled the trigger yet. But we are very close to a bottom on oil service stocks in my opinion.

 

I really hope we don't see any "golden parachutes". It really urks me when these executives get these sweet deals when the company tanks. If the average joe could see that housing prices were over the top and that lending money to someone with no job and credit was a bad thing...it just leaves me wondering why these investment banks let this go... I'm thinking two things greed and timing. They probably thought they'd have a few good years left to cash in before it all blew up. The government is also partially to blame for allowing these loans to take place.

 

I'd say the people to blame are the ones taking loans that they could not afford to pay back. That seems like the bottom line to me. They dug their own grave on their own free will. The banks just gave them a shovel to dig with.

 

As far as AIG goes. As said before, the government is going to be in on AIG for quite a while. Isn't it something like a 77.9% stake or something like that? And I'd agree, being that the bailout is coming from a federal reserve provision and that it is of a company where the assets are liquid...why would the government not do it since it is clearly written in their power?

Yes People taking loans out they couldnt afford have responsibility of course.

But Banks and Lenders and the employees writing up all those loans made a ton of money off of a lot of ignorant people and a lot of people who just couldnt afford the House. To say all they did was give them a shovel to dig there own grave seems a bit one sided.

 

You know it's these short sales that are killing the stock prices on Lehman and lately the others. It's these hedgefunds borrowing stocks that aren't their own "ganging up" to bring down these investment bank share prices....just more stupid greed. These hedge funds are just betting the share prices will drop so they can cash in. Boy, this all so ruthless. I guess the thing that is really bad is they don't even "own" these shares. They just borrow them for unsuspecting pension plans, stock holders, etc. There really needs some big time clean ups.

[tth2]

Everyone is going to get impacted to a certain extent, but I'm curious how things play out for people here, not that it's any of my business.

I've sold everything, put the family in an old beat-up pick-up truck and we're driving to California to beat the masses of Bankies (laid off bankers) who will be right behind us any day now. With any luck, I'll be able to take advantage of my first-mover status and get a job as a foreman at an orchard, so I can spend the next few years oppressing migrant laborers.

[goldust40]

Everyone is going to get impacted to a certain extent, but I'm curious how things play out for people here, not that it's any of my business.

I've sold everything, put the family in an old beat-up pick-up truck and we're driving to California to beat the masses of Bankies (laid off bankers) who will be right behind us any day now. With any luck, I'll be able to take advantage of my first-mover status and get a job as a foreman at an orchard, so I can spend the next few years oppressing migrant laborers.

 

Excellent decision, Mr. Joad...

[cheetah]

Most of my work deals with environmental compliance for natural gas pipelines. At this point at least, work has been increasing and I've been hiring new people. Given the needs for secondary transmission infrastructure, it should be a hot field for a few years.

 

So I'm still buying comic books.

[delekkerste]

I've sold everything, put the family in an old beat-up pick-up truck and we're driving to California to beat the masses of Bankies (laid off bankers) who will be right behind us any day now. With any luck, I'll be able to take advantage of my first-mover status and get a job as a foreman at an orchard, so I can spend the next few years oppressing migrant laborers.

 

[joe_collector]

I've sold everything, put the family in an old beat-up pick-up truck and we're driving to California to beat the masses of Bankies (laid off bankers) who will be right behind us any day now. With any luck, I'll be able to take advantage of my first-mover status and get a job as a foreman at an orchard, so I can spend the next few years oppressing migrant laborers.

 

[innocuous]

This thread inspired me to check my 401K tonight. I think we need some new filters because "spoon" isn't gonna cut it here.

 

But, nothing is lost unless I sell, and I still have another 20-30 years before I start to think of that.

 

My comic buying has really dried up, but, that is because I'm trying to investment in real estate right now.

[AussieRuss]

All this talk has finally go the better of me so I thought I would check out my Superannuation plan (401k) & share performance over the past 6 months.

