I was talking to my friend last night, who is currently out of work and looking for a job, and she was telling me about some of her job interviews. Some of the people out hiring and looking for a job are primarily looking for people who are reliable and show up on time.
What a difference a shift in the economy will do. I remember reading an article about a year or two ago... it was talking about how business owners are finding themselves having to bend over backwards to cater to the new 20somethings entering the job market. What really stood out to me was what one girl said (I'm paraphrasing):
"If I don't get what I want from this job, I'll just leave and go find another job."
Wonder how that's working for you? The official unemployment figure right now is 4.8% right now. Maybe it's just bad here in Arizona, but I can say anecdotally that things are not as bright as that might seem. My husband just got a job after being unemployed for almost 3 months, a friend of mine is looking for work after about a month of unemployment, and another friend of mine is working, but only 2 days a week, when she would like a full time job.
All 3 of these examples probably wouldn't show up on the unemployment figures. Both my husband and my friend had accepted lower-paying temporary assignments to keep some food on the table while looking for a permanent, better-paying job. My friend working 2 days a week won't show up on the unemployment statistics either, because she is just underemployed, not unemployed.
Who are the people that are going to get (and keep) the jobs when there are fewer of them to go around? The people that are going to work hard and be dependable, or the people who want their employers to bend over backwards to keep them happy?
Perhaps our sluggish economy will serve as a wake-up call to people who want to have it their way on the job. Like... say... the people who can't do math and can't figure out how to make change while working at McDonald's, so you either have to have correct change or pay with a credit/debit card (that's a recent story I heard). Or people who want special hours, or special benefits? While all that stuff might be nice if the boss can swing it, sometimes it's impractical.
If we as a country do not develop a work ethic, how can we expect to achieve the greatness that our country used to have when we did know how to work? I'm not saying that there aren't plenty of people that do know how to work, but if the article that I was reading a year or two ago is any indication, there is a large segment of the population that needs to learn. Perhaps the increased competition for jobs with people that do know how to work will be their wake up call.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Wednesday, March 12, 2008
One Paycheck Away...
Everyone, it seems, has heard the statistic... many families are just one paycheck away from being homeless. I don't know what the percentage is, but it's a lot.
Of course, if truly desperate, I think that a lot of these families could move in with relatives. My sister-in-law and brother-in-laws did a couple of years ago, and while it wasn't fun, they survived. We could always move in with my family, or my husband's family (maybe, if they weren't too traumatized by taking in my in-laws ;)).
The other thing that this statistic doesn't keep into account is God. If you've been following my blog for a while, you might realize that it's been nearly 3 months now since my husband lost his job. We didn't have savings built up.
But we've managed to survive. In fact, the week after dh lost his job, we took off on an impromtu vacation for three weeks to stay with my family over Christmas in another state. Some people thought we were crazy for doing that, but we used dh's final paycheck to pay for that trip, and we didn't have to buy food for 3 weeks. My grandparents are getting up there, in their 70s and 80s, and had never seen their only great-grandson. We figured that it was a sign to go.
We knew at the time that dh was getting school money a few days after we came back (he's a student at Arizona State University), so we knew we wouldn't be coming back destitute. Also, very few companies are hiring in the last couple of weeks of the year. So for the past 3 months, we've been surviving by visiting family, school money, and then we got a nice large income tax return. Dh has been accepting temporary employment when he can get it, and when he's not working, unemployment has been chipping in with their generous package of $240 a week.
God has been coming through in amazing ways. And while I'm sure that he could come through some more if needed, he chose to finally give my husband a job. Dh actually turned down a temporary job offer last week... he had interviewed for one job that was to pay $35K a year, then the company called back and said that job went to someone else, but they had a temporary one for $29K a year. We knew that he had this second interview with Enterprise Rental Car coming, which will pay a lot more, and we took a gamble that he would get that job instead. Fortunately, the gamble paid off, because he caught the fat bird in the bush after letting the skinny, sickly one go.
He gets to start on Monday, and he worked it out with the temporary job that he's currently working at that he will continue working with them for the rest of the week. So things are looking good. They're hiring him on a temporary basis for now with the plans to take him full time, mainly because Enterprise has to pay a headhunter fee once they do hire him full time and doing so costs a lot of money, so they want to make sure that dh is dependable. He is, so that's not a problem.
So we survived not one paycheck missing, but 3 months of missing paychecks. When you need it, God sometimes comes through with money from unexpected sources. Not that I like tempting fate like that... we're big fans of Dave Ramsey and believe in having an emergency fund. I already have about $30 saved away in our emergency fund, but we'll start building it up to $5000... while a normal "baby" emergency fund is supposed to be about $1000, in this economy we want it a little higher just in case of another job loss. My friend has also lost 3 jobs recently, her job losses have been in the last 2 years.
Of course, if truly desperate, I think that a lot of these families could move in with relatives. My sister-in-law and brother-in-laws did a couple of years ago, and while it wasn't fun, they survived. We could always move in with my family, or my husband's family (maybe, if they weren't too traumatized by taking in my in-laws ;)).
The other thing that this statistic doesn't keep into account is God. If you've been following my blog for a while, you might realize that it's been nearly 3 months now since my husband lost his job. We didn't have savings built up.
But we've managed to survive. In fact, the week after dh lost his job, we took off on an impromtu vacation for three weeks to stay with my family over Christmas in another state. Some people thought we were crazy for doing that, but we used dh's final paycheck to pay for that trip, and we didn't have to buy food for 3 weeks. My grandparents are getting up there, in their 70s and 80s, and had never seen their only great-grandson. We figured that it was a sign to go.
We knew at the time that dh was getting school money a few days after we came back (he's a student at Arizona State University), so we knew we wouldn't be coming back destitute. Also, very few companies are hiring in the last couple of weeks of the year. So for the past 3 months, we've been surviving by visiting family, school money, and then we got a nice large income tax return. Dh has been accepting temporary employment when he can get it, and when he's not working, unemployment has been chipping in with their generous package of $240 a week.
God has been coming through in amazing ways. And while I'm sure that he could come through some more if needed, he chose to finally give my husband a job. Dh actually turned down a temporary job offer last week... he had interviewed for one job that was to pay $35K a year, then the company called back and said that job went to someone else, but they had a temporary one for $29K a year. We knew that he had this second interview with Enterprise Rental Car coming, which will pay a lot more, and we took a gamble that he would get that job instead. Fortunately, the gamble paid off, because he caught the fat bird in the bush after letting the skinny, sickly one go.
He gets to start on Monday, and he worked it out with the temporary job that he's currently working at that he will continue working with them for the rest of the week. So things are looking good. They're hiring him on a temporary basis for now with the plans to take him full time, mainly because Enterprise has to pay a headhunter fee once they do hire him full time and doing so costs a lot of money, so they want to make sure that dh is dependable. He is, so that's not a problem.
So we survived not one paycheck missing, but 3 months of missing paychecks. When you need it, God sometimes comes through with money from unexpected sources. Not that I like tempting fate like that... we're big fans of Dave Ramsey and believe in having an emergency fund. I already have about $30 saved away in our emergency fund, but we'll start building it up to $5000... while a normal "baby" emergency fund is supposed to be about $1000, in this economy we want it a little higher just in case of another job loss. My friend has also lost 3 jobs recently, her job losses have been in the last 2 years.
Saturday, February 23, 2008
Local Governments Running Out Of Money...
Arizona has a law where they are supposed to keep their budget balanced. Right now, there is a $1.3 billion budget deficit, which has prompted governor Janet Napolitano to initiate a state hiring freeze.
This is not really a great surprise to me. My husband was hired by the state early last year, and before he got past his probationary period where they can't fire you without an act of legislation, they started letting go of people left and right in the office he was working in (a lot of the employees were hired under a rule that allowed them to be let go). Every day there was somebody else going, and my husband started looking for a job before they gave him his two weeks notice. To hear that they are not going to hire any new people (except in some critical areas like health care) is not a surprise.
The amount of children enrolling in Arizona schools is less than expected however, which people believe is due to the new law that punishes businesses for knowingly hiring illegal aliens, so that should help, as there is not as great a need for teachers, and they may even have to cut staff.
Another local government running out of money is the city of Vallejo, California. Reuters is reporting that they are considering filing for bankruptcy. I suppose I can see how a Southern California town could be headed for financial problems right about now. Housing prices have been through the roof for years, and I'm sure that Vallejo received a lot of money in property taxes especially, because it is a very nice town with some very nice houses (I used to live in nearby San Diego). Vallejo could have easily gotten used to receiving a certain amount of revenues in property taxes, and as property values fall, revenues fall. Also, with people spending less, there would be less money in sales taxes coming in.
I wonder how many other local governments are having trouble balancing their budgets right about now? Vallejo is not the only city in the country that has seen astronomical housing values plummet. Just recently, interest rates for bonds have gone up, which will cause more strain to some of these locations.
When your local government runs low on money, the effect can trickle down to everybody in the area. Will they have to make pay cuts? Raise taxes? Delay replacing items that wear out like fire trucks? Cut back the library hours?
I don't live in Vallejo, and as far as I know, Arizona is not making any other cutbacks that might affect me, but this could be a sign of things to come. I hope not. Hopefully the city, state, and county governments in this country will take a close look at their budget and make the proactive cutbacks needed so they can balance their budget.
After Katrina, many people were left with the feeling that you can't depend on the government for help at all times, and you need to try to be prepared. That is still a good goal, especially when the resources of government are tapped.
This is not really a great surprise to me. My husband was hired by the state early last year, and before he got past his probationary period where they can't fire you without an act of legislation, they started letting go of people left and right in the office he was working in (a lot of the employees were hired under a rule that allowed them to be let go). Every day there was somebody else going, and my husband started looking for a job before they gave him his two weeks notice. To hear that they are not going to hire any new people (except in some critical areas like health care) is not a surprise.
The amount of children enrolling in Arizona schools is less than expected however, which people believe is due to the new law that punishes businesses for knowingly hiring illegal aliens, so that should help, as there is not as great a need for teachers, and they may even have to cut staff.
Another local government running out of money is the city of Vallejo, California. Reuters is reporting that they are considering filing for bankruptcy. I suppose I can see how a Southern California town could be headed for financial problems right about now. Housing prices have been through the roof for years, and I'm sure that Vallejo received a lot of money in property taxes especially, because it is a very nice town with some very nice houses (I used to live in nearby San Diego). Vallejo could have easily gotten used to receiving a certain amount of revenues in property taxes, and as property values fall, revenues fall. Also, with people spending less, there would be less money in sales taxes coming in.
I wonder how many other local governments are having trouble balancing their budgets right about now? Vallejo is not the only city in the country that has seen astronomical housing values plummet. Just recently, interest rates for bonds have gone up, which will cause more strain to some of these locations.
When your local government runs low on money, the effect can trickle down to everybody in the area. Will they have to make pay cuts? Raise taxes? Delay replacing items that wear out like fire trucks? Cut back the library hours?
I don't live in Vallejo, and as far as I know, Arizona is not making any other cutbacks that might affect me, but this could be a sign of things to come. I hope not. Hopefully the city, state, and county governments in this country will take a close look at their budget and make the proactive cutbacks needed so they can balance their budget.
After Katrina, many people were left with the feeling that you can't depend on the government for help at all times, and you need to try to be prepared. That is still a good goal, especially when the resources of government are tapped.
