Dow Closes Under 8600 - What's Next?

Zembonez · October 10, 2008

Well, the DOW fell below 9000 today for the first time since June of 2003. It closed below 8600 actually. WOW!

I don't think the sky is falling, but this is a serious issue.

Anybody care to venture a guess what is coming next? The sell off seems to be all over the globe. Strange times.

The dollar is actually up against many foreign currencies. I don't think this is great, mind you, but I don't believe we will see panic in the streets anytime soon. This is not the next Great Depression but it IS an economic downturn that will have a lasting effect on US consumers. Money is going to continue to be tight in some sections of the country and those who can't afford the stuff they "bought" will be going under in large numbers. Housing will continue to see record numbers of foreclosures because we approved loans that people can't afford out of greed. People who bought these houses surely share in the blame... along with lenders that made it easy for them.

What does this mean for us?

First, it's about time that we started to live within our means. The average American family has a whopping 8000 dollars in credit card debt and spends MORE than they make every year. I find that unbelievable. This is certainly NOT true in the Clown houshold... We have exactly ZERO credit card debt. I decided long ago that I would pay up for what I bought or live with the fact that I could not afford it. Apparently most do not think this way. I think that may be about to change whether they like it or not.

What say you guys?

D&SYukonDenali · October 10, 2008

Watching the market the past 10 days I got the same feeling I get at a craps table in vegas when i have too much money in play and somebody throws a 7!

Just glad I'm not retiring anytime soon. Deep down, I think this pain our country will feel will make us stronger (and for some smarter) in the long run.

VMax2007 · October 10, 2008

First, it's about time that we started to live within our means. The average American family has a whopping 8000 dollars in credit card debt and spends MORE than they make every year. I find that unbelievable. This is certainly NOT true in the Clown houshold... We have exactly ZERO credit card debt. I decided long ago that I would pay up for what I bought or live with the fact that I could not afford it. Apparently most do not think this way. I think that may be about to change whether they like it or not.

What say you guys?

+1

The only debt I have is my mortgage, and my equity in my house is greater than what I owe. I do owe $9000 on my truck, but that is only because it is 0% interest. Otherwise it would be paid off. When I got married in 91, my wife had about 10K in credit card debt. I consolidated it and paid it off within 2 years and never allowed her to have a credit card again. She does have a few store-issued cards now, but only for the discounts and I tell her to NEVER let them go past the grace period. I have not paid a dime of credit card interest in my life and she hasn't in 15 years, since we paid off her cards in 93.

Zembonez · October 10, 2008

The only debt I have is my mortgage, and my equity in my house is greater than what I owe. I do owe $9000 on my truck, but that is only because it is 0% interest. Otherwise it would be paid off. When I got married in 91, my wife had about 10K in credit card debt. I consolidated it and paid it off within 2 years and never allowed her to have a credit card again. She does have a few store-issued cards now, but only for the discounts and I tell her to NEVER let them go past the grace period. I have not paid a dime of credit card interest in my life and she hasn't in 15 years, since we paid off her cards in 93.

For the record... I'm not saying I am some kind of credit saint. I have had credit card debt in the distant past. That stuff creeps up on you. I never had anything like 10K and it was a LONG time ago. Thankfully we paid them all off and destroyed the cards. I find that I do quite well without them (and everything is paid for!) I do have my house mortgaged... so I am not completely debt free but the debt I do have is backed up by something that is worth a lot more than I owe on it. My home equity isn't more than I owe just yet though... but it's heading that way!

Debit cards are the only way to go.

VMax2007 · October 10, 2008

Debit cards are the only way to go.

Yep, the only time I use my Visa Gold is when I am out of town on business. Then my expenses are covered and I pay it off within a week after returning.

Debit cards don't work at most car rental places anymore.

2000DV4.8 · October 10, 2008

I'm only 18, living at home, and have very few expenses, but being in debt is one thing that scares the living shit out of me. I currently owe my parents some money that I was PLANNING on repaying this summer, but I haven't been able to work since June. I hate it. I hate the feeling of owing more than I have. I hate seeing something, wanting it, then realizing that I can't buy it, because I owe someone money.

