Will this have a cascade effect on the US Economy?

[network engineer]

The Asian markets are open now and are taking a beating with the Nikkei index has falling 6%. It is likely that the US markets will see a significant drop in early trading when it opens in 10 hours. This news may have a dramatic effect on holiday shopping as Americans pull back or cancel their Christmas spending. That could cause further economic problems for retailers that have already struggled in a soft retail market. Normally many companies file for bankruptcy in the beginning of the new year, after a failed holiday season. That number cund rise consideribly.

I for one have already agreed with my family that no one will be spending money on gifts this holiday season. How about everyone else?

Edited December 12, 2008 by network engineer

[cletus8269]

ditto, we cutting back. i'm spending about $50 on immediate family and 25 on extended.

[thegriffon]

You do realize that's why you're in a recession? If you've got it, spend it. If you don't Obama and congress will do it for you, and they're only gonna take it out of your pocket to do so.

[Intrepidation]

Well we don't have tons of money but we are working with what we've got to get gifts for Christmas. Every other month most of the money I make goes to our ridiculously high car insurance...this is the one month were I want to spend it on something besides lousy insurance.

[regfootball]

You do realize that's why you're in a recession? If you've got it, spend it. If you don't Obama and congress will do it for you, and they're only gonna take it out of your pocket to do so.

the big problem in the economy right now is lack of consumer confidence. and that is because of jobs being lost. i can't recall anytime i've been alive where people have been more paranoid about losing jobs and businesses being blatantly open about foretelling job cuts.

i still maintain that housing bubble crash was not entirely due to subprime adjustments, but the fact that during the bush tenure, unemployment rose, underemployment rose drastically, and real wages declined for most Americans while prices of essentials went through the roof.

this did not need to happen.

in the end bush and his cartel found their way to rob you of your home and investment equities. they extorted your tax money to make themsleves rich through the war and banking fiasco. they've enslavened you to work more to pay for more expensive essentials and health care and in the end, stripped you of the ability to be in investments.....so you would sell low back to the thieves, so they can kick out the middle and low class investors and just turn around and sell it again when prices go high.

what a legacy.

Edited December 12, 2008 by regfootball

[loki]

in the end bush and his cartel found their way to rob you of your home and investment equities. they extorted your tax money to make themsleves rich through the war and banking fiasco. they've enslavened you to work more to pay for more expensive essentials and health care and in the end, stripped you of the ability to be in investments.....so you would sell low back to the thieves, so they can kick out the middle and low class investors and just turn around and sell it again when prices go high.

what a legacy.

don't you mean the bank(FED) cartel? we were warned about giving up the control of our "currency" by jefferson.

[avant1963]

Loki - good call:

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802)

[loki]

Loki - good call:

thanks.

did a whole project about central banking in a class this semester. research, paper, presentation.. wasn't too bad, it was for a 100 level course. hehe

[BuddyP]

Well so far retail sales are up roughly 2% this year. People are complaining but still spending. It hasn't effected us.... yet. Lower gas prices have put more money in my pocket too.

[cletus8269]

You do realize that's why you're in a recession? If you've got it, spend it. If you don't Obama and congress will do it for you, and they're only gonna take it out of your pocket to do so.

personally im looking at buying a house soon so my #1 goal is paying off as much debt as i can before the property becomes available. my family all agreed on it. our needs are taken care of, frivilous spending isnt needed to enjoy the Christmas season.

[DSFD506]

personally im looking at buying a house soon so my #1 goal is paying off as much debt as i can before the property becomes available. my family all agreed on it. our needs are taken care of, frivilous spending isnt needed to enjoy the Christmas season.

Sure you don't wanna pay scrooge down the road some more money for that big red christmas present ? hehe Maybe his christmas present will be a shop closed sign.

[haypops]

personally im looking at buying a house soon so my #1 goal is paying off as much debt as i can before the property becomes available. my family all agreed on it. our needs are taken care of, frivilous spending isnt needed to enjoy the Christmas season.

Sounds like a responsible plan to me. I've heard that when paying down multiple credit cards, it isn't a good idea to close them up. It is important to keep the ratio of $$ owed to credit limit low and a closed credit card decreases the total credit limit. My youngest daughter is making the same plans the you are. Her husband's job has twice disappeared because of job lay offs, but the third time seems a charm. Good luck to them and you too!

[ellives]

While I agree with a lot of what you say, as are most things in life, it is not that simple. Don't give up on the bankers as the source of our problems just yet:

http://www.cbsnews.com/video/watch/?id=4668112n

the big problem in the economy right now is lack of consumer confidence. and that is because of jobs being lost. i can't recall anytime i've been alive where people have been more paranoid about losing jobs and businesses being blatantly open about foretelling job cuts.

i still maintain that housing bubble crash was not entirely due to subprime adjustments, but the fact that during the bush tenure, unemployment rose, underemployment rose drastically, and real wages declined for most Americans while prices of essentials went through the roof.

this did not need to happen.

in the end bush and his cartel found their way to rob you of your home and investment equities. they extorted your tax money to make themsleves rich through the war and banking fiasco. they've enslavened you to work more to pay for more expensive essentials and health care and in the end, stripped you of the ability to be in investments.....so you would sell low back to the thieves, so they can kick out the middle and low class investors and just turn around and sell it again when prices go high.

what a legacy.

[ellives]

Interestingly, the Nikkei is up by 5% right now.

The Asian markets are open now and are taking a beating with the Nikkei index has falling 6%. It is likely that the US markets will see a significant drop in early trading when it opens in 10 hours. This news may have a dramatic effect on holiday shopping as Americans pull back or cancel their Christmas spending. That could cause further economic problems for retailers that have already struggled in a soft retail market. Normally many companies file for bankruptcy in the beginning of the new year, after a failed holiday season. That number cund rise consideribly.

I for one have already agreed with my family that no one will be spending money on gifts this holiday season. How about everyone else?

[Drew Dowdell]

Sounds like a responsible plan to me. I've heard that when paying down multiple credit cards, it isn't a good idea to close them up. It is important to keep the ratio of $$ owed to credit limit low and a closed credit card decreases the total credit limit. My youngest daughter is making the same plans the you are. Her husband's job has twice disappeared because of job lay offs, but the third time seems a charm. Good luck to them and you too!

Never close cards unless the resulting debt/credit line ratio is under 30%. Then, only close cards that carry a fee.

Keeping open a credit card that has no fee and no balance costs you nothing and is an additional positive mark on your credit report. In today's credit climate it is important to use an empty credit card every 3 months or you risk having the credit car company close the account on you. You only need to buy a tank of gas and then pay it off. Just enough to keep the card active.

[cletus8269]

Never close cards unless the resulting debt/credit line ratio is under 30%. Then, only close cards that carry a fee.

Keeping open a credit card that has no fee and no balance costs you nothing and is an additional positive mark on your credit report. In today's credit climate it is important to use an empty credit card every 3 months or you risk having the credit car company close the account on you. You only need to buy a tank of gas and then pay it off. Just enough to keep the card active.

the cars i have are both active accounts. cell phone is on autopayment on one and DirectTv is on the other.

[haypops]

Never close cards unless the resulting debt/credit line ratio is under 30%. Then, only close cards that carry a fee.

Thanks for the detail. This makes a lot of sense.

Getting back to the original topic:

With unemployment claims "reaching their highest levels in decades, states are running out of money to pay benefits, and some are turning to the federal government for loans or increasing taxes on businesses to make the payments." Benefits may become insolvent in 30 states over the next few months while funds in Indiana and Michigan have "already dried up."

How's that for a "cascade effect onthe US eonomy"!