Wednesday, February 20, 2008
I'm Starting To See Why They Killed Themselves During The Great Depression...
Not that I'm planning on doing that or anything... but I can understand their frustration.
Some days you can wake up with no money in your pocket and be thankful that there's nobody in the hospital, you have food in the pantry, freezer, and refrigerator, and that you're alive. Other days you wake up with total frustration over the emergency room bills from last year that you have no clue how you are ever going to come up with even money to make payments on them, the mortgage that's 20 days late and you can't pay until the federal income tax return comes back, the unemployment people that say that there's a problem with your application and are always busy no matter what time of day you call them, three job losses in the last year, two months of unemployment and no prospects in site, and five years of barely being able to afford to pay the bills because even when dh has a job, it's usually not enough to pay for luxuries like new clothes or trips to McDonald's.
The last 4 jobs my husband has had (if you don't count the emergency job at GoDaddy last year because we needed money and dh couldn't find a job and it was better than nothing) was working as an executive assistant. As in, assisting CEOs of small companies, department heads, etc. When he was employed in those jobs, money was decent. Not great, but we could pay our bills and have a little left over. We were even planning on going to Disneyland and putting dd into gymnastics classes. His first executive assistant jobs that he took were 12 years ago.
Before that, he had jobs as an Administrative Assistant. That's the step down from the Executive Assistant. It's a perfectly great job if you're 22. It's not a great job if you've been working as an Executive Assistant for 12 years.
My husband just said earlier today that he's going to start applying for Administrative Assistant Job. Might as well start applying for jobs where you wear a hat and say "Do you want fries with that?" as well. It's a good thing that they raised the minimum wage.
It's just frustrating. Last year, every time dh would lose a job, it would only take about 2 or 3 weeks to get another one. This time, it's already been 2 months, and I'm starting to feel that we'll be lucky if he has a job again in another 3 months. And Ben Bernanke says that there's no recession. Well, maybe the economy doesn't meet the technical definition of a recession, where there is a decline in the Gross Domestic Product for two successive quarters (6 months), but I'm not seeing any signs of things going great around here.
I was talking to my mom yesterday, and she says that a friend of hers has a daughter that works for Macy's, and they let go of an entire marketing department there. So evidently things aren't going well in Seattle either. I talk to people on the internet all the time that can hardly make ends meet. Yes, things in the economy are just going along swimmingly...
I normally try to be positive but sometimes it's hard to be positive all the time. Yes, God has always swept in at the very last moment and provided us with the things that we need. He helped my mother-in-law find a brand new crib for just $15 at Wal-Mart, that doesn't happen every day. But sometimes you just wish for some semblance of... stability. A job... anything that will give you the impression that the next month's mortgage will be taken care of. Nowadays I suppose not even a job is going to give stability, but it's better than no job.
I guess this must be something like how the Israelites felt while they were wandering around in the wilderness. Yes, God provided them with food every day, but there was absolutely no stability there. What if I wake up one morning and God doesn't put the manna there? Similarly, I've been thinking What if dh can't find a job and we can't make the mortgage payment? The Israelites did not see a light at the end of the tunnel, and right now, neither do I.
But then again, David spent several years living in caves and forests while being chased by King Saul. Eventually Saul was killed and he became king and things weren't so bad (until he sinned with Bathsheba, then everything went downhill from there). The Israelites wandered around in the wilderness for 40 years, but after that they had the promised land and things were good. Even my parents... my dad used to work for my grandpa, but he barely paid enough to live. I remember we were always broke. One day my dad got mad at grandpa and quit... but when he got a job after that, it was a really good job and now they're doing pretty well.
I'm just waiting for the second, happy half of the story. Even the people that lived through the Great Depression, and then World War II, did pretty well in the 1950s. If they lived through it without jumping off a skyscraper in frustration.
Some days you can wake up with no money in your pocket and be thankful that there's nobody in the hospital, you have food in the pantry, freezer, and refrigerator, and that you're alive. Other days you wake up with total frustration over the emergency room bills from last year that you have no clue how you are ever going to come up with even money to make payments on them, the mortgage that's 20 days late and you can't pay until the federal income tax return comes back, the unemployment people that say that there's a problem with your application and are always busy no matter what time of day you call them, three job losses in the last year, two months of unemployment and no prospects in site, and five years of barely being able to afford to pay the bills because even when dh has a job, it's usually not enough to pay for luxuries like new clothes or trips to McDonald's.
The last 4 jobs my husband has had (if you don't count the emergency job at GoDaddy last year because we needed money and dh couldn't find a job and it was better than nothing) was working as an executive assistant. As in, assisting CEOs of small companies, department heads, etc. When he was employed in those jobs, money was decent. Not great, but we could pay our bills and have a little left over. We were even planning on going to Disneyland and putting dd into gymnastics classes. His first executive assistant jobs that he took were 12 years ago.
Before that, he had jobs as an Administrative Assistant. That's the step down from the Executive Assistant. It's a perfectly great job if you're 22. It's not a great job if you've been working as an Executive Assistant for 12 years.
My husband just said earlier today that he's going to start applying for Administrative Assistant Job. Might as well start applying for jobs where you wear a hat and say "Do you want fries with that?" as well. It's a good thing that they raised the minimum wage.
It's just frustrating. Last year, every time dh would lose a job, it would only take about 2 or 3 weeks to get another one. This time, it's already been 2 months, and I'm starting to feel that we'll be lucky if he has a job again in another 3 months. And Ben Bernanke says that there's no recession. Well, maybe the economy doesn't meet the technical definition of a recession, where there is a decline in the Gross Domestic Product for two successive quarters (6 months), but I'm not seeing any signs of things going great around here.
I was talking to my mom yesterday, and she says that a friend of hers has a daughter that works for Macy's, and they let go of an entire marketing department there. So evidently things aren't going well in Seattle either. I talk to people on the internet all the time that can hardly make ends meet. Yes, things in the economy are just going along swimmingly...
I normally try to be positive but sometimes it's hard to be positive all the time. Yes, God has always swept in at the very last moment and provided us with the things that we need. He helped my mother-in-law find a brand new crib for just $15 at Wal-Mart, that doesn't happen every day. But sometimes you just wish for some semblance of... stability. A job... anything that will give you the impression that the next month's mortgage will be taken care of. Nowadays I suppose not even a job is going to give stability, but it's better than no job.
I guess this must be something like how the Israelites felt while they were wandering around in the wilderness. Yes, God provided them with food every day, but there was absolutely no stability there. What if I wake up one morning and God doesn't put the manna there? Similarly, I've been thinking What if dh can't find a job and we can't make the mortgage payment? The Israelites did not see a light at the end of the tunnel, and right now, neither do I.
But then again, David spent several years living in caves and forests while being chased by King Saul. Eventually Saul was killed and he became king and things weren't so bad (until he sinned with Bathsheba, then everything went downhill from there). The Israelites wandered around in the wilderness for 40 years, but after that they had the promised land and things were good. Even my parents... my dad used to work for my grandpa, but he barely paid enough to live. I remember we were always broke. One day my dad got mad at grandpa and quit... but when he got a job after that, it was a really good job and now they're doing pretty well.
I'm just waiting for the second, happy half of the story. Even the people that lived through the Great Depression, and then World War II, did pretty well in the 1950s. If they lived through it without jumping off a skyscraper in frustration.
Tuesday, February 19, 2008
Michigan Suspends Student Loans -- Listen To Dave Ramsey
If you are a student in college or have a family member in college right now... you may end up being affected by the nation's current credit crunch. If you live in Michigan, you may be affected next semester.
As reported on Mlive.com, Michigan's MI-LOAN program, which was often used to close the gap between loans made by the federal government and the actual cost of education, has been suspended for the time being, because the program was unable to borrow enough money needed to in turn, lend the money to it's borrowers. The cost of credit is going up... and it's quite likely that in the future, more than just student loans will be affected.
Thinking about buying a new car? On credit? While for years many people have just been able to walk to the dealership and walk away with a brand-new car for no money down, in a credit crunch, like the one that's just beginning, that might be a thing of the past... even if you have stellar credit. It will be harder to get a credit card, harder for businesses to get loans... and it's already harder for home buyers to get loans.
A tightening credit market is not entirely a bad thing. While it is a bad thing that some students might not be able to go to college without the MI-LOAN program, our country as a whole relies too much on debt. I'm a big fan of Dave Ramsey. He lives in a world where "debt is dumb, cash is king, and the paid off home mortgage replaces the BMW as the status symbol of choice". I like that. If only my husband could get a job so we could pay off our student, car, and home loans, LOL.
Living in the world of credit sacrifices tomorrow in order to live it up today. We see that in both personal finance and government finance (think national debt/trade deficit). There's absolutely no reason to finance a vacation. While it might be important to finance a trip to great-grandma Smith while she lies on her deathbed, nobody needs to borrow money to go to Disneyland. Or to buy a Hummer. But people do it every day. There are people out there paying more in car payments than we do for our home mortgage. Hope you like that car, because you may end up living in it if things go south.
The days of credit cards loaning wads of cash to everyone and their dog (and dead grandma) are probably drying up. Perhaps this means that people will start learning to live within their means? One could only hope. It's not easy to adjust to a lower income level, or an effective lower income level because there is no credit to go out and borrow, but it can be done. We took a 66% pay cut when I left the Navy and my husband went to work. I had to learn to use coupons effectively and hunt out bargains. Now it's like a game to me... see how much food you can haul home from the grocery store for the least amount of money. Today I came home with 20 pounds of ground beef, 9 Tombstone pizzas, and 1 box of Velveeta Shells and Cheese for $36. I was in bargain lover's heaven.
America as a nation tends to be a resilient nation (or at least it used to be). We will live through this credit crunch and any residual effects, and hopefully come out of it as a people much wiser and a little more thrifty.
As reported on Mlive.com, Michigan's MI-LOAN program, which was often used to close the gap between loans made by the federal government and the actual cost of education, has been suspended for the time being, because the program was unable to borrow enough money needed to in turn, lend the money to it's borrowers. The cost of credit is going up... and it's quite likely that in the future, more than just student loans will be affected.
Thinking about buying a new car? On credit? While for years many people have just been able to walk to the dealership and walk away with a brand-new car for no money down, in a credit crunch, like the one that's just beginning, that might be a thing of the past... even if you have stellar credit. It will be harder to get a credit card, harder for businesses to get loans... and it's already harder for home buyers to get loans.
A tightening credit market is not entirely a bad thing. While it is a bad thing that some students might not be able to go to college without the MI-LOAN program, our country as a whole relies too much on debt. I'm a big fan of Dave Ramsey. He lives in a world where "debt is dumb, cash is king, and the paid off home mortgage replaces the BMW as the status symbol of choice". I like that. If only my husband could get a job so we could pay off our student, car, and home loans, LOL.
Living in the world of credit sacrifices tomorrow in order to live it up today. We see that in both personal finance and government finance (think national debt/trade deficit). There's absolutely no reason to finance a vacation. While it might be important to finance a trip to great-grandma Smith while she lies on her deathbed, nobody needs to borrow money to go to Disneyland. Or to buy a Hummer. But people do it every day. There are people out there paying more in car payments than we do for our home mortgage. Hope you like that car, because you may end up living in it if things go south.