I promised myself when I was about 12 (basically as soon as I knew what credit card debt was), that I wouldn't let myself get into any kind of credit card debt. 3 months with a credit card, and so far so good.

I know I'm inexperienced at life, but to me, it doesn't seem that difficult to just not freaking buy what you can't afford. We'll pull though this, a lot of people will lose money that they don't deserve to lose, but it'll be a giant f*cking wakeup-call to a bunch of other people. At least I hope to hell it is.

Darkanion · October 10, 2008

I think a lot of people who thought this was a "Wall Street" problem are going to be surprised when it hits their street... effecting their jobs and their abilities to live their life the way they have become accustomed to. I think there will be a lot of crying and whining that "the goverment should've done something" and kept them tucked away in their self-involved, over-extended little bubbles...

I think it'll be the fault of the politicians and the banks and "those greedy so and so's on Wall Street that caused this mess." People won't take responsibility for themselves. They'll blame living beyond their means on everyone but themselves.. Heck, it wouldn't surprise me to see idiots suing companies "for making them want stuff." Shrinks will probably come up with some sort of "disease" for it, so no one has to take blame for themselves... "It's the disease's fault, not your's!"

BULL-HOOEY!

The PEOPLE ran up their credit cards. The PEOPLE didn't save money. The PEOPLE bought more house and car and iPods and new cellphones every 3 months and all sorts of other crap they didn't need, which over-extended themselves, and made themselves vulnerable to the least little shake or tremor in the economy.. their job status... health issues for themselves or a loved-one... and anything else that made "living paycheck to paycheck" the dangerous game of Russian Roulette so many people have played for so long... and got away with it... until now.

I hope this doesn't get as bad as it could get. But, I do hope some people learn how to manage themselves, their finances, and their families much much better than they've been doing it the last decade or two.

Ok - I'm going to shut up now, before I get on a roll and get 'warned' or something...

Zembonez · October 10, 2008

Most of those who go under because of this downturn DESERVE to go under. Sure, this will take some innocent victims (and that is very unfortunate) but the vast majority will be those who have spent way more than they were ever making or took out loans for way more than they could afford. They are life's idiots. I have little sympathy for their problems. They do not deserve to have the government come along and "help" them.

Help should be reserved for those who "ACTUALLY NEED & DESERVE IT"

I know this makes me a radical.

EDIT: There is no shame in having credit card debt. We live in a society that says "get it now! - pay for it later". The problem is that thinking only benefits the lender... The borrower gets screwed. I'll be happy if just one person reading this will get the scissors and cut up their credit cards. You have to start somewhere.

VMax2007 · October 10, 2008

Most of those who go under because of this downturn DESERVE to go under. Sure, this will take some innocent victims (and that is very unfortunate) but the vast majority will be those who have spent way more than they were ever making. They are life's idiots. I have little sympathy for their problems. They do not deserve to have the government come along and "help" them.

Help should be reserved for those who "ACTUALLY NEED & DESERVE IT"

I know this makes me a radical.

Well, luckily for those on welfare around here, gas prices are coming down. Now they can afford to drive between Michigan, Illinois and Minnesota to collect all of their welfare checks.

rvsahs · October 10, 2008

I think a lot of people who thought this was a "Wall Street" problem are going to be surprised when it hits their street... effecting their jobs and their abilities to live their life the way they have become accustomed to. I think there will be a lot of crying and whining that "the goverment should've done something" and kept them tucked away in their self-involved, over-extended little bubbles...

I think it'll be the fault of the politicians and the banks and "those greedy so and so's on Wall Street that caused this mess." People won't take responsibility for themselves. They'll blame living beyond their means on everyone but themselves.. Heck, it wouldn't surprise me to see idiots suing companies "for making them want stuff." Shrinks will probably come up with some sort of "disease" for it, so no one has to take blame for themselves... "It's the disease's fault, not your's!"

BULL-HOOEY!

The PEOPLE ran up their credit cards. The PEOPLE didn't save money. The PEOPLE bought more house and car and iPods and new cellphones every 3 months and all sorts of other crap they didn't need, which over-extended themselves, and made themselves vulnerable to the least little shake or tremor in the economy.. their job status... health issues for themselves or a loved-one... and anything else that made "living paycheck to paycheck" the dangerous game of Russian Roulette so many people have played for so long... and got away with it... until now.

