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How bad IS the economy? i'm confused!

I'm confused. we are in a depression - or recession - or whatever they want to call it. but when i remember learning about the 'great depression', it was like, no one had a job, everyone was destitute, lost their home, etc. is that likely to happen, or are we all just going to have to be careful and penny pinch to ensure survival? i'm trying not to panic about all this negative news, but i also don't want to shut the news off and not be informed - ???

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Anonymous

Asked by Anonymous at 8:27 AM on Feb. 18, 2009 in Politics & Current Events

Answers (14)
  • The trick is to not panic. What caused the great depression was essentially panic. Everyone reacted and pulled out of the stock market which caused it to crash. A depression of that magnitude is not likely to happen present day. The Federal Reserve was created after the Great Depression to ensure that the government had the means to take necessary action to prevent it. That being said...once the economy starts on a path like it is on, it is hard to stop. The stimulus package will help but there is really no telling how bad it could get. Make wise choices with your money and make sure you have a rainy day fund. You might need it. (And we're in a recession...not a depression...yet)
    ANGIE409

    Answer by ANGIE409 at 8:30 AM on Feb. 18, 2009

  • Were no where near the numbers shown during the great depression. Were in a bad recession. Here are some facts on the Great Depression.
    http://www.huppi.com/kangaroo/Timeline.htm
    gemgem

    Answer by gemgem at 8:32 AM on Feb. 18, 2009

  • Thanks. I'm being smart with money - and saving pretty good - as much as a person CAN save, when groceries cost what they cost, bills, etc. My husband is not contributing to this much - he is planning on buying a motorcycle this week - an $8,000 loan. well, he's putting $1000 cash down, but still. i told him i didn't see that this was an appropriate time to be taking out a loan, spending that much money on an unnecessary purchase, but he's not seeing past his "WANT" for this motorcycle. its used, its in nice shape, and its the type he's planning to buy in a few years anyways, so he thinks that justifies it. and he says, "its not coming out of our joint account, its coming out of my spending money". SO WHAT, i say,b/c then that leaves more of a burden on me to get groceries, etc....b/c he'll have less spending money - we've fought about it for a week now, and i don't know what to do - so i've given up.
    Anonymous

    Answer by Anonymous at 8:34 AM on Feb. 18, 2009

  • We are no where near a depression. Do I think it could happen? Yes. But I also think that it needs to be put into perspective. The value of the dollar very well may drop during this recession. Especially when we are borrowing money from China and England. So be prepared for the cost of milk, bread, food, and other items to possibly increase. Be prepared for more smaller private sector businesses to go out of business in your community. (try and support them over, say Wal Mart, etc when you can)..jmo

    A depression? They day over half of the cafemoms no longer can afford internet access and it seems like a ghost town on here, THEN there will be reason to have concerns. again jmo.. :)
    grlygrlz2

    Answer by grlygrlz2 at 8:37 AM on Feb. 18, 2009

  • Well, so far, all the hospitals in my area are in hiring freezes for new grads until 2010 bc their budgets have been slashed. That is sad bc we always need nurses.

    Jobs are being cut and many people cannot find jobs making what they did before. So they are taking lower paying jobs-if they can find them-going into debt, etc. It is a slow downward spiral right now.

    I think that it will get a lot worse before it gets better.
    JennRN09

    Answer by JennRN09 at 8:41 AM on Feb. 18, 2009

  • The Great Depression consisted of so much more then the stock market crash, there were a number of events that played a large role, the "crash" was just the final straw. Anything is possible, imo. Just be financially smart and don't put all your eggs in one basket :o)
    Anonymous

    Answer by Anonymous at 9:03 AM on Feb. 18, 2009

  • lol. . . We are investing slowly right now, and very carefully. I have found that we are comfortably able to afford what we need, and some that we don't, if I work two nights a week.

    When the media says depression, I don't listen any more. They are full of it- scare tactics that is.
    lovinangels

    Answer by lovinangels at 9:23 AM on Feb. 18, 2009

  • NObama and the Dem's run by Panic Pelosi have used enormously manipulating scare tactics. Study history, it shows that our economy is no where near the numbers associated with the great depression! This porkalicious spendifourous socialist bill has now created an even WORSE economic scenario! They rushed it through so that NO ONE could even read it, because the longer it sat the more people were opposing it. This bill has put us from a recession to a deeper deep recession. Our economy is bad, but not to the magnitude of the great depression. That was a fear mongering scare tactic, that now that the bill is sign, just may come to fruition. NObama's gloom and doom, immediate passing of this bill is disastrous to our already crumbling economy! NObama is nothing more than another Carter.....and we all know what happened then.

    blessed5x

    Answer by blessed5x at 9:45 AM on Feb. 18, 2009

  • To also add, this bill is the largest transfer of power FROM the people to the government! The largest spending spree, the largest bill in the history of the nation!! Just look at how wall street is responding to this bill, EVERYONE is sceptical, EVERYONE knows this will NOT work, we have given our grandchildren the largest debt in the history of our great nation. Capitolism works, look at Ireland........socialism does NOT work, look at ANY socialist country!
    blessed5x

    Answer by blessed5x at 9:48 AM on Feb. 18, 2009

  • don't listen to the panic. I still see restaurants packed. Grocery stores mobbed, etc. It is very important to stay on top of the news, but don't listen to personal opinions about how hard times are. Do what you and your family can afford. think about it? what has changed? in my family, town, etc, NOTHING. just people TALKING about how bad things are. stay positive.
    thundernlight

    Answer by thundernlight at 9:58 AM on Feb. 18, 2009

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