The days of credit cards loaning wads of cash to everyone and their dog (and dead grandma) are probably drying up. Perhaps this means that people will start learning to live within their means? One could only hope. It's not easy to adjust to a lower income level, or an effective lower income level because there is no credit to go out and borrow, but it can be done. We took a 66% pay cut when I left the Navy and my husband went to work. I had to learn to use coupons effectively and hunt out bargains. Now it's like a game to me... see how much food you can haul home from the grocery store for the least amount of money. Today I came home with 20 pounds of ground beef, 9 Tombstone pizzas, and 1 box of Velveeta Shells and Cheese for $36. I was in bargain lover's heaven.
America as a nation tends to be a resilient nation (or at least it used to be). We will live through this credit crunch and any residual effects, and hopefully come out of it as a people much wiser and a little more thrifty.
Monday, February 18, 2008
Squatters Flocking to Foreclosed Homes
Last month I wrote about how some banks were trying to sell their foreclosed homes at auction, but they weren't getting the prices that they wanted for them, so they'd just let them sit. In a declining housing market, I thought that was a bonehead move (they're not going to get any more valuable, but today on Excite.com there was an article about squatters living in foreclosed homes. Yet another reason that the banks should be selling their foreclosure inventory rather than sitting on them.
Not all of these people occupying foreclosed homes are nice families who just got down on their luck one day and lost their places to live. Some of these vacant homes are being taken over by prostitutes and drug dealers. Just what your average suburban family wants living next door, right? One person interviewed for the article said that she was living in abandoned homes because she kept getting kicked out of shelters for violating the rules of the shelter (i.e. no drugs).
I don't have a problem with the homeless in general. I've met some very nice people who were previously homeless. My brother was once friends with some nice boys that were homeless. The church that I used to go to had homeless dinners.
However nice the homeless people are that are occupying these houses, it can't exactly be a good thing for the value of the home. Is having a crack-house operating out of a home going to make you want to jump for joy and bid up the price of a house at auction? I don't think so. Even if you get a nice person squatting in the house, there is the potential for damage to the house, as people try to keep warm by lighting fires, or have light by lighting candles. Homeless people also don't have as much access to things like curbside trash pickup. While I'm sure many clean up after themselves and don't make a mess, the likelihood is that many squatters don't pick up the trash before they move on to another home.
The sad thing is, there are more foreclosed homes in some areas than there are homeless people. In Cuyahoga County, Ohio, there is an estimated 4,000 homeless people, yet 15,000 foreclosed homes remain vacant.
So it leaves me scratching my head wondering why businesses won't sell these homes at what the market will bear for them. They're probably just being greedy, don't really want to cut their losses, but if it's greed, it's not helping them. Houses do not increase in value when they are occupied by homeless people, whether they are nice, or whether they are operating a crack house out of it. Neighborhoods do not increase in value when someone is running a prostitution ring out of a nearby abandoned house. Homes do not increase in value during a declining market. It's common sense.
Not all of these people occupying foreclosed homes are nice families who just got down on their luck one day and lost their places to live. Some of these vacant homes are being taken over by prostitutes and drug dealers. Just what your average suburban family wants living next door, right? One person interviewed for the article said that she was living in abandoned homes because she kept getting kicked out of shelters for violating the rules of the shelter (i.e. no drugs).
I don't have a problem with the homeless in general. I've met some very nice people who were previously homeless. My brother was once friends with some nice boys that were homeless. The church that I used to go to had homeless dinners.
However nice the homeless people are that are occupying these houses, it can't exactly be a good thing for the value of the home. Is having a crack-house operating out of a home going to make you want to jump for joy and bid up the price of a house at auction? I don't think so. Even if you get a nice person squatting in the house, there is the potential for damage to the house, as people try to keep warm by lighting fires, or have light by lighting candles. Homeless people also don't have as much access to things like curbside trash pickup. While I'm sure many clean up after themselves and don't make a mess, the likelihood is that many squatters don't pick up the trash before they move on to another home.
The sad thing is, there are more foreclosed homes in some areas than there are homeless people. In Cuyahoga County, Ohio, there is an estimated 4,000 homeless people, yet 15,000 foreclosed homes remain vacant.
So it leaves me scratching my head wondering why businesses won't sell these homes at what the market will bear for them. They're probably just being greedy, don't really want to cut their losses, but if it's greed, it's not helping them. Houses do not increase in value when they are occupied by homeless people, whether they are nice, or whether they are operating a crack house out of it. Neighborhoods do not increase in value when someone is running a prostitution ring out of a nearby abandoned house. Homes do not increase in value during a declining market. It's common sense.
Monday, January 28, 2008
The Housing Market of Cards
The news of the day is that new home sales showed their worst performance in 16 years in 2007. This is only in addition to all the mortgage defaults and tumbling prices for homes going on.
60 Minutes did a report on mortgages last night, focusing on Stockton, California, where a lot of the skyrocketing housing prices started. They had a map showing houses that were starting the foreclosure process, houses that had gone into foreclosure, and houses that went up for auction but did not sell. The map was full of blue and red dots.
So it's evident that a lot of people are going through hard times. I've talked to so many people from around the country lately who have said that they are having trouble making ends meet, they need to save on groceries, etc. A lot of them are homeschoolers so they generally try to get by on one income or have a small part-time income from home, but one person's story really caught my eye - her family was a two-income family, and her husband was considering looking for a second job because they still were having trouble... they were already behind on their mortgage payments and were having trouble paying their electric bill and the like. Made me feel fortunate.
A lot of factors have contributed to this. People were getting adjustable rate mortgages, figuring that they'd refinance later when the rates went up (but the party stopped before they had the chance). The costs of the most basic things you need to survive, like food, gas to get to work, and energy to heat your home, have continued to go up, while wages have pretty much stayed the same. Skyrocketing property values have added to the problem by increasing property taxes. I know that our property taxes have gone up $200 a month in the 2 years that we have lived here, and our house is only worth $150,000.
There is one thing that disturbs me in all this, and one thing that I think is just plain ridiculous.
The disturbing thing to me is the people that can afford to pay for their homes, yet they are walking away from their obligations because their home is worth less than their mortgage. I've signed one of those mortgages (and the billion pieces of paper that go along with it) and I didn't see anywhere in there that you can just decide to stop paying if your home goes down in value, rather than up like you expected it to. Sometimes that happens, that's the risk that you take when you buy a house. If you think your house is overvalued at the price they want for it... don't buy it. It's a little like the stock market... if they are selling shares of a stock at more than they are worth, it is foolish to buy.
A lot of people lost their houses during the Great Depression, but it was not their choice. They saw home prices fall too, but their mortgages were also remaining the same, just as they are today. Unfortunately, a lot of people were losing their jobs and were given pay cuts and/or a reduction in working hours, so many couldn't continue to pay for their mortgage. People like the couple on 60 Minutes, who decided to stop paying for their house because it was worth less than their mortgage, probably existed, but there was a lot more shame to not paying your debts back then, so most didn't default of their own free will.
The other thing that is bothering me is the number of houses that the banks can't sell at auction, and therefore are just sitting there. ??? What are the banks waiting for, for housing prices to go up again? It makes just about as much sense as spraying a field of crops with poison so that nobody will eat it, when there are starving people out there. Perhaps they should consider auctioning them at whatever market value will pay for them, rather than holding on to them in the hopes that they will be worth more later. 60 Minutes showed some people being given a tour around foreclosed homes... one of the tour guides said something like "the price has been recently reduced, now it's only" and then he gave a price that was slightly over $300,000. That's why they have so many homes up for auction that won't sell, if they're still expecting people to pay that.
Of course the one downside of selling the houses, no matter what the price, is that the price that people are willing to pay might turn out to be a lot less than what the houses around it are supposedly "worth," which will just cause their property values to go down, which will make more people voluntarily give up their homes, which will cause property values to go down perhaps some more. Which was a cycle that occurred during the 1930s, when one house sold for a ridiculously low price that was below the mortgages on the other houses, the other houses were automatically worth less.
Some of the biggest losers in this whole mess are those people that decided to invest in REITs (Real Estate Investment Trusts). Anybody remember a while back where you'd see these advertisements about investing in real estate, but you didn't have to even buy a house? They saw quite a loss in 2007. If you had them, hopefully you got out when things were still good.
We're probably in for more rocky days to come. But it's probably needed to balance out the insanity that has been going on for so long. Not that balancing is fun.
60 Minutes did a report on mortgages last night, focusing on Stockton, California, where a lot of the skyrocketing housing prices started. They had a map showing houses that were starting the foreclosure process, houses that had gone into foreclosure, and houses that went up for auction but did not sell. The map was full of blue and red dots.
So it's evident that a lot of people are going through hard times. I've talked to so many people from around the country lately who have said that they are having trouble making ends meet, they need to save on groceries, etc. A lot of them are homeschoolers so they generally try to get by on one income or have a small part-time income from home, but one person's story really caught my eye - her family was a two-income family, and her husband was considering looking for a second job because they still were having trouble... they were already behind on their mortgage payments and were having trouble paying their electric bill and the like. Made me feel fortunate.
A lot of factors have contributed to this. People were getting adjustable rate mortgages, figuring that they'd refinance later when the rates went up (but the party stopped before they had the chance). The costs of the most basic things you need to survive, like food, gas to get to work, and energy to heat your home, have continued to go up, while wages have pretty much stayed the same. Skyrocketing property values have added to the problem by increasing property taxes. I know that our property taxes have gone up $200 a month in the 2 years that we have lived here, and our house is only worth $150,000.
There is one thing that disturbs me in all this, and one thing that I think is just plain ridiculous.
The disturbing thing to me is the people that can afford to pay for their homes, yet they are walking away from their obligations because their home is worth less than their mortgage. I've signed one of those mortgages (and the billion pieces of paper that go along with it) and I didn't see anywhere in there that you can just decide to stop paying if your home goes down in value, rather than up like you expected it to. Sometimes that happens, that's the risk that you take when you buy a house. If you think your house is overvalued at the price they want for it... don't buy it. It's a little like the stock market... if they are selling shares of a stock at more than they are worth, it is foolish to buy.
A lot of people lost their houses during the Great Depression, but it was not their choice. They saw home prices fall too, but their mortgages were also remaining the same, just as they are today. Unfortunately, a lot of people were losing their jobs and were given pay cuts and/or a reduction in working hours, so many couldn't continue to pay for their mortgage. People like the couple on 60 Minutes, who decided to stop paying for their house because it was worth less than their mortgage, probably existed, but there was a lot more shame to not paying your debts back then, so most didn't default of their own free will.
The other thing that is bothering me is the number of houses that the banks can't sell at auction, and therefore are just sitting there. ??? What are the banks waiting for, for housing prices to go up again? It makes just about as much sense as spraying a field of crops with poison so that nobody will eat it, when there are starving people out there. Perhaps they should consider auctioning them at whatever market value will pay for them, rather than holding on to them in the hopes that they will be worth more later. 60 Minutes showed some people being given a tour around foreclosed homes... one of the tour guides said something like "the price has been recently reduced, now it's only" and then he gave a price that was slightly over $300,000. That's why they have so many homes up for auction that won't sell, if they're still expecting people to pay that.