I hope this doesn't get as bad as it could get. But, I do hope some people learn how to manage themselves, their finances, and their families much much better than they've been doing it the last decade or two.

Ok - I'm going to shut up now, before I get on a roll and get 'warned' or something...

!! Rant on, Michael!

Zembonez · October 10, 2008

I think a lot of people who thought this was a "Wall Street" problem are going to be surprised when it hits their street... effecting their jobs and their abilities to live their life the way they have become accustomed to. I think there will be a lot of crying and whining that "the goverment should've done something" and kept them tucked away in their self-involved, over-extended little bubbles...

I think it'll be the fault of the politicians and the banks and "those greedy so and so's on Wall Street that caused this mess." People won't take responsibility for themselves. They'll blame living beyond their means on everyone but themselves.. Heck, it wouldn't surprise me to see idiots suing companies "for making them want stuff." Shrinks will probably come up with some sort of "disease" for it, so no one has to take blame for themselves... "It's the disease's fault, not your's!"

BULL-HOOEY!

The PEOPLE ran up their credit cards. The PEOPLE didn't save money. The PEOPLE bought more house and car and iPods and new cellphones every 3 months and all sorts of other crap they didn't need, which over-extended themselves, and made themselves vulnerable to the least little shake or tremor in the economy.. their job status... health issues for themselves or a loved-one... and anything else that made "living paycheck to paycheck" the dangerous game of Russian Roulette so many people have played for so long... and got away with it... until now.

I hope this doesn't get as bad as it could get. But, I do hope some people learn how to manage themselves, their finances, and their families much much better than they've been doing it the last decade or two.

Ok - I'm going to shut up now, before I get on a roll and get 'warned' or something...

!! Rant on, Michael!

I agree. What you are saying rings very true.

Darkanion · October 10, 2008

!! Rant on, Michael!

I agree. What you are saying rings very true.

With all the frivolous lawsuits in the world these days...

McDonald's getting sued for selling HOT COFFEE?! Oh My GOD?! Who would've expected the coffee to be ... HOT?!

Ozzy gets drug into court for that kid committing suicide... (yes, I know that was yeeeeeears ago, but I think that was at the beginning of a lot of this "I won't take responsibility for me b/s")

Fast food joints being sued for kids getting fat, because their parents give them money and LET them eat eat there 2, 3, 4 times a day... every day.

People getting sued BY THE BURGLAR if they SHOOT and don't KILL them, after they break into your house or place of business!?

Video game makers being sued for kids being violent.. Nevermind what they see on the streets every day, on the news every evening, and on TV every night... Nevermind the fact that parents take the attitude that "I can't do anything about my chiiiild" and just let 'em do whatever they want to do. RAISE your kids... and MAKE SURE THEY KNOW who the ADULT is... who the PARENT is... and who the CHILD is.

The list goes on and on...

If it's "the game's" fault or "the song's" fault.. or some made up disease, because some idiot claims he's "addicted to cable" and that's why he's a lard bucket and has health problems ...

How in the world can we ever expect these people to grow up, be adults, take responsibility for themselves, and - in my mind - be contributing members of society?

Has society already slipped that far that we have to "take care of" these idiots?!

If it has... Maybe it's time to explore alternative meanings for "taking care of" someone..............

tobias · October 10, 2008

What if it was Molly here who needed "taken care of", would ya then?

Zembonez · October 10, 2008

What if it was Molly here who needed "taken care of", would ya then?

She'd starve around here.

I'm a brown girl fan myself... Mrs Clown is a fine Mexican girl. Nothing trumps the passion and loving nature of a Mexican girl in my book. We've been US for many years and it's as good now as it ever was. I don't now many people that can say that.

Now if Jessica Alba needed help.............

Darkanion · October 10, 2008

What if it was Molly here who needed "taken care of", would ya then?

"Molly" here is a fantasy and can be made into whatever I want 'er to be... So, YEAH... I'd "take care of" her.. but not the way I was indicating at the end of that last post!

Nice try, though!