[malamute]

Originally Posted by darstar

The problem is , every one stopped spending. Its the lack of confidence in the Economy , why people are not buying cars..... has nothing to do with some " moral " spending abandon. Thats a cop out. yes , people should have saved more , thats irresponsible , even though its been the American way.
However , if no one spends , there goes the economy , right down the toilet. We are in a deflationary spiral now , and by Government spending , we may crawl out , ... until the next shoe falls. have you seen whats happening to the price of Gold... its because of the flight to safety , again , lack of confidence.

I think people are still spending. The problem is the ones who always spent only if they had the money are the ones who are still spending, it's the people who always bought on credit who are now very far behind and who have crashed the credit system with their massive debt are causing the problem. Of course people without jobs now are also not spending so there's a domino effect.

Those people who always buy cars paying cash can still do so and those with high credit ratings can do so but are probably being a little cautious about adding more debt and decide just to keep their used vehicle longer. The people who need a 6 to 8 year car loan are the ones not buying.

[mkfarnam]

These days, things change so fast that Degrees and experience has a hidden expiration date. Once you get started with you career it's easy to keep up with the changes,but once you get away from it, it's going to pass you by and you might as well kiss it good bye.

[darstar]

Originally Posted by malamute

I think people are still spending. The problem is the ones who always spent only if they had the money are the ones who are still spending, it's the people who always bought on credit who are now very far behind and who have crashed the credit system with their massive debt are causing the problem. Of course people without jobs now are also not spending so there's a domino effect.

Those people who always buy cars paying cash can still do so and those with high credit ratings can do so but are probably being a little cautious about adding more debt and decide just to keep their used vehicle longer. The people who need a 6 to 8 year car loan are the ones not buying.

The " massive debt" you speak of is that shared by everyone. It has to do with the imbalance of trade. We are in so deep that there is no way out , a fact now shared by most everyone. We owe so much to China that they have , now , acquired ownership of the United States.
Preserving your cash , in these very uncertain times is a smart move. Good advice is not to buy anything you can live without if you have to , with cash , if , you can help it. Don't use CC cards to by food and consumables. Take advantage of all loan assistance on your home loans , if you can with any means that is available through Government help. Always maintain at lest 8 months cash reserves to live on. If it means not paying your mortgage to do so , do it. Do not buy any thing new , including cars. Plenty of used stuff available at half the cost.

[kimba01]

Don't pay your mtg? That seems like dangerous advice unless you are looking to foreclose, don't you think? What would be the upside of that?

[CortlandGirl79]

Originally Posted by kazoopilot

I'm graduating from college this year, and many people I'm graduating with plan to leave the great state of Michigan. Many are heading to Sunbelt states like Texas, Georgia, North Carolina, and Arizona. It's true, there are more jobs in other states. However, unless God calls me to go somewhere else, I'm staying. As long as I can find a job that pays the bills, I will be fine. It doesn't have to be a professional job - I'll dig ditches or scrub toilets at McDonalds before I leave Michigan! To me, it's not worth leaving home to find a job - especially one that could go away next week. I'd rather make $8.50/hr in Michigan than six figures in the desert. In my opinion, you can't put a price on home and quality of life.

I'm not judging anyone who leaves - you have to do what you can to support yourselves and your families (if any). However, the economy here WILL turn around and there WILL be more jobs in this state. Things will get better.

Good for you! I feel the same way about Northeast Ohio.........you'd be hard-pressed to get me to move to Columbus. C-bus is just as bad as many of those sprawling sunbelt cities.

I also just graduated in December, and although things aren't as horrible here as they are in SE MI they are pretty darn close. I live in the Youngstown area, so you can imagine getting a good paying job around here has been a challenge for the past 30 years. Even so, i can always do retail or call center management. If i have to i'll go apply for that manager job at Taco Bell before i move south!