Of course the one downside of selling the houses, no matter what the price, is that the price that people are willing to pay might turn out to be a lot less than what the houses around it are supposedly "worth," which will just cause their property values to go down, which will make more people voluntarily give up their homes, which will cause property values to go down perhaps some more. Which was a cycle that occurred during the 1930s, when one house sold for a ridiculously low price that was below the mortgages on the other houses, the other houses were automatically worth less.
Some of the biggest losers in this whole mess are those people that decided to invest in REITs (Real Estate Investment Trusts). Anybody remember a while back where you'd see these advertisements about investing in real estate, but you didn't have to even buy a house? They saw quite a loss in 2007. If you had them, hopefully you got out when things were still good.
We're probably in for more rocky days to come. But it's probably needed to balance out the insanity that has been going on for so long. Not that balancing is fun.
Saturday, January 26, 2008
Hope In Troubled Times?
When I think about the major news stories of the day, it makes me want to pull my hair out. The world situation with Iran, North Korea, China, and Russia showing their muscle could be a potential headache waiting to happen. There's the whole situation with Mexico (maybe we should add them to the above list), where not only do we have their citizens demanding to use our schools and health care, armed military officials cross our border on occasion and we do nothing about it. Then there's the economy, which who knows whether it will get better or it will get worse, but the "econonomic stimulus" package is going to weaken our dollar even further... and right now even a lot of people with jobs are having trouble trying to make ends meet. Aaaack!
Oh yeah, and there's that little thing about the Constitution... sometimes it seems like it isn't worth the paper it's written on any more. Maybe it's more like a cool artifact rather than a document that our country actually lives by.
It seems like the Lord should be coming down at any minute to come and rapture us all out at any second. But can we really know the date and time? Gregory of Tours wrote in his The History of the Franks in the 500's that he thought that the signs of biblical prophecy were being fulfilled and they were in the last days even then.
But a history book that I'm currently reading is bringing me hope. I'm currently reading The Forgotten Man which discusses the Great Depression. It seems like they were going through a lot of what we are going through right now.
Well, not the Mexicans on the border thing, but they did have immigration. They had Hitler coming to power in Germany. Mussolini was doing his thing in Italy. Stalin was remaking Russia in the model of communism. Of course we all know what the result was of that... World War II.
Economically, things were dismal. People were losing their houses right and left because they couldn't afford to make house payments. Jobs were laying off workers. People were finding it hard to make ends meet. Much more so than is happening now. Times were rough for a lot of people.
This is the stuff that most people learn in their classes in school, if they go to a decent school and actually pay attention. But by reading this book, I'm seeing that there are a lot more similarities than I had ever known.
Government was taking away freedoms, and people were wondering if Roosevelt was going to be a dictator and the Constitution was turning out to be a meaningless historical document. Andrew Mellon, a very wealthy guy who now has all sorts of things named after him, was being taken to court by the government for not paying his taxes... even though at the time he had taken certain tax deductions, they were perfectly legal. The government was pushing power companies out of business with their Tennessee Valley Authority (TVA). The government even passed a law saying that customers who went to a butcher could not even choose the chicken that they ate for dinner that night. I've never gone to a butcher and told them to kill a live chicken... that's a little foreign to me... but not having the choice as to what product I purchased at the store seems quite un-American to me as well.
Things seemed pretty bleak at the time. And I'm sure things were rough. The people that lived through the depression went right from economic hardship to the hardship of a world war. But after all that... people seemed to do okay in the 1950s.
I don't have a magic crystal ball that can tell me if the economy is going to get worse or better, if any of the threatening countries will rear their ugly head and the world erupts into a full-blown World War III, and I can't tell you if Islam will try to impose Sharia law in places that were once thought of as Westernized or even Christian. But I do believe that we can learn from history... and what I think can be learned from this portion of history is that even when things seem to be at their worst, and all hope is gone... things can miraculously emerge better than ever.
Oh yeah, and there's that little thing about the Constitution... sometimes it seems like it isn't worth the paper it's written on any more. Maybe it's more like a cool artifact rather than a document that our country actually lives by.
It seems like the Lord should be coming down at any minute to come and rapture us all out at any second. But can we really know the date and time? Gregory of Tours wrote in his The History of the Franks in the 500's that he thought that the signs of biblical prophecy were being fulfilled and they were in the last days even then.
But a history book that I'm currently reading is bringing me hope. I'm currently reading The Forgotten Man which discusses the Great Depression. It seems like they were going through a lot of what we are going through right now.
Well, not the Mexicans on the border thing, but they did have immigration. They had Hitler coming to power in Germany. Mussolini was doing his thing in Italy. Stalin was remaking Russia in the model of communism. Of course we all know what the result was of that... World War II.
Economically, things were dismal. People were losing their houses right and left because they couldn't afford to make house payments. Jobs were laying off workers. People were finding it hard to make ends meet. Much more so than is happening now. Times were rough for a lot of people.
This is the stuff that most people learn in their classes in school, if they go to a decent school and actually pay attention. But by reading this book, I'm seeing that there are a lot more similarities than I had ever known.
Government was taking away freedoms, and people were wondering if Roosevelt was going to be a dictator and the Constitution was turning out to be a meaningless historical document. Andrew Mellon, a very wealthy guy who now has all sorts of things named after him, was being taken to court by the government for not paying his taxes... even though at the time he had taken certain tax deductions, they were perfectly legal. The government was pushing power companies out of business with their Tennessee Valley Authority (TVA). The government even passed a law saying that customers who went to a butcher could not even choose the chicken that they ate for dinner that night. I've never gone to a butcher and told them to kill a live chicken... that's a little foreign to me... but not having the choice as to what product I purchased at the store seems quite un-American to me as well.
Things seemed pretty bleak at the time. And I'm sure things were rough. The people that lived through the depression went right from economic hardship to the hardship of a world war. But after all that... people seemed to do okay in the 1950s.
I don't have a magic crystal ball that can tell me if the economy is going to get worse or better, if any of the threatening countries will rear their ugly head and the world erupts into a full-blown World War III, and I can't tell you if Islam will try to impose Sharia law in places that were once thought of as Westernized or even Christian. But I do believe that we can learn from history... and what I think can be learned from this portion of history is that even when things seem to be at their worst, and all hope is gone... things can miraculously emerge better than ever.
Monday, January 21, 2008
Stock Markets Worldwide Drop - What To Do?
My husband called me up to let me know that several stock markets worldwide have been dropping today. I guess that's not really a surprise. Our markets were closed for Martin Luther King day.
Is there anything that you can do in times of economic trouble? Especially if things continue to get worse?
1) Become a miser. My husband even suggested that he wanted to do this last week. We're going to spend as little as we can. I even ordered a Pizza Hut gift card with some of my Mypoints, because I like to take dd to Pizza Hut once a month to use her Book-It coupons, and even the $5 I end up spending for me and ds is too much for me with this new spirit of miserliness.
2) Save as much as possible. That may be difficult, but if you can find ways to cut back with newfound miserliness, you might be able to save a little. Every little bit helps. If you're getting a tax refund, save it or pay off bills with it. If President Bush gives you some money, save it or pay off bills. My dh is trying to save up at least $5000 in case he loses his job... which will be a little tough because his temp-to-hire assignment ended abruptly a few minutes ago, so once again, we have no income coming in to save. But once he does get a job, we're saving it.
3) Trust God. No matter how bad things get, God is always there in control. Nothing can happen, good or bad, without him knowing. Even hard times are usually temporary. Even the Great Depression ended... eventually. If you don't know God, now might be a good to get to know him. We all have done bad things, like lying, or stealing (even taking a pencil from work is wrong), or hating someone else (Jesus said that was murder in your heart). That keeps us from God. Jesus has paid the penalty for our wrongdoings by dying on the cross... if you trust him.
4) Make yourself indispensable as an employee. Make it so that you are so important, your job won't want to let you go. Learn new job related things.
Hopefully things will turn around... but if not, be prepared for a bumpy ride ahead.
Is there anything that you can do in times of economic trouble? Especially if things continue to get worse?
1) Become a miser. My husband even suggested that he wanted to do this last week. We're going to spend as little as we can. I even ordered a Pizza Hut gift card with some of my Mypoints, because I like to take dd to Pizza Hut once a month to use her Book-It coupons, and even the $5 I end up spending for me and ds is too much for me with this new spirit of miserliness.
2) Save as much as possible. That may be difficult, but if you can find ways to cut back with newfound miserliness, you might be able to save a little. Every little bit helps. If you're getting a tax refund, save it or pay off bills with it. If President Bush gives you some money, save it or pay off bills. My dh is trying to save up at least $5000 in case he loses his job... which will be a little tough because his temp-to-hire assignment ended abruptly a few minutes ago, so once again, we have no income coming in to save. But once he does get a job, we're saving it.
3) Trust God. No matter how bad things get, God is always there in control. Nothing can happen, good or bad, without him knowing. Even hard times are usually temporary. Even the Great Depression ended... eventually. If you don't know God, now might be a good to get to know him. We all have done bad things, like lying, or stealing (even taking a pencil from work is wrong), or hating someone else (Jesus said that was murder in your heart). That keeps us from God. Jesus has paid the penalty for our wrongdoings by dying on the cross... if you trust him.
4) Make yourself indispensable as an employee. Make it so that you are so important, your job won't want to let you go. Learn new job related things.
Hopefully things will turn around... but if not, be prepared for a bumpy ride ahead.
Saturday, January 19, 2008
Why Does Our Government Encourage Stupidity?
My Excite News today said that our lovely president wants to give everybody tax rebates. The hope is that we'll take the $800-$1600 that they want to give us and go hit the mall.
As much as I'd really like to have a wii and some new clothes, that's the last thing I'm going to be doing with my money right now.
My husband lost his job 3 times last year. Not because he was goofing off or anything, but he just happened to get hired into jobs that didn't have their contracts removed or had to make cutbacks. With all indications of America's economic bubble bursting at some point, we don't expect things to get better soon. If we get the money, we're saving it. Maybe we'll invest it in gold or some other precious metal.
A couple of days ago, my husband suggested to me something that I never would have imagined that he'd say "let's live like misers." He loves to spend. However, he wants to be prepared in case he loses his job. So our goal is to save up $5000 in case he loses his job again.
It seems as if America has lost all touch with common sense. If you get into debt or spend money that you don't have, eventually you're going to have to pay it back. Visiting my family over Christmas really showed me the effect of being smart with money, and living within one's means, or being stupid. The people that got into debt when I was younger sure had fun then, but they're not exactly that well off any more.
Dave Ramsey is a pretty smart guy when it comes to money. He has a lot of common sense. He has a few baby steps that he suggests that people use when they are trying to work their way to financial independence:
Step 1: save up a baby emergency fund
He suggests that you save up $1000 as a baby emergency fund, in case the car breaks down, the refrigerator stops working, or something unexpected like that comes up. $1000 isn't going to help a whole lot, however, if you lose your job. We're trying to save up $5000 right now... actually we're trying to save up $6000, $5000 in case of a job loss, $1000 in case the car breaks down.
Step 2: pay off all debts except the house
We have a student loan and a car loan that we need to pay off. Oh, and some medical bills when we had to go to the ER last summer (3 times) when dh didn't have a job. So that's what we have to pay off after we save up our emergency/job loss fund. You pay interest on all of your debts, so it's a good idea to get them paid off. Once you have no debt, you have more free money every month. Yay!
