Who is getting hit?

Who is really getting hit by the ‘economic crisis’? I haven’t been impacted yet and I am wondering how I might get impacted. I would like to hear how others are getting impacted. Ok so maybe the guys who just graduated are not finding jobs but that’s because of the ‘hype’ that the economy is bad. And perhaps the problem is supply/demand and not the economy. After all the US financial system is based on bubbles and the same money exchanges hands and goes to whoever comes up with the latest scam. So maybe those who bought a house that they couldn’t afford are getting hit. But there is no free lunch. So if you cant afford to buy that nice pair of shoes on credit anymore, you are getting hit. But its makes perfect sense. I rent. I don’t own. I am not feeling anything at the moment. To cut the rambling short, this is a made up crisis IMHO.

Any company that needs to tap the credit markets will be hit. i.e…Reliant Energy is getting smoked for having to raise one bil in capital, or FPL who had to pull the plug on a $400 mil wind power project. Several major companies have announced layoffs…not just banks. Alcoa is cutting capacity. Shipping companies are taking a hit…look at the BDI (baltic dry index). Last week was worst week ever for BDI. Jefferson County in Alabama is unable to make a bond payment on some its sewer bonds and they are in serious need of getting a credit extension…which they will pay through the teeth for. Credit is everything to our economy…the biggest credit expansion in the history of the world has finally slowed…if not stopped for now. I realize that you don’t feel it directly… but make no mistake…we are in a recession…whether or not the #s indicate it.

There is a massive trade-down effect that is about to occur. We already new it was happening at the margin, but as we slip further into this mess, people are not going to pay premium prices for goods. This means anyone with a more expensive branded product could be in for it. Companies with private label offerings, will be relatively better off.

How is this not a few dozen holding the economy and the market hostage for ransom. The ransom being the ‘bail out’?

Also remember that some of the people on this forum have been laid off in the past few months. Many of you who were expecting huge bonus might not have received it. Also remember that those who had stocks of any of the failed companies have seen their money evaporate overnight. All of them have (also) been directly hit.

Right, any companies that need to borrow for capex or other expenditures are not going to be able to do it. They may downsize or go under. Hope you don’t work for any of these. If your landlord has an adjustable mortgage, your rent will go up at the next opportunity. If you use credit cards at all, they will likely lower your credit limit and be extra vigilant about charging you the highest rates your contract allows. Even if you are not impacted, lots of people around you will be, and it will be depressing. And you won’t have as many opportunities to sell your skills because there will be lots of unemployed competition. Yuk.

I don’t have any credit debts, my cars are paid off. I have a 30 year fix mortgage at 5.25%, I have 6 month of saving if I lose my current job. So…I guess I am ok.

ws Wrote: ------------------------------------------------------- > I don’t have any credit debts, my cars are paid > off. I have a 30 year fix mortgage at 5.25%, I > have 6 month of saving if I lose my current job. > So…I guess I am ok. Definitely OK, assuming the workers at the gas station where you fill up your car, the teachers who look after your kids, and the farmer who grows your food are all in the same situation with no credit cards, plenty of cash, and a car to get to work. Also assuming the job market improves within 6 months. We live in an interdependent economy. You’re going to be affected at some point.

I will be willing to spend a lot of my hard earned cash to bail out anyone who needs it IF AND ONLY IF I can first see some accountability. How many people have been put on trial for the mortgage fiasco? How many bonuses have been recouped?

I’m graduating in December, and have 8 interviews in the next two weeks. Seems like companies are still hiring in financial services, big 4 financial advisory, and F500 corporate finance. Although I did have interviews scheduled with Wachovia IBD, which of course were canceled. It’s definitely more competitive, but there are lots of opportunities available. Anyway, if I don’t get a “good” job by the time I graduate (not operations or financial adviser), I’m going to the Marine Corps officer program. Part of me says to just do it anyway, but I’ve put a lot of effort into passing L1 and learning finance, so we’ll see what I can get first.