[mkfarnam]

Originally Posted by kazoopilot

I'm graduating from college this year, and many people I'm graduating with plan to leave the great state of Michigan. Many are heading to Sunbelt states like Texas, Georgia, North Carolina, and Arizona. It's true, there are more jobs in other states. However, unless God calls me to go somewhere else, I'm staying. As long as I can find a job that pays the bills, I will be fine. It doesn't have to be a professional job -

before I leave Michigan! To me, it's not worth leaving home to find a job - especially one that could go away next week. I'd rather make $8.50/hr in Michigan than six figures in the desert. In my opinion, you can't put a price on home and quality of life.

I'm not judging anyone who leaves - you have to do what you can to support yourselves and your families (if any). However, the economy here WILL turn around and there WILL be more jobs in this state. Things will get better.

Sorry, but in order to qualify for those jobs you have to be Certified from south of the border,

[Diane Giam]

Originally Posted by kazoopilot

I'm graduating from college this year, and many people I'm graduating with plan to leave the great state of Michigan. Many are heading to Sunbelt states like Texas, Georgia, North Carolina, and Arizona. It's true, there are more jobs in other states. However, unless God calls me to go somewhere else, I'm staying. As long as I can find a job that pays the bills, I will be fine. It doesn't have to be a professional job - I'll dig ditches or scrub toilets at McDonalds before I leave Michigan! To me, it's not worth leaving home to find a job - especially one that could go away next week. I'd rather make $8.50/hr in Michigan than six figures in the desert. In my opinion, you can't put a price on home and quality of life.

I'm not judging anyone who leaves - you have to do what you can to support yourselves and your families (if any). However, the economy here WILL turn around and there WILL be more jobs in this state. Things will get better.

Alot of people from Michigan have moved to Nashville, TN. They are all over here.
Country Music has also made a song about detroit, coming out in March-

YouTube - John Rich - Shutting Down Detroit

Diane G

[darstar]

Originally Posted by kimba01

Don't pay your mtg? That seems like dangerous advice unless you are looking to foreclose, don't you think? What would be the upside of that?

Suzy Orman seems to think having cash reserves is THAT important.... And , SHE is quite conservative. I think you should be able to do both , even if it means you would be a month or two behind in the mortgage.

[MGD]

Originally Posted by darstar

The " massive debt" you speak of is that shared by everyone. It has to do with the imbalance of trade. We are in so deep that there is no way out , a fact now shared by most everyone. We owe so much to China that they have , now , acquired ownership of the United States.
Preserving your cash , in these very uncertain times is a smart move. Good advice is not to buy anything you can live without if you have to , with cash , if , you can help it. Don't use CC cards to by food and consumables. Take advantage of all loan assistance on your home loans , if you can with any means that is available through Government help. Always maintain at lest 8 months cash reserves to live on. If it means not paying your mortgage to do so , do it. Do not buy any thing new , including cars. Plenty of used stuff available at half the cost.

Yep...cash is king...even large firms with well paid accountants seem to have forgotten the first and foremost rule of accounting. Cash Is King.

[MGD]

Originally Posted by darstar

Suzy Orman seems to think having cash reserves is THAT important.... And , SHE is quite conservative. I think you should be able to do both , even if it means you would be a month or two behind in the mortgage.

Also, all those people whose houses are foreclosed AND the remaining ones who have some bank's name on their mortgage cause its not paid off...I hope the lesson they are learning is the one Robert Kiyosaki tried to tell everybody: the house you live in and pay mortgage on is NOT an asset, it's a LIABILITY.

Assets are not a bill every month. Assets are things that are yours that you can or do make money off of.

Now a house that you buy and rent out to someone else and let THEM pay your mortgage...THAT'S an asset.

I always thought that but kept getting corrected in business classes and nobody gave me a good reason why it's an asset and why a car with a car payment is an asset if you have this monthly bill due on it and when you don't PAY money someone comes and TAKES it from you. (They basically said good question but that is how the bank classifies it and that's GAAP...i said that makes no sense though...it's misleading)

Even if i don't insure my car (which i own, it's a used car), no one will take it. And i can sell it, as i am in the process of doing right now, and make money. That car is an asset.

If I lose my job that car is still mine and canstill make me money.

If i am making payments on it and lose my job...the note piles up unti it ruins my credit and they take it...doesn't sound like much of an asset.