 

As of today my Coca Cola Superannuation looks to be down about 2% from 6 months ago.

 

Share portfolio is down 1.5% from 6 months ago.

 

And now the big one. Not sure if this is good or bad.

 

The Aussie dollar has gone from US.95c a month or two ago to US.80c today.

 

I guess that means any books I buy will now cost me more but anything already purchased over th past few months is now worth almost 15% more to me in Australian dollars if I were to sell.

 

 

Anyhoo. Its all hypothetical. ~30 years to go until retirement & not selling many books.

 

Russ...

 

 

[FFB]

King I agree with you but the current situation seems to be a lot scarier than recent crisis in the last 20-25 years. If Greenspan says this is the worse he has ever seen it in his lifetime then I think we are for a couple very tough years.

 

Well, I think that in situations like this, the situation you are currently in will appear to be the worst. Memories tend to fade, so the situation of the past will often appear less significant as time goes on. Not only that, but the living population has not experienced most of our countries history obviously, so the only way for the population to be aware that this situation is not uncommon would be to research it. I'm not saying it isn't rough, but it has a tendency to happen from time to time. I think the media is trying (and successfully) to scare people. I'm not discounting Greenspan either. He is a well knowledged invididual to say the least!

 

For once, I actually think the media is trying to be somewhat level-headed about the news. When the federal government (with a Re publican president) loans a private insurance company $85 billion to prevent its failure, things are bad. When the Russian stock market has to halt trading and the Russian government has to bail out the three main Russian banks, things are bad. (Russia owns quite a bit of our debt.) The head of the IMF is saying that the worst is still ahead of us, and a lot of economists are agreeing with him. What is even scarier is that there aren't that many knowledgeable people who are disagreeing with him. This is not to say that the doomsayers are 100% correct, but there isn't a clear road out of this hole for at least a couple of years.

 

The president doesn't have much to do with it. I'm not sure, but as far as I am aware it requires a vote from the Federal Reserve Board. This provision of bailing a company like this wasn't a product of the President Bush. It was first put into play in the 1930s as part of the Federal Reserve Act.

 

The president doesn't have much to do with it? Who do you think appointed the Secretary of the Treasury or the Chairman of the Federal Reserve Bank? Do you honestly think any of this would have happened without George W. Bush's ok?

 

I am not saying the decision was good, bad, or otherwise. This isn't a political point (i.e., re publicans are bad/de mocrats are good) that I'm making. My point is that you are simply incorrect if you actually believe what you wrote.

[divad]

No impact on me at all.

 

No caviar for you!

[Aman619]

Do you honestly think any of this would have happened without George W. Bush's ok?

 

 

I dont think you meant this as its written. W may have "okayed" it, but only after others made the decision.

[benz]

All this talk has finally go the better of me so I thought I would check out my Superannuation plan (401k) & share performance over the past 6 months.

 

As of today my Coca Cola Superannuation looks to be down about 2% from 6 months ago.

 

Share portfolio is down 1.5% from 6 months ago.

 

And now the big one. Not sure if this is good or bad.

 

The Aussie dollar has gone from US.95c a month or two ago to US.80c today.

 

I guess that means any books I buy will now cost me more but anything already purchased over th past few months is now worth almost 15% more to me in Australian dollars if I were to sell.

 

 

Anyhoo. Its all hypothetical. ~30 years to go until retirement & not selling many books.

 

Russ...

 

 

That's why Pedigree books are still in demand. (thumbs u

[kimik]

Greenspan actually said that this crisis is the worst that he has ever SEEN but not CAUSED? What a crock. This from the guy who went before congress in the mid 90s when the first concerns about derivatives were raised and said they were not a problem and did not need to be regulated. I believe he stated the same BS a few times after that as well (probably around the LTCM debacle). The only reason he is not being prosecuted like any of the CEOs from Enron, Worldcom, etc. is that he knows where all of the other skeletons are on those who would have to aid the prosecution..............