Just now feeling the effects of the downturn in the economy

[CathyA]

We, personally, are really feeling the effects now, rather than 1-2 years ago. Also, seems like the schools are really feeling the brunt of it now.
How's everyone else doing?

[bae]

Our local economy is wrecked. We tend to lag the main economy on both upswings and downswings, as we rely mostly on tourism, real estate, and second/vacation-home construction for most of the employment/revenue in the county.

We are down to one title company from four, most of the real estate agents have cut their staff by 70%, only a handful of building permits were issued last year and this year so far, my water system has sold one single membership over the past 12 months instead of a more normal 30, 1/4 restauraunts in our village have closed up shop and the others are struggling, local artists aren't selling any big-ticket works, and so on.

We voted down a school bond measure twice last year, and school bonds had never failed to pass ever in the past.

Crime is way up here, from a baseline of nearly zero.

[Mrs-M]

We too are feeling and noticing the effects more so now than a year or so ago. Everything is in slow-motion- people included, and when we (DH and I) talk with store and shop owners the same response resounds, "it's been slow". Average- affordable homes that once went as fast as produce at the market are now sitting unsold, the market not even holding an idle, and the over-the-top spending we were seeing (in our area) soon after the height of the recession was announced has ceased.

DH and I talk about it all the time and when we mention spending (particularly past spending- post recession spending), we refer to it as "shallow spending". People spending money they didn't have based on the prospect of job security and comfort, banks handing out money like no tomorrow, and people choosing to take off their "specs" to allow themselves the freedom to view the landscape with no end in sight.

Well, calm and restraint has arrived just as DH and I suspected it would, and so has much of the bold and brash aura that many possessed before and after the crash. In a sense it's smartened many up and brought them back down to planet earth again- with the rest of us, and we are again seeing people getting creative in the way of employment opportunities and offerings. An almost back to grassroots basics again.

[lhamo]

Here in CHina massive amounts of government stimulus and a continuing housing bubble have meant that this downturn has been less severe here than in the US and many parts of the world. But inflation is rising and that is bringing more social discontent, which the gvt. is very concerned about. That is leading to major new social investments.

Personally, the main part of my job may get whittled back due to federal budget cuts (I work for an organization that manages a lot of federally-funded government exchange programs), though we are hopeful that the priority placed on US-China relations will keep the budget from being slashed as much as it might be in other places. But if there are massive cuts to the agency that funds us, that might be difficult to pull off. We are try to develop new programs funded by non-government sources. Just sent of a proposal draft for one major program yesterday. If that comes through it should probably secure my job for the next 8-10 years. DH's job is a bit precarious not for financial reasons, but due to other factors. Actually, I am guessing that the organization he works for probably has done quite well during the downturn -- they would have been able to pick up lots of good investments when things were cheap.

I was catching up on my Planet Money podcasts yesterday, and found this one really fascinating -- it focuses on excerpts of a diary written by a lawyer from Ohio during the Great Depression. It is out in book form, too:

http://www.npr.org/blogs/money/2011/02/22/133967994/the-tuesday-podcast-inside-the-great-depression

I wonder what we will think when we look back on this period 50 years from now, and what -- if anything -- we will have learned.

lhamo

[flowerseverywhere]

Our housing and prices did not go up nearly as much here in middle class surburbia as the rest of the country so our housing prices only went down 10- 15%. We have few foreclosures and my neighbors put their house on the market (he was downsized) and it sold for a fair price in a few weeks. Now the 4000-5000 square footers with inground pools and three or four car garages are not having such good luck but that is a different class then where I live. Most of us are squarely middle to perhaps upper middle class working people in my neighborhood.

I do see food prices soaring, teachers are being laid off and some companies are planning to close and have cut back- especially car dealerships. There has been little increase in crime except in the nearby city where there are a lot of young black men who are at war with each other. I anticipate that worsening soon as social programs and school spending decreases.

