STYLETHREAD -- LET'S TALK SHOP!

itsapinkthing · Coach

Recession 2008??

kmd · Kate Spade

I worry, too. I have my own business, and this recession has hit me and other emerging designer friends pretty hard the past few months. :(

HeatherLynn · Gucci

I work in the transportation industry and we definitely feel the effects. This past year was the first time in a long time that transportation companies announced losses. It's very interesting to hear about bc investors say that the transportation industry is the first to feel it happen and also the first to feel an upswing. I can't say we have felt that yet. =( I have heard mentioned that it typically lasts 6-8 quarters and I believe we just hit our 5 or 6th one (at least for what we consider a decline). So I'm hopeful that history will repeat itself.

KaffeeKlatsch · Marc Jacobs

Let's just say this...we're suffering.

jacL · Coach

Itsapinkthing, I am not very educated on such matters either but I find our current situation worrisome, as it is hitting home for me. Luckily, my field is always in demand, but my BF is in sales--and it's not going too great right now. My father just got laid off his job too :(

Waiting for that upswing...

pollyjean23 · Marc Jacobs

More displaced workers are coming in for career counseling. In addition to the numerous worried mortgage loan processors I have encountered, I'm noticing that it is taking longer for people to find jobs. But, in a complete opposite direction, we just had a career fair with about 100 companies participating (and about 2200 job seekers). It just depends on the sector and doesn't seem to be widespread.

About living expenses, I'm really seeing it in groceries. jeez.

AllieGurl · Marc Jacobs

Definitly.

I feel it in my own business for sure.

On a personal level - totally. My DH's gas bill every month is so high that it is taking HALF of my income every month just to pay it. Plus interest rates , and my mortgage - I am pretty freaked out.

jj · Kate Spade

Whenever I hear how much others pay for gas each week, it really makes me grateful that I live so close to where I work.

I pay really close attention to how much we spend each month on groceries, and it keeps going up and up! I've started to be more militant about stocking up when things are on sale or passing when they're too expensive.

I don't know if this is based on general worry about the economy, trying to save more or Suze Orman scaring the crap out of me every thime she's on Oprah but in the past 6 mos, DH and I

- have stopped going to Starbucks except on Sunday morning. We bought a coffee maker and make our morning fix at home now.

- stopped going out for lunch during the week. I can't believe how much money that saves.

- keep our thermostat down two degrees because it's disgusting how high our gas bill is

- severely reduced the budget for our outside landscaping plan/renovation because we don't want to overspend what the value of our house is

Suasoria · Chanel

Right now I feel that I have to "hustle" a bit more to earn the same amount, so I think that's a sign of recession.

kenzie · Chanel

Most reports that I've heard are actually predicting a 2009 recession, not 2008. Not sure how accurate they are and I'm sure that doesn't make anyone feel any better.

I can't believe how much gas costs. I live really close to work and I used to go home sometimes for lunch, but now I just stay in the office. I also used to go out to eat on the days I didn't go home, but since I've started staying in the office and brown bagging it, I've saved so much money in food and gas.

Of course, I'm spending more at the grocery store now. What used to cost me about $80-$90 now costs me nearly $150. Unbelievable.

We want to buy a house this year and SO has been working his side job (electrician) like crazy to save up for a big down payment since it's getting harder to get a mortgage.

travelgirl · Kate Spade

Yes, I feel extremely uneasy about the economy. Gas prices are worrying me. I am lucky to work for a company which gives me a company car and pays for all of my gas but my husband drives an SUV and it sucks up gas. We have even considered selling it and getting a smaller, more gas efficient car but we have 3 boys and we really do need the space.

As for my job, I feel it is on shaky ground due to the economy. I'm in sales with a consumer brands company and sales are just down in general which makes us all have "hustle" harder (just like Suasoria said) and I feel like you just never know if you will have a job the next week. I already lost my job last summer due to "restructuring" so I know that nothing is a given.

I feel like the worst is yet to come. I have the desire to just save up and not take any monetary risks. A few years ago we were really considering getting a bigger house but now I just want to stay here and pay this one off.

I also have to say I'm a little miffed about the mess our country is in with the whole sub-prime lending nightmare. How was this able to happen? I think so many people bit off way more than they could chew (gotta love "interest only loans" where you are approved for way more than you can afford) and now we all have to pay for it.

atlgirl · Gucci

travelgirl wrote:

I also have to say I'm a little miffed about the mess our country is in with the whole sub-prime lending nightmare. How was this able to happen? I think so many people bit off way more than they could chew (gotta love "interest only loans" where you are approved for way more than you can afford) and now we all have to pay for it.

Well, that's a little of both sides - people taking on more than they could afford, and lenders not being conscientious about their loan qualifications. But some of those lenders are feeling that bite 'em now, aren't they? And people are losing their homes, which is awful, but I agree with you that individuals have to be responsible for themselves. We've been a nation of credit for years and most people just assume they can rob Peter to pay Paul...but eventually that will catch up with most of us.

BTW, interest-only loans in and of themselves aren't all bad. People have to be smart about what they can afford, and be on top of those loans. DH and I got our house with an interest-only a few years ago, and we refinanced to a more traditional mortgage...but we didn't buy nearly the house we were "approved" for...more like half of that. We knew we couldn't make the payments on a bigger loan. Also, we watched the interest rates closely and refinanced when the time was right.

Unfortunately, his sister and her husband are like a lot of the rest of the general population - apparently had no friggin' clue "how all this works" and got in over their heads. They eventually had to short sell and now their credit sucks (well, it sucks for many reasons) and they are living in a new place under a "cash only" agreement because they don't have any credit. I doubt they'll ever get out from under. *sighs*

BargainQueen · Marc Jacobs

Yup, I feel it, DH is in denial as much as most people around my town. I really, really don't believe all those folks driving around in brand new cars, living in million dollar houses (not mansions) and dressed from head to toe in the trendiest (sometimes tacky) stuff, sending the kids to expensive schools and going on vacations are contributing anything to their retirement accounts or savings.

I'm really worried about DH's job cuz he works in the construction industry, which the real estate market has a direct effect on. However, work is still really good and actually picking up as it usually does in the spring in preparation for the summer. I actually had my review a few weeks ago and my boss mentioned we (including himself) are VERY lucky to have jobs because my old boss (who left the company for a ridiculously high salary) has been out of a job for over 6 months because the company she worked for went bankrupt and she cant find a job.

The funny thing is, I've greatly reduced the amont of money I spend on gas. Mostly because we've stopped going out a lot and stay local when we want to get out of the house. This week I started bringing my lunch to work and challenging myself to do it for an entire month without slipping. It's not worth it to me to spend overpriced food when the economy is so shaky and don't know how our finances will be in a few months depending on how it will affect our wallet.

The good thing about this is...homes are finally coming down to our price range and we've been saving for a good down payment and we may be finally able to purchase a home in the area we haven't been able to afford yet.

atlgirl · Gucci

BargainQueen wrote:

The good thing about this is...homes are finally coming down to our price range and we've been saving for a good down payment and we may be finally able to purchase a home in the area we haven't been able to afford yet.

Yay!! How exciting! I hope you are able to get a home soon!