Home › Forums › Financial Markets/Economics › Nightmare Scenario Building??
- This topic has 150 replies, 20 voices, and was last updated 16 years, 6 months ago by
patientrenter.
-
AuthorPosts
-
February 9, 2008 at 5:57 PM #11771February 9, 2008 at 7:59 PM #150555
kewp
ParticipantI think everything you posted is pretty accurate.
Hard to say whether we will have a recession or depression, though. Especially since I don’t think there is a textbook definition for depression other than ‘long recession’ (which is exactly what I think this will be, anyway).
There is likely to be unemployment on a large scale, probably not 25% like the 30’s though. Maybe more like 10-15%. I think new construction is going to stop and the economy will lose two other jobs for every one lost RE gig.
Those that still have jobs will face lower salaries, fewer raises and a reduced standard of living brought about by inflation and the destruction of consumer credit. Additionally, many that were planning an early retirement will find they will have to keep working, due to lost 401k and home equity.
The end result is everyone is going to have to learn to live within their means. I’m sure for many that is going to seem like a depression indeed!
Regardless, I saw this coming a few years ago and planned accordingly. It’s somewhat comforting that the sacrifices I’ve made over the past few years were worth it.
February 9, 2008 at 7:59 PM #150815kewp
ParticipantI think everything you posted is pretty accurate.
Hard to say whether we will have a recession or depression, though. Especially since I don’t think there is a textbook definition for depression other than ‘long recession’ (which is exactly what I think this will be, anyway).
There is likely to be unemployment on a large scale, probably not 25% like the 30’s though. Maybe more like 10-15%. I think new construction is going to stop and the economy will lose two other jobs for every one lost RE gig.
Those that still have jobs will face lower salaries, fewer raises and a reduced standard of living brought about by inflation and the destruction of consumer credit. Additionally, many that were planning an early retirement will find they will have to keep working, due to lost 401k and home equity.
The end result is everyone is going to have to learn to live within their means. I’m sure for many that is going to seem like a depression indeed!
Regardless, I saw this coming a few years ago and planned accordingly. It’s somewhat comforting that the sacrifices I’ve made over the past few years were worth it.
February 9, 2008 at 7:59 PM #150826kewp
ParticipantI think everything you posted is pretty accurate.
Hard to say whether we will have a recession or depression, though. Especially since I don’t think there is a textbook definition for depression other than ‘long recession’ (which is exactly what I think this will be, anyway).
There is likely to be unemployment on a large scale, probably not 25% like the 30’s though. Maybe more like 10-15%. I think new construction is going to stop and the economy will lose two other jobs for every one lost RE gig.
Those that still have jobs will face lower salaries, fewer raises and a reduced standard of living brought about by inflation and the destruction of consumer credit. Additionally, many that were planning an early retirement will find they will have to keep working, due to lost 401k and home equity.
The end result is everyone is going to have to learn to live within their means. I’m sure for many that is going to seem like a depression indeed!
Regardless, I saw this coming a few years ago and planned accordingly. It’s somewhat comforting that the sacrifices I’ve made over the past few years were worth it.
February 9, 2008 at 7:59 PM #150842kewp
ParticipantI think everything you posted is pretty accurate.
Hard to say whether we will have a recession or depression, though. Especially since I don’t think there is a textbook definition for depression other than ‘long recession’ (which is exactly what I think this will be, anyway).
There is likely to be unemployment on a large scale, probably not 25% like the 30’s though. Maybe more like 10-15%. I think new construction is going to stop and the economy will lose two other jobs for every one lost RE gig.
Those that still have jobs will face lower salaries, fewer raises and a reduced standard of living brought about by inflation and the destruction of consumer credit. Additionally, many that were planning an early retirement will find they will have to keep working, due to lost 401k and home equity.
The end result is everyone is going to have to learn to live within their means. I’m sure for many that is going to seem like a depression indeed!
Regardless, I saw this coming a few years ago and planned accordingly. It’s somewhat comforting that the sacrifices I’ve made over the past few years were worth it.
February 9, 2008 at 7:59 PM #150915kewp
ParticipantI think everything you posted is pretty accurate.
Hard to say whether we will have a recession or depression, though. Especially since I don’t think there is a textbook definition for depression other than ‘long recession’ (which is exactly what I think this will be, anyway).
There is likely to be unemployment on a large scale, probably not 25% like the 30’s though. Maybe more like 10-15%. I think new construction is going to stop and the economy will lose two other jobs for every one lost RE gig.
Those that still have jobs will face lower salaries, fewer raises and a reduced standard of living brought about by inflation and the destruction of consumer credit. Additionally, many that were planning an early retirement will find they will have to keep working, due to lost 401k and home equity.
The end result is everyone is going to have to learn to live within their means. I’m sure for many that is going to seem like a depression indeed!
Regardless, I saw this coming a few years ago and planned accordingly. It’s somewhat comforting that the sacrifices I’ve made over the past few years were worth it.
February 10, 2008 at 8:35 AM #150715gracie
ParticipantI agree with your observations….I just didn’t understand
what are : Jingle mail and “taking the inside out” type walk-aways….February 10, 2008 at 8:35 AM #150975gracie
ParticipantI agree with your observations….I just didn’t understand
what are : Jingle mail and “taking the inside out” type walk-aways….February 10, 2008 at 8:35 AM #150983gracie
ParticipantI agree with your observations….I just didn’t understand
what are : Jingle mail and “taking the inside out” type walk-aways….February 10, 2008 at 8:35 AM #151002gracie
ParticipantI agree with your observations….I just didn’t understand
what are : Jingle mail and “taking the inside out” type walk-aways….February 10, 2008 at 8:35 AM #151074gracie
ParticipantI agree with your observations….I just didn’t understand
what are : Jingle mail and “taking the inside out” type walk-aways….February 10, 2008 at 8:58 AM #150739Bubblesitter
Participant“Jingle mail” was a term that was probably coined in the 80s or earlier. During that housing downturn, underwater homeowners (with negative equity) would just put their in the mail to the bank and move out.
We are seeing a significant rise in owners just walking away.
This has huge implications on the housing downturn.
http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020714
“taking the inside out” is former owners trashing the house on the way out of their foreclosed house
February 10, 2008 at 8:58 AM #151000Bubblesitter
Participant“Jingle mail” was a term that was probably coined in the 80s or earlier. During that housing downturn, underwater homeowners (with negative equity) would just put their in the mail to the bank and move out.
We are seeing a significant rise in owners just walking away.
This has huge implications on the housing downturn.
http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020714
“taking the inside out” is former owners trashing the house on the way out of their foreclosed house
February 10, 2008 at 8:58 AM #151008Bubblesitter
Participant“Jingle mail” was a term that was probably coined in the 80s or earlier. During that housing downturn, underwater homeowners (with negative equity) would just put their in the mail to the bank and move out.
We are seeing a significant rise in owners just walking away.
This has huge implications on the housing downturn.
http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020714
“taking the inside out” is former owners trashing the house on the way out of their foreclosed house
February 10, 2008 at 8:58 AM #151027Bubblesitter
Participant“Jingle mail” was a term that was probably coined in the 80s or earlier. During that housing downturn, underwater homeowners (with negative equity) would just put their in the mail to the bank and move out.
We are seeing a significant rise in owners just walking away.
This has huge implications on the housing downturn.
http://money.cnn.com/2008/02/06/real_estate/walking_away/index.htm?postversion=2008020714
“taking the inside out” is former owners trashing the house on the way out of their foreclosed house
-
AuthorPosts
- You must be logged in to reply to this topic.