Someone who knows these things....what does the economic mess mean for the average American?

[Critters2]

I'm no economist, I just follow what I get from those who are. So, my question is how bad will this get for most people? A caller on Suze Orman last week asked her if this could mean breadlines, and she said it might. What say you? Will it be that bad?

Thanks for any insights. I've got to make a hospital visit, so will check responses later. Thanks in advance! :hi:

[RUMMYisFROSTED]

1. Worse than you think. Better than you fear.

[livetohike]

2. I'm going for optimism here.....so what I think is this:

The credit market will eventually flow again, hopefully soon. This means that people will be able to get loans for their businesses, loans for homes and student loans, etc. Right now things are locked up.

The longer there is no money out there to loan, the worse it is for businesses who borrow to make their payrolls. This means people will be layed off and unemployment will rise. Right now it is 6% which is low compared to the Great Depression.

If you have a 401K or other investments in the market, the average American is seeing their value decline; however you own shares and shares do not disappear. This means when the market turns around their worth will increase again.


I'm hoping this weekend's meeting results in concrete steps to solve this world crisis and we can get back to the business of putting Obama in office and all the other smart people :-).

[Warpy]

3. Lots of unemployment

even more than now. People with kids in tow banging on your door and begging for food. Stupid men in suits pretending they know something while dragging their feet on the real reforms this country needs. Conservatives blaming the people begging for food for being weak and lazy, jobs are plentiful and the fundamentals are sound. Lots of horseshit in the paper about Obama's role in creating the crisis that people with memories beyond a nanosecond will know to laugh at. More petty crime by people who think they're too good to beg but not to steal. Boarded up housing while people go homeless. Food being dumped to try to bring the price up while people go hungry.

Most of us will adapt and manage to hang on. We need to be kind to people who are in trouble.

Most of all, we need to teach children, grandchildren and great grandchildren about this and where it comes from.

[kestrel91316]

4. No money. No income for my small business.

No way to pay payroll. No way to pay rent.

No way to buy a slightly better car to start living in.

[ThomWV]

5. That he or she will never be able to retire

If you've lost over half of your retirement savings and you know Social Security is not going to provide you with a livable income then you know you will be on the job until the day you die.