Step 4: save up 3-6 months of expenses
This is where Dave suggests that you save up in case of a job loss. We're doing more of step 4 in step 1, primarily because the threat of a job loss seems a little more looming than even the refrigerator breaking down. But we'll probably add to our savings here.
I think that step 5 is pay off the house, but it could be save up for retirement or save for your kid's college funds. If I ever get to these steps I'd be all over it ;).
I don't see anywhere in here the instruction to "go out and waste money at the mall." That might postpone the inevitable downturn in the economy, but it's going to happen. You can borrow and live beyond your means forever, even if you are a government. We can try to put our head in the sand and pretend that when our economy grows enough, we will pay off the national debt, but that's just like somebody who goes out and charges up their credit cards saying to themselves "I'll pay it off when I get a raise." When that raise comes, they just want to spend more money on other things.
If we get these tax rebates, I'm saving mine. I'm going to need it whenever the bubble finally bursts. And if everybody else rushing off to the mall or going on vacation ends up prolonging the inevitable, then I guess that gives me a little bit longer to prepare.
As much as I'd really like to have a wii and some new clothes, that's the last thing I'm going to be doing with my money right now.
My husband lost his job 3 times last year. Not because he was goofing off or anything, but he just happened to get hired into jobs that didn't have their contracts removed or had to make cutbacks. With all indications of America's economic bubble bursting at some point, we don't expect things to get better soon. If we get the money, we're saving it. Maybe we'll invest it in gold or some other precious metal.
A couple of days ago, my husband suggested to me something that I never would have imagined that he'd say "let's live like misers." He loves to spend. However, he wants to be prepared in case he loses his job. So our goal is to save up $5000 in case he loses his job again.
It seems as if America has lost all touch with common sense. If you get into debt or spend money that you don't have, eventually you're going to have to pay it back. Visiting my family over Christmas really showed me the effect of being smart with money, and living within one's means, or being stupid. The people that got into debt when I was younger sure had fun then, but they're not exactly that well off any more.
Dave Ramsey is a pretty smart guy when it comes to money. He has a lot of common sense. He has a few baby steps that he suggests that people use when they are trying to work their way to financial independence:
Step 1: save up a baby emergency fund
He suggests that you save up $1000 as a baby emergency fund, in case the car breaks down, the refrigerator stops working, or something unexpected like that comes up. $1000 isn't going to help a whole lot, however, if you lose your job. We're trying to save up $5000 right now... actually we're trying to save up $6000, $5000 in case of a job loss, $1000 in case the car breaks down.
Step 2: pay off all debts except the house
We have a student loan and a car loan that we need to pay off. Oh, and some medical bills when we had to go to the ER last summer (3 times) when dh didn't have a job. So that's what we have to pay off after we save up our emergency/job loss fund. You pay interest on all of your debts, so it's a good idea to get them paid off. Once you have no debt, you have more free money every month. Yay!
Step 4: save up 3-6 months of expenses
This is where Dave suggests that you save up in case of a job loss. We're doing more of step 4 in step 1, primarily because the threat of a job loss seems a little more looming than even the refrigerator breaking down. But we'll probably add to our savings here.
I think that step 5 is pay off the house, but it could be save up for retirement or save for your kid's college funds. If I ever get to these steps I'd be all over it ;).
I don't see anywhere in here the instruction to "go out and waste money at the mall." That might postpone the inevitable downturn in the economy, but it's going to happen. You can borrow and live beyond your means forever, even if you are a government. We can try to put our head in the sand and pretend that when our economy grows enough, we will pay off the national debt, but that's just like somebody who goes out and charges up their credit cards saying to themselves "I'll pay it off when I get a raise." When that raise comes, they just want to spend more money on other things.
If we get these tax rebates, I'm saving mine. I'm going to need it whenever the bubble finally bursts. And if everybody else rushing off to the mall or going on vacation ends up prolonging the inevitable, then I guess that gives me a little bit longer to prepare.
Wednesday, January 16, 2008
The Mexicans Don't Want Their Illegals Back... Boo Hoo
Our state recently passed a law stating that companies who knowingly hire illegal immigrants will have their business licenses revoked. Despite the fact that it is currently being challenged in the courts, the law has had the effect of driving some illegal immigrants out of the state.
Now some Sonoran officials from Mexico are complaining that the new law will hurt the state because of the jobless Mexicans returning to their hometowns.
Could somebody call the Waaaaambulance?
There are several issues here. First, the people that are leaving Arizona and returning to Mexico were not supposed to be here in the first place. Secondly, the people returning are citizens of Mexico, not of the US. They belong in Mexico. Thirdly, this law passed last summer, so people have had at least six months to prepare. In addition, not all of the illegal immigrants are returning to Mexico. Some of them are going to other states; others weren't Mexican illegal immigrants, and are returning to other countries (sometimes it's easy to forget that there are illegal immigrants from countries other than Mexico, but they come from all countries).
Arizona has contributed to the education, health care, social services, and police services of illegal immigrants for far too long. I've waited in the emergency room for 4 hours before waiting to be seen by a doctor... and I can guarantee that many of the people ahead of me were not legally here. I'm sorry if Mexico feels that it can not provide for their own citizens, but what makes them think that we want to?
If the Mexican citizens returning to their own country are hard-working, then in due time they will once again be contributing to the Mexican economy. Mexico is a country with natural resources, and if it's not a place where someone can be an entrepreneur of sorts, then perhaps Mexico should take care of some of the corruption in their government, take a look at how things are run, and allow enterprising people to find ways to make their own money. Other than selling trinkets in tourist areas. Not that selling trinkets can't be an honorable way to make a living, just that there are a lot of them and there should be other options.
I realize that there will be some adjustments to be made. On the part of both Mexico and the state of Arizona. But it can not go on as it has been.
I remember watching a program in the last day or two where they were talking about how we have had recession avoided and put off for years because of low interest rates. It's just like someone who can't pay off their credit cards, so they take out a home equity loan to pay off the credit cards, then end up ringing up their credit card bills again. At some point there is a breaking point. We can't continue to give incentives for illegal immigrants to come live in our state. Our economy can't support it. Especially with the way that the economic future is looking. We either face the music now or face worse music later.
I'm not trying to be heartless, but there are always consequences to pay for your actions. If not now, later. Mexico is partially culpable in the whole illegal immigration mess. They have turned a blind eye to it for quite some time. Unfortunately, if an influx of Mexicans returning home is going to cause a problem, that is just the price that Mexico must pay for not attempting to stop, and even winking at and promoting, the exit of their citizens into our country for so long.
Now some Sonoran officials from Mexico are complaining that the new law will hurt the state because of the jobless Mexicans returning to their hometowns.
Could somebody call the Waaaaambulance?
There are several issues here. First, the people that are leaving Arizona and returning to Mexico were not supposed to be here in the first place. Secondly, the people returning are citizens of Mexico, not of the US. They belong in Mexico. Thirdly, this law passed last summer, so people have had at least six months to prepare. In addition, not all of the illegal immigrants are returning to Mexico. Some of them are going to other states; others weren't Mexican illegal immigrants, and are returning to other countries (sometimes it's easy to forget that there are illegal immigrants from countries other than Mexico, but they come from all countries).
Arizona has contributed to the education, health care, social services, and police services of illegal immigrants for far too long. I've waited in the emergency room for 4 hours before waiting to be seen by a doctor... and I can guarantee that many of the people ahead of me were not legally here. I'm sorry if Mexico feels that it can not provide for their own citizens, but what makes them think that we want to?
If the Mexican citizens returning to their own country are hard-working, then in due time they will once again be contributing to the Mexican economy. Mexico is a country with natural resources, and if it's not a place where someone can be an entrepreneur of sorts, then perhaps Mexico should take care of some of the corruption in their government, take a look at how things are run, and allow enterprising people to find ways to make their own money. Other than selling trinkets in tourist areas. Not that selling trinkets can't be an honorable way to make a living, just that there are a lot of them and there should be other options.
I realize that there will be some adjustments to be made. On the part of both Mexico and the state of Arizona. But it can not go on as it has been.
I remember watching a program in the last day or two where they were talking about how we have had recession avoided and put off for years because of low interest rates. It's just like someone who can't pay off their credit cards, so they take out a home equity loan to pay off the credit cards, then end up ringing up their credit card bills again. At some point there is a breaking point. We can't continue to give incentives for illegal immigrants to come live in our state. Our economy can't support it. Especially with the way that the economic future is looking. We either face the music now or face worse music later.
I'm not trying to be heartless, but there are always consequences to pay for your actions. If not now, later. Mexico is partially culpable in the whole illegal immigration mess. They have turned a blind eye to it for quite some time. Unfortunately, if an influx of Mexicans returning home is going to cause a problem, that is just the price that Mexico must pay for not attempting to stop, and even winking at and promoting, the exit of their citizens into our country for so long.
Highest Inflation in 17 Years
Woke up this morning to see an Excite article to see that inflation is the highest that it's been in 17 years.
Of interest to note, is that the two items that rose the highest last year were energy and food costs. Energy costs were up 17.4 percent, and food costs were up 4.1 percent. This is the highest that it's been since 1990.
The report, issued by the Labor Department, said that inflation outside energy and food costs were tame. I don't know about you, but energy and food costs just happen to be the two things in my budget that are not fixed, and there's only so far you can squeeze them.
Now I'm pretty good with the food costs, and there were several weeks last year that I got by with spending $25 for the week (out of necessity), and that included diapers, but that's primarily because I always shop for things when they are sale and I always have a surplus because I buy this way. People still have to drive to work and back though.
What does a typical person's budget look like? Not the numbers, but whether something is fixed or not. I'll give a breakdown of my budget, and I guess I may be semi-typical, other than I don't have credit cards:
Mortgage - fixed
Car payment - fixed
Student loan - fixed
Trash - fixed, but subject to increase
Sewer - variable
Water - variable
Internet - fixed, rates locked in for now
Vonage (phone) - fixed, but subject to increase
DirecTV - fixed, but subject to increase
Electricity - variable
Gas - variable
Food - variable
I may have other things but I can't think of them. The three largest items in my budget, outside of the mortgage and car payment, are variable. There's not much you can do to decrease them. And they are also the three items that went up the most in 2007.
Because I'm pretty budget conscious when it comes to groceries, I really notice when the prices go up. Surprisingly, around here, the price of ground beef has remained fairly stable, I can still get that for $2 a pound not on sale. There was even one week last year when they had beef on sale for $1 a pound and I was able to buy 20 pounds or so. Milk has gone up, however, as well as soda, processed foods like chili, bread... I even saw a higher price for frozen vegetables two weeks ago.
The question that I'm wondering is... why is the federal reserve keeping interest rates so low? Haven't they been saying for at least 10 years that inflation has not been a problem and that keeping interest rates low was promoting economic growth while keeping inflation down? Since inflation is going up, shouldn't they raise interest rates to try to curb it?
When my parents bought their home in the 1970s, they were lucky because they didn't have to pay a double digit interest rate on their mortgage. Interest rates that high are unheard of today. But maybe they should be closer than that, rather than sitting at the ridiculous lows that they've been at for nearly the past decade.
There is one downside, of course, to raising the interest rates... all those people in adjustable rate mortgages that are already crunched in their budgets. With skyrocketing home values, property taxes have gone up to keep pace with it... I know that our property taxes have gone up nearly $200 a month in the last 2 years... and we don't have an ARM. So I get that raising the interest rates will eventually cause more people to not be able to afford their homes and have to foreclose.