Our governor is proposing drastic cuts and a property tax cap that will have a trickle down effect in services, with the reasoning that it will help business locate here.

all I can say is if I had kids in school today I would seriously consider taking the responsibility for the bulk of their education in my own hands. I made sure my kids knew how to read, write and do basic math when they were young and I am working on that with grandchildren now. Fortunately the parents agree with me and the input of all of our resources and time, as well as a lot of reading time and little TV time will allow them to be well educated. I feel bad for all the kids who will fall between the cracks in these large classrooms all day and with stressed out in debt parents when out of school.

[Gardenarian]

My town is not doing well. The school district (about 400 students) is short $1 million. We did just pass a parcel tax for the schools (it passed by 80%.) We have quite a few stores that have gone out of business and are just sitting there empty. Housing prices have not fallen, but houses are taking longer to sell. The town is cutting police, fire, and public service staff. Recent college graduates are unable to find jobs anywhere (aside from babysitting and the like.) It's bad.

[Yppej]

Where I am the job market sucks and older people are not retiring so the stock market can't be doing all that great though supposedly it is up. Some are both working and collecting Social Security, some are working partial year, and others are working full-time. Those few that do retire are not replaced. It does make it hard for people starting out to find work. Local government budgets are tight and I'm lucky my mayor is fiscally conservative and refuses to spend money we don't have or raise taxes or fees. I expect her to handily win re-election this year.

[iris lily]

Real estate values dropped another 12% here.

[pinkytoe]

Our state is certainly feeling the effects which then hits cities with budget cuts, teacher layoffs, etc. My city has somehow marketed itself as a mecca for jobs so people keep moving here everyday. We are probably much healthier economically than many places with new businesses opening everyday. Real estate remains flat though. We have money for bizarre things like F-1 racetracks but we lay off teachers. That is to say, the wealthy continue to have money to back their pet projects and they have decided this is a hot spot.

[RosieTR]

Mixed here. The housing market continues to slide and I think there are still a *lot* of foreclosures that are being held back from the market. Two neighbors moved out recently, giving up their houses. OTOH, I have seen more "we're hiring" and "help wanted" signs around town which is a hopeful sign.

[Spartana]

Real estate values have plunged by close to 50% in many areas of SoCal where I live. But. because I've been renting, it hasn't affected me personally. I actually benefited from it because I just bought a new place in Riverside County (which has seen drops of close to 75% - YIKES) for WAY WAY less then it would have sold for in even a normal market (i.e. not the hyper inflated market in the early 2000's). But there is high unemployment (over 15% in Riverside County I think), a hugh volume of foreclosed properties, numerous buisness closures, and the lack of funds from property and sales taxes means the entire infrastructure is being greatly effected.

[CathyA]

DH's business has slowed down considerably. Its looking a bit better, but we won't get any returns on that for awhile. We've gotten to the point where we're using savings to pay bills and that's about gone. Both our kids in college have overused their credit cards and that just adds a whole lot more worry to me. I seem to be the only one in the family with good financial sense. Its very frustrating to see such debt when DH's business is at a low point.
Why is it so hard for people to realize that if no money is coming in, your spending has to drop too? Its very frustrating.

[Float On]

Why is it so hard for people to realize that if no money is coming in, your spending has to drop too? Its very frustrating.

I so agree. I finally had to put my foot down and tell my husband to scale back the business and go back to working for someone else for awhile or scale back the marriage which would force the scale back of the business because I run the business end of it. The money our business was hemorrhaging was horrific and I was at risk of a nervous breakdown. Our personal economy currently stinks and I was hoping to live long enough to see it turn around again. Now that he has been working for someone else for a few weeks it is like a huge weight has been lifted off of me....I just may keep breathing now.

[CathyA]

I'm glad things are turning around for you a bit Float On! I'm in an awkward position. I don't work, yet I feel that I have better business sense than my husband. I never wanted to work for him, because its too frustrating dealing with him in that situation! And he won't give up things he likes, even when we don't have the money. I think he'd be bankrupt if it weren't for me. He can never say no to the kids, even if it would mean putting us in the poor house. And he can't give up eating out or drinking his wine. Its sooooooooo frustrating. Sorry to vent so much!

[Alan]

Why is it so hard for people to realize that if no money is coming in, your spending has to drop too? Its very frustrating.

Tell that to our federal, state and local governments. And, as long as we're spreading the word, how about our public sector unions as well?