However, the whole point of an adjustable rate mortgage is that it is adjustable. There are usually limits on how much and how fast and ARM can adjust, but the whole point is that they do adjust. They are usually a very stupid idea, because you never know what the future can hold. Everything can seem rosy one minute, but anything can happen... especially when it comes to the economy.
If they don't raise the interest rates and inflation for the things you have to buy continues to skyrocket, everybody will suffer... including the people with ARMs. If they do raise interest rates, maybe the government can keep the dollar from freefalling and maybe we can curb inflation. Course raising interest rates will probably send the housing market into a tailspin and create a lot of foreclosures.
What a choice. Inflation and a weakening dollar, or the housing market going into a tailspin. Tough call.
Of interest to note, is that the two items that rose the highest last year were energy and food costs. Energy costs were up 17.4 percent, and food costs were up 4.1 percent. This is the highest that it's been since 1990.
The report, issued by the Labor Department, said that inflation outside energy and food costs were tame. I don't know about you, but energy and food costs just happen to be the two things in my budget that are not fixed, and there's only so far you can squeeze them.
Now I'm pretty good with the food costs, and there were several weeks last year that I got by with spending $25 for the week (out of necessity), and that included diapers, but that's primarily because I always shop for things when they are sale and I always have a surplus because I buy this way. People still have to drive to work and back though.
What does a typical person's budget look like? Not the numbers, but whether something is fixed or not. I'll give a breakdown of my budget, and I guess I may be semi-typical, other than I don't have credit cards:
Mortgage - fixed
Car payment - fixed
Student loan - fixed
Trash - fixed, but subject to increase
Sewer - variable
Water - variable
Internet - fixed, rates locked in for now
Vonage (phone) - fixed, but subject to increase
DirecTV - fixed, but subject to increase
Electricity - variable
Gas - variable
Food - variable
I may have other things but I can't think of them. The three largest items in my budget, outside of the mortgage and car payment, are variable. There's not much you can do to decrease them. And they are also the three items that went up the most in 2007.
Because I'm pretty budget conscious when it comes to groceries, I really notice when the prices go up. Surprisingly, around here, the price of ground beef has remained fairly stable, I can still get that for $2 a pound not on sale. There was even one week last year when they had beef on sale for $1 a pound and I was able to buy 20 pounds or so. Milk has gone up, however, as well as soda, processed foods like chili, bread... I even saw a higher price for frozen vegetables two weeks ago.
The question that I'm wondering is... why is the federal reserve keeping interest rates so low? Haven't they been saying for at least 10 years that inflation has not been a problem and that keeping interest rates low was promoting economic growth while keeping inflation down? Since inflation is going up, shouldn't they raise interest rates to try to curb it?
When my parents bought their home in the 1970s, they were lucky because they didn't have to pay a double digit interest rate on their mortgage. Interest rates that high are unheard of today. But maybe they should be closer than that, rather than sitting at the ridiculous lows that they've been at for nearly the past decade.
There is one downside, of course, to raising the interest rates... all those people in adjustable rate mortgages that are already crunched in their budgets. With skyrocketing home values, property taxes have gone up to keep pace with it... I know that our property taxes have gone up nearly $200 a month in the last 2 years... and we don't have an ARM. So I get that raising the interest rates will eventually cause more people to not be able to afford their homes and have to foreclose.
However, the whole point of an adjustable rate mortgage is that it is adjustable. There are usually limits on how much and how fast and ARM can adjust, but the whole point is that they do adjust. They are usually a very stupid idea, because you never know what the future can hold. Everything can seem rosy one minute, but anything can happen... especially when it comes to the economy.
If they don't raise the interest rates and inflation for the things you have to buy continues to skyrocket, everybody will suffer... including the people with ARMs. If they do raise interest rates, maybe the government can keep the dollar from freefalling and maybe we can curb inflation. Course raising interest rates will probably send the housing market into a tailspin and create a lot of foreclosures.
What a choice. Inflation and a weakening dollar, or the housing market going into a tailspin. Tough call.
Saturday, January 12, 2008
Is Our Country Headed Toward Economic Ruin?
I wrote in my last post that my dh didn't have a job... but this article is not about our economic picture. I'm happy to say that 1 week upon arriving back from my parent's house for our unexpected Christmas break, my husband has found a temp-to-hire position working at the headquarters of a large grocery chain around here. I'm really proud of him and his skills. When I left the military 4 years ago and my husband took over as breadwinner, it took him over a month to find a job. He lost 3 jobs last year, and each time it has taken him 1 or 2 weeks to find another. Every time he has gone on an interview and blown away the competition. I guess that working hard and improving your skills pays off, eventually. And he's still going to college in the evenings (he's taking 12 units this upcoming semester... completely amazing). The pay for his new job isn't spectacular for a permanent job, but it's pretty good for a temp position... and usually you can expect to get a raise when a company hires a temp permanently.
I'm worried, however, about this country as a whole. It's something that both me and my husband have been predicting for years. Just like the housing bubble. Any logical person could have looked at skyrocketing housing prices years ago and could have told you that it couldn't last forever. When you have to have an income of $90k a year and put down well over $100k to buy a house, something has to give. Just like the dot-com bubble. Remember in the early days of the web, when companies made their money from advertisements, and those companies paying the advertising were also making money that way? I personally made a little pocket change just from putting advertisements on my computer. But it was all a big Ponzi scheme, and eventually, it had to end.
I'm so serious about this, that I called up my grandma today and asked if she would consider moving my inheritance that she currently has invested in Microsoft into gold. She said that she'd consider it. I really do not have confidence in the near-term future of the stock market... near term being the next 5 years, probably less. I believe that in the grand scheme of things... as in... 30-40 years from now, stocks are still a good investment, but I fear that we are headed for an economic downturn of 1930s proportions. I'm doing my best to prepare for it, both mentally and educationally.
Glenn Beck has been talking about the economy a lot recently, which I find interesting, but what he says really only confirms what I already believe. He recommended the book "The Forgotten Man" which I checked out from the Greater Phoenix Digital Library and started reading. It's about the great depression. I'm not sure how things will play out, but I'm trying to learn a little bit about hyperinflation as well... boy that would be fun to go through... NOT.
This article was interesting. Forget the fact that whoever wrote the article is completely out of touch with reality (who seems to think that feeling the middle class squeeze means shopping at Whole Foods and buying cases of Pelligrino)... read some of the accompanying message board postings. You probably won't want to read them all because it goes on for 123 pages at last count, but it truly enlightening. There are SO MANY stories of people who are having difficulty making ends meet, and only a few people that don't feel that way.
I guess a lot of people charged their Christmases this year. Tsk, tsk. I guess that it is okay if you are able to pay off that bill this month, but a lot of people won't be. Unfortunately, the good times on credit cards only last for so long. The income limits might rise for a while, but eventually you have to pay. Like the Bible says, there is pleasure in sin for a season. But is debt a sin? The Bible says that the borrower is slave to the lender.
Interestingly, I found this passage in the Bible as I finished reading the Bible last year (well, I actually finished it on January 1st, but who cares about one extra day):
~ Habbakkuk 2:6b-10
Isn't that what we as a country are doing? And have been doing? The very act of buying on credit is increasing what is not ours! And we as a nation have been stripping other nations for years! Just think of all the Chinese sweatshop workers that labor away to make our clothes and toys. They don't get much out of the deal. They have a job, sure, but not in any sort of condition that we would work in.
It is rather difficult and in some cases impossible to get by without any debt in this country... we had to take out a car loan last year after our old one decided to die; neither of us knows anything about cars so we need something reliable for dh to get to work in. We do have a mortgage, although we tried to go the more modest route, and we have student loans... mine is towards the end of getting paid off, and dh's loans have saved us through some job losses. But should we really be charging Christmas gifts on credit? Or vacations? Things that are unnecessary.
If people stop buying, the economy is going to slow down. That is what we hear. But guess what? People can't spend beyond their means forever! Eventually people have to pay or they lose it.
While on vacation, I got to see many of my relatives. It is interesting to see how your relatives turn out. They're the one set of people, other than your closest friends, that you can say that you've known for decades.
I remember visiting my Aunt and Uncles, a long time ago, and they lived in a little trailer on a piece of property that didn't have electricity. They had it hooked up to a generator. Later on, they lived in a motor home for a while. They've had their share of difficulties, but guess where they live today? A very nice, gorgeous home.
Another Aunt of mine, when I was younger, I thought that they were rich. Always having huge birthday parties, redoing their homes with nice things, getting great presents for their kids. Found out later they were financing and getting home equity loans. They eventually lost their house. Currently my Aunt lives in a trailer.
My parents didn't have much money when I was growing up. We went for years without health insurance because we couldn't afford it. My grandma would always bring home clothes from the Navy Thrift Shop and my mom would make me try them on twice a year. They weren't always the latest fashions, and around 3rd grade or so I didn't really like them. My mom would save money through coupons and refunding, and that's how we funded my first trip to Disneyland in the 4th grade. It was my first time out of state. They're doing pretty well now. They paid off their home, then decided to buy a Harley for dad, remodel the kitchen, and replace the windows in the house, so they took out a small mortgage again for that. But they're doing okay. They were able to take us out to eat a couple of times, weren't worried about how much propane we used in our "guest house" while there (we stayed in their trailer), don't obsess over coupons like they used to, and don't really worry too much over the cost of things like when the VCR goes out all of a sudden. They can afford it.
Too many people nowadays live like my Aunt and overspend, rather than my other Aunt and Uncle, and my parents, who don't look like they have too much initially, but since they're not overspending, end out a lot better in the end. And that, unfortunately, is why our country may be headed for a huge wake up call.
If everybody paid their fair share of the national debt today, we'd all have to cough up over $30,000. That's for every mom, every dad, every grandpa, and every baby. It would be over $120,000 just for the people in my house. That's what my home mortgage is. But that's what we all owe, and it's getting bigger every day. I just can't see this going on forever.
Despite this, I think that we personally (as in, my immediate family consisting of me, dh, dd and ds) can make it through. Dh has a lot of skills, I've learned a lot about coupons and frugality, and we're mentally prepared to hold on in the bumpy years that may lie ahead. More importantly, I know that no matter how things get down here, there is always a better day ahead. And I've read history. I know that times get better eventually. That is, unless we're headed toward the last days spoken of in Revelation... and even they get better after Jesus comes back and begins the millennial kingdom. I also know that historically, we live lives that even kings and queens wouldn't even dream of back in the middle ages. And most people in Iraq would love to trade places with us. It's all a matter of perspective.
I'm worried, however, about this country as a whole. It's something that both me and my husband have been predicting for years. Just like the housing bubble. Any logical person could have looked at skyrocketing housing prices years ago and could have told you that it couldn't last forever. When you have to have an income of $90k a year and put down well over $100k to buy a house, something has to give. Just like the dot-com bubble. Remember in the early days of the web, when companies made their money from advertisements, and those companies paying the advertising were also making money that way? I personally made a little pocket change just from putting advertisements on my computer. But it was all a big Ponzi scheme, and eventually, it had to end.
I'm so serious about this, that I called up my grandma today and asked if she would consider moving my inheritance that she currently has invested in Microsoft into gold. She said that she'd consider it. I really do not have confidence in the near-term future of the stock market... near term being the next 5 years, probably less. I believe that in the grand scheme of things... as in... 30-40 years from now, stocks are still a good investment, but I fear that we are headed for an economic downturn of 1930s proportions. I'm doing my best to prepare for it, both mentally and educationally.
Glenn Beck has been talking about the economy a lot recently, which I find interesting, but what he says really only confirms what I already believe. He recommended the book "The Forgotten Man" which I checked out from the Greater Phoenix Digital Library and started reading. It's about the great depression. I'm not sure how things will play out, but I'm trying to learn a little bit about hyperinflation as well... boy that would be fun to go through... NOT.
This article was interesting. Forget the fact that whoever wrote the article is completely out of touch with reality (who seems to think that feeling the middle class squeeze means shopping at Whole Foods and buying cases of Pelligrino)... read some of the accompanying message board postings. You probably won't want to read them all because it goes on for 123 pages at last count, but it truly enlightening. There are SO MANY stories of people who are having difficulty making ends meet, and only a few people that don't feel that way.
I guess a lot of people charged their Christmases this year. Tsk, tsk. I guess that it is okay if you are able to pay off that bill this month, but a lot of people won't be. Unfortunately, the good times on credit cards only last for so long. The income limits might rise for a while, but eventually you have to pay. Like the Bible says, there is pleasure in sin for a season. But is debt a sin? The Bible says that the borrower is slave to the lender.
Interestingly, I found this passage in the Bible as I finished reading the Bible last year (well, I actually finished it on January 1st, but who cares about one extra day):
Woe to him who increases what is not his! Until when, then, shall he load the pledges on himself?
Shall not those who strike you rise up suddenly, and those who shake you awake, and you become a prize to them?
Because you have stripped many nations, all the rest of the people shall strip you; because of men's blood, and the violence of the land, of the city, and of all who dwell in it.
Woe to him who robs evil booty for his house, to set his nest on high, to be delivered from the hand of evil!
You have planned shame to your house, to make an end of many people, and are sinning in your soul.
Isn't that what we as a country are doing? And have been doing? The very act of buying on credit is increasing what is not ours! And we as a nation have been stripping other nations for years! Just think of all the Chinese sweatshop workers that labor away to make our clothes and toys. They don't get much out of the deal. They have a job, sure, but not in any sort of condition that we would work in.
It is rather difficult and in some cases impossible to get by without any debt in this country... we had to take out a car loan last year after our old one decided to die; neither of us knows anything about cars so we need something reliable for dh to get to work in. We do have a mortgage, although we tried to go the more modest route, and we have student loans... mine is towards the end of getting paid off, and dh's loans have saved us through some job losses. But should we really be charging Christmas gifts on credit? Or vacations? Things that are unnecessary.
If people stop buying, the economy is going to slow down. That is what we hear. But guess what? People can't spend beyond their means forever! Eventually people have to pay or they lose it.
While on vacation, I got to see many of my relatives. It is interesting to see how your relatives turn out. They're the one set of people, other than your closest friends, that you can say that you've known for decades.
I remember visiting my Aunt and Uncles, a long time ago, and they lived in a little trailer on a piece of property that didn't have electricity. They had it hooked up to a generator. Later on, they lived in a motor home for a while. They've had their share of difficulties, but guess where they live today? A very nice, gorgeous home.
Another Aunt of mine, when I was younger, I thought that they were rich. Always having huge birthday parties, redoing their homes with nice things, getting great presents for their kids. Found out later they were financing and getting home equity loans. They eventually lost their house. Currently my Aunt lives in a trailer.
My parents didn't have much money when I was growing up. We went for years without health insurance because we couldn't afford it. My grandma would always bring home clothes from the Navy Thrift Shop and my mom would make me try them on twice a year. They weren't always the latest fashions, and around 3rd grade or so I didn't really like them. My mom would save money through coupons and refunding, and that's how we funded my first trip to Disneyland in the 4th grade. It was my first time out of state. They're doing pretty well now. They paid off their home, then decided to buy a Harley for dad, remodel the kitchen, and replace the windows in the house, so they took out a small mortgage again for that. But they're doing okay. They were able to take us out to eat a couple of times, weren't worried about how much propane we used in our "guest house" while there (we stayed in their trailer), don't obsess over coupons like they used to, and don't really worry too much over the cost of things like when the VCR goes out all of a sudden. They can afford it.
Too many people nowadays live like my Aunt and overspend, rather than my other Aunt and Uncle, and my parents, who don't look like they have too much initially, but since they're not overspending, end out a lot better in the end. And that, unfortunately, is why our country may be headed for a huge wake up call.
If everybody paid their fair share of the national debt today, we'd all have to cough up over $30,000. That's for every mom, every dad, every grandpa, and every baby. It would be over $120,000 just for the people in my house. That's what my home mortgage is. But that's what we all owe, and it's getting bigger every day. I just can't see this going on forever.
Despite this, I think that we personally (as in, my immediate family consisting of me, dh, dd and ds) can make it through. Dh has a lot of skills, I've learned a lot about coupons and frugality, and we're mentally prepared to hold on in the bumpy years that may lie ahead. More importantly, I know that no matter how things get down here, there is always a better day ahead. And I've read history. I know that times get better eventually. That is, unless we're headed toward the last days spoken of in Revelation... and even they get better after Jesus comes back and begins the millennial kingdom. I also know that historically, we live lives that even kings and queens wouldn't even dream of back in the middle ages. And most people in Iraq would love to trade places with us. It's all a matter of perspective.
Friday, August 17, 2007
Stock Market Turmoil: Could This Lead To Something Big?
I've been watching with interest the volatile stock market for the past week or so. Some people are getting a little nervous. Some are selling off their stock and losing money, others are picking up bargains and may or may not end up making money long term. This is all on top of a housing market that is quickly losing steam, banks making it harder to borrow money for a house, and people stuck in adjustable rate mortgages with rising payments.
For those without God, this could be a scary time. I suppose that I might be a little worried too, if I didn't know that God was in control. My husband starts his new job on Monday. Starting a new job in a time with an uncertain economy has it's natural risks... although we didn't really have a choice since he lost his last one due to cutbacks.
I personally don't think that America is mentioned in Revelation or any of the prophetic passages of the Bible. There is a passage somewhere about an eagle getting it's wings clipped or something along those lines, but that's the only one that I can think of, and that's not pretty. I know that some people think that America and Babylon are one and the same, but my opinion is that Babylon is actually Babylon... that city in Iraq. I don't think that God would use the name of an actual city if he really meant something else. Feel free to disagree with me, it's not a matter of salvation or anything else of vital importance.
America itself seems to be in a perilous time. There are so many countries in the world that hate us for one reason or another. That wouldn't bother me so much, if our country wasn't in such moral decay. Sometimes it's difficult to even discern right and wrong, even with reading your Bible and going to church on a regular basis. There are games and books out there that aren't the most wholesome, it's so easy to steal songs over the internet, even just going to the mall for tennis shoes leaves you bombarded with images that it's better not to see. Earlier this year, I was reading through Leviticus, I noted with particular interest chapter 18, which lists all these sins, saying that the land will vomit one out for these sins. The whole chapter easily described our country. Could America be in trouble for its sins?
Me and my husband have discussed moving to Australia. It's a nice enough country, that doesn't seem to be like the Roman Empire in its state of decline. I spent 5 weeks there in 1997 and it seemed like a second home to me... I have been fond of it ever since. It's quite expensive to just pack up and move to another country, so for financial reasons, God has told us we can't go right now. Perhaps we will not ever go.
I do not wish ill on my country, but I try to prepare in case we do see a downfall. I stock up on nonperishable food, a little at a time. You never know when you might have to be quarantined to your house during a bird flu epidemic, or the economy goes haywire and food becomes an expensive luxury.
But most of all, I try to prepare mentally for the possibility of the tide of prosperity turning in America. I try to keep in mind that God is in control, and no matter what happens in this life, it is only temporary and better things await for those that love God. I try to realize how fortunate I am right now... to have enough to eat, a place to stay, a nice computer, great kids. I try to enjoy the blessings now, and not take them for granted. I try to think of all the Christians around the world today, and throughout history, who were killed or forced into hiding for their faith. God helped them through the worst circumstances we can imagine... if we are ever put in a situation like that, I try to trust (and pray) that God would give me the strength to deal with it.
So I watch the stock market with interest. I don't wish for it to drop (especially since I have an inheritance that is bound up in Microsoft stock), but I realize that God has a plan for this country, for good or for bad, and he is in control.
For those without God, this could be a scary time. I suppose that I might be a little worried too, if I didn't know that God was in control. My husband starts his new job on Monday. Starting a new job in a time with an uncertain economy has it's natural risks... although we didn't really have a choice since he lost his last one due to cutbacks.
I personally don't think that America is mentioned in Revelation or any of the prophetic passages of the Bible. There is a passage somewhere about an eagle getting it's wings clipped or something along those lines, but that's the only one that I can think of, and that's not pretty. I know that some people think that America and Babylon are one and the same, but my opinion is that Babylon is actually Babylon... that city in Iraq. I don't think that God would use the name of an actual city if he really meant something else. Feel free to disagree with me, it's not a matter of salvation or anything else of vital importance.
America itself seems to be in a perilous time. There are so many countries in the world that hate us for one reason or another. That wouldn't bother me so much, if our country wasn't in such moral decay. Sometimes it's difficult to even discern right and wrong, even with reading your Bible and going to church on a regular basis. There are games and books out there that aren't the most wholesome, it's so easy to steal songs over the internet, even just going to the mall for tennis shoes leaves you bombarded with images that it's better not to see. Earlier this year, I was reading through Leviticus, I noted with particular interest chapter 18, which lists all these sins, saying that the land will vomit one out for these sins. The whole chapter easily described our country. Could America be in trouble for its sins?
Me and my husband have discussed moving to Australia. It's a nice enough country, that doesn't seem to be like the Roman Empire in its state of decline. I spent 5 weeks there in 1997 and it seemed like a second home to me... I have been fond of it ever since. It's quite expensive to just pack up and move to another country, so for financial reasons, God has told us we can't go right now. Perhaps we will not ever go.
I do not wish ill on my country, but I try to prepare in case we do see a downfall. I stock up on nonperishable food, a little at a time. You never know when you might have to be quarantined to your house during a bird flu epidemic, or the economy goes haywire and food becomes an expensive luxury.
But most of all, I try to prepare mentally for the possibility of the tide of prosperity turning in America. I try to keep in mind that God is in control, and no matter what happens in this life, it is only temporary and better things await for those that love God. I try to realize how fortunate I am right now... to have enough to eat, a place to stay, a nice computer, great kids. I try to enjoy the blessings now, and not take them for granted. I try to think of all the Christians around the world today, and throughout history, who were killed or forced into hiding for their faith. God helped them through the worst circumstances we can imagine... if we are ever put in a situation like that, I try to trust (and pray) that God would give me the strength to deal with it.
So I watch the stock market with interest. I don't wish for it to drop (especially since I have an inheritance that is bound up in Microsoft stock), but I realize that God has a plan for this country, for good or for bad, and he is in control.
Sunday, July 15, 2007
Is John Stossel Right About Price Gouging? Zimbabwe and Food
Right now, Zimbabwe is facing a crisis. The people are starving. The president, in his infinite wisdom, has decided to ban the import of groceries for resale, despite starvation in the country.
I guess he's afraid of price gouging. There seems to be an inflationary crisis going on there. He recently forced electrical shops to reduce the price of televisions to 2 million from 50 million Zimbabwe dollars... there are no more TV sets to be found now.
John Stossel's position, stated in Myths, Lies, and Downright Stupidity, is that price gouging is not bad. Huh?
Well, maybe he's got a point.
I didn't know anything about Zimbabwe's problems until yesterday. I guess Paris Hilton getting to wear new underwear and having phone privileges in jail is more important than a starving African nation (who knew?). Doing a quick Wikipedia search, I learned that last month's unofficial inflation rate was 11,000%, and may reach 1.5 million percent by the end of the year. Yowsers! And I thought that seeing the cost of bread rise from $1 to $1.50 was bad.
Getting back to the food crisis and price gouging. The president is banning the imports of groceries into the country. People are starving. Does this make any sense? Just about as much sense as when farm owners used to spray crops during the great depression so their food was inedible because they couldn't afford to pay people to pick the crops (um... couldn't they have just given the crop pickers a few pounds of the food they picked and called it even?).
The fact that President Mugabe forced a lower price on television sets makes me believe that he's probably concerned about price gouging. But when your country is in the middle of runaway inflation and your citizens are starving, that seems to be a small thing in comparison. So let the groceries in the country and sort out the price gouging thing later... wouldn't that make sense?
Back to why John Stossel thinks that price gouging can be a good thing, and how it relates to Zimbabwe and the price of food and television sets.
In his book, he points to Hurricane Katrina. People were jacking up the prices of batteries and generators. On the surface that seems really bad. However, if you keep the prices low, a few people are going to come into the grocery store in a panic and buy out all the batteries. They might only need one pack of batteries, but they're going to buy 5 because a) they can, and b) they're scared because the hurricane's coming. But because a few people buy out all the batteries, many other people are left without batteries. Perhaps the solution to this is to limit the number of batteries per customer? But raising the price can have a similar affect.
What about generators? People aren't going to buy 10 generators in a panic. Most people will buy one. However, if generators sell for more, it encourages outside people to bring generators into the area. One example I remember reading about, a man found out that people needed generators after Hurricane Katrina, and he rented a truck and drove some down to the hurricane-affected area. It cost him a lot of money to rent the truck, pay for all the gas to get down there, plus he took on added risk by driving the post-hurricane streets, etc. So he sold the generators for well above the normal cost because of this. He got in trouble for this. It seems a little unjust, because the people that purchased the generators were probably very happy to have them. The man wouldn't have been able to get the generators to the customers without increasing the cost above normal.
So back to starving Zimbabwe. If you were in Zimbabwe, wouldn't you be happy to find food? Obviously some people are able to afford it at the prices being offered, otherwise the groceries wouldn't have been imported and sold at that rate. It's hard to imagine here in America, where we currently have such a surplus of food that most people are well fed, but if you are starving, you are happy to have food, at whatever price. By banning food imports, not only is Mugabe keeping the high-priced food out of the country, but the food that is left is going to skyrocket in price... that is, if he doesn't try to put price controls on the food. If he does put price controls on the food, a) there will quickly be no food left on the shelves to sell, and b) a food black market would most likely open up where food sells for an outrageous price.
I don't know what will happen in Zimbabwe, but it doesn't sound pretty there. Runaway inflation and no food is not a scenario that I would like to go through.
Perhaps they should learn how to make chopped cardboard dumplings? Sorry, I suppose that might be a bit in poor taste... but I had to say it anyway.
read more | digg story
I guess he's afraid of price gouging. There seems to be an inflationary crisis going on there. He recently forced electrical shops to reduce the price of televisions to 2 million from 50 million Zimbabwe dollars... there are no more TV sets to be found now.
John Stossel's position, stated in Myths, Lies, and Downright Stupidity, is that price gouging is not bad. Huh?
Well, maybe he's got a point.
I didn't know anything about Zimbabwe's problems until yesterday. I guess Paris Hilton getting to wear new underwear and having phone privileges in jail is more important than a starving African nation (who knew?). Doing a quick Wikipedia search, I learned that last month's unofficial inflation rate was 11,000%, and may reach 1.5 million percent by the end of the year. Yowsers! And I thought that seeing the cost of bread rise from $1 to $1.50 was bad.
Getting back to the food crisis and price gouging. The president is banning the imports of groceries into the country. People are starving. Does this make any sense? Just about as much sense as when farm owners used to spray crops during the great depression so their food was inedible because they couldn't afford to pay people to pick the crops (um... couldn't they have just given the crop pickers a few pounds of the food they picked and called it even?).
The fact that President Mugabe forced a lower price on television sets makes me believe that he's probably concerned about price gouging. But when your country is in the middle of runaway inflation and your citizens are starving, that seems to be a small thing in comparison. So let the groceries in the country and sort out the price gouging thing later... wouldn't that make sense?
Back to why John Stossel thinks that price gouging can be a good thing, and how it relates to Zimbabwe and the price of food and television sets.
In his book, he points to Hurricane Katrina. People were jacking up the prices of batteries and generators. On the surface that seems really bad. However, if you keep the prices low, a few people are going to come into the grocery store in a panic and buy out all the batteries. They might only need one pack of batteries, but they're going to buy 5 because a) they can, and b) they're scared because the hurricane's coming. But because a few people buy out all the batteries, many other people are left without batteries. Perhaps the solution to this is to limit the number of batteries per customer? But raising the price can have a similar affect.
What about generators? People aren't going to buy 10 generators in a panic. Most people will buy one. However, if generators sell for more, it encourages outside people to bring generators into the area. One example I remember reading about, a man found out that people needed generators after Hurricane Katrina, and he rented a truck and drove some down to the hurricane-affected area. It cost him a lot of money to rent the truck, pay for all the gas to get down there, plus he took on added risk by driving the post-hurricane streets, etc. So he sold the generators for well above the normal cost because of this. He got in trouble for this. It seems a little unjust, because the people that purchased the generators were probably very happy to have them. The man wouldn't have been able to get the generators to the customers without increasing the cost above normal.
So back to starving Zimbabwe. If you were in Zimbabwe, wouldn't you be happy to find food? Obviously some people are able to afford it at the prices being offered, otherwise the groceries wouldn't have been imported and sold at that rate. It's hard to imagine here in America, where we currently have such a surplus of food that most people are well fed, but if you are starving, you are happy to have food, at whatever price. By banning food imports, not only is Mugabe keeping the high-priced food out of the country, but the food that is left is going to skyrocket in price... that is, if he doesn't try to put price controls on the food. If he does put price controls on the food, a) there will quickly be no food left on the shelves to sell, and b) a food black market would most likely open up where food sells for an outrageous price.
I don't know what will happen in Zimbabwe, but it doesn't sound pretty there. Runaway inflation and no food is not a scenario that I would like to go through.
Perhaps they should learn how to make chopped cardboard dumplings? Sorry, I suppose that might be a bit in poor taste... but I had to say it anyway.
read more | digg story
Saturday, July 14, 2007
China Returns US Meat
In a previous post, I mentioned that China has been importing shoddy and/or dangerous products into our country. Some pets have died from poisons in Chinese pet food, poison has been found in Chinese toothpaste, even diapers imported from China have been found with mold in them. Clearly, the quality of Chinese imports seems to have gone downhill.
Now, there's a second part to the story. China is now refusing some of the US's meat imports. While you might say... uh... who cares?... this could lead to more serious consequences.
I've been saying for years that China is clearly not our friend. I made several trips to Panama in 1999. If you recall, at the end of that year, the US gave back the canal to Chin... er... Panama. Even though the canal is technically Panama's... China has control of a lot of the property down there.
Nobody can know for sure whether this import fight will lead to anything more, hopefully it will not. However, China is big, they want to be a player on the world's stage, and they have a lot of people. The Bible also says that the Kings of the East will be supplying a large supply of people for the big Middle East fight in the tribulation. The China story is definitely one to watch.
read more | digg story
Now, there's a second part to the story. China is now refusing some of the US's meat imports. While you might say... uh... who cares?... this could lead to more serious consequences.
I've been saying for years that China is clearly not our friend. I made several trips to Panama in 1999. If you recall, at the end of that year, the US gave back the canal to Chin... er... Panama. Even though the canal is technically Panama's... China has control of a lot of the property down there.
Nobody can know for sure whether this import fight will lead to anything more, hopefully it will not. However, China is big, they want to be a player on the world's stage, and they have a lot of people. The Bible also says that the Kings of the East will be supplying a large supply of people for the big Middle East fight in the tribulation. The China story is definitely one to watch.
read more | digg story
Wednesday, June 27, 2007
Food fight?
For nation will rise against nation, and kingdom against kingdom. And there will be famines and pestilences and earthquakes in different places.
Reading the newspaper is almost like reading the last books of the Bible sometimes. We have wars and rumors of wars, earthquakes in diverse places, the threat of superbugs like bird flu... even our food supply seems to be coming up with one poison after another. I don't remember seeing too many food recalls even a few years ago, but I've been seeing about one every month recently. Even the toothpaste and pet food is coming up messed up.
Between hurricane Katrina and the bird flu scare (which is a threat that hasn't really gone away it just doesn't make news any more), I have started to become a food collector. An extra box of cereal here, a bag of beans there. Stuff that will last a while.
I'm very budget conscious... I notice when the prices go up. The price of a gallon of store brand water, for example, has gone up $.09 in the past year at my local grocery store. The price of a 2-liter bottle of soda has gone up about $.25 in the last 6 months (they're always having sales so sometimes it is higher than that and occasionally lower, but the that's the raise of the typical price). Bread has gone up $.20 in the last 2 months. And many other items which I used to be able to get for $1 during the store's low point in their sales cycle has gone up to $1.25 during the low point in their sales cycle.
I used to be able to get a whole week's worth of food for $40, for me, dh, and my toddler. Now I'm spending $80. The $40 value wasn't 20 years ago... it was 3 years ago. Now, part of the grocery increase was due to us having more money and buying more stuff that's not on sale. $10 of that money goes to buy my dh's lunches... if he took leftovers to lunch that amount would go down. If I shopped the same way as 3 years ago, I'm pretty sure I would need at least $65 a week to buy the same amount of food that $40 could buy 3 years ago.
I've been reading a lot about crops getting destroyed due to a salmonella outbreak, chickens being slaughtered because they have bird flu, and herds of cows being killed because some cow has mad cow disease. With all this food being destroyed, I can't help but wonder if the world's food supply is not going to meet the demand one of these days. Then I see this article. I guess that I'm not the only person concerned about the food supply. Especially with the recent surge in popularity of Ethanol, which causes more corn to be diverted to making energy instead of food.
The day will come one day when food is scarce. That's what the Bible says. Hopefully it will be a while from now, but just in case, I'll pick up an extra box of cheerios at the grocery store this week.
6 And I heard a voice in the midst of the four living creatures say, A choenix of wheat for a denarius, and three choenixes of barley for a denarius. And do not hurt the oil and the wine.
7 And when He had opened the fourth seal, I heard the voice of the fourth living creature say, Come and see.
8 And I looked, and behold, a pale horse. And the name of him sitting on it was Death, and Hell followed with him. And authority was given to them over the fourth part of the earth, to kill with the sword and with hunger and with death and by the beasts of the earth.
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