BF2S Forums Economic problems for Average Joe in the US

Well - it sucks to be a non-exporting American right now. The inflation is really high, and the dollar has reached a 2-year low. Dollar:Pound has dropped to what they had back in '92, Dollar:Euro back to 2004. Interest rates are being raised to stiffle some of the growth, but that in turn makes new problems - houses and cars cost more to buy thanks to money borrowing fees, and consumers don't spend as much of their money on other products.
Good luck,

-konfusion

I could easily fill up several pages on how the neo-cons have basically tanked our economy, but the bottom line is that when the government blows up spending and lowers taxes, and takes regulation off of predatory banking concerns (among other industries), it generally makes things very bad for the average working joe when it "trickles down".  Impending total economic collapse is on a very short fuse right now, and my heart really goes out to my family in the US that are working 2 or 3 jobs each, being nailed by medical bills (2 lingering cancer deaths in my immediate family in the last 3 years), being given the choice of military or no college (my brother is loving West Point though), my dad not being able to retire at 60, etc.  All the while knowing full well that they never asked for a handout or help in their entire lives and they're getting screwed.  I already purchased 3 properties in the resort area of Brasov here in Transylvania, and I think soon my family will have need to use them when the shit really hits the fan if they're willing to actually make the move.  I've already dumped the last of my dollars 2 years ago and now just hold cash in Euros and gold and silver for savings, and living in a very "self-sustaining" environment here in Romania (they ain't poor, but they can make their own everything from booze to clothes) will help a lot as it has already.  I've already brought my dad out here twice to get him used to the idea and he made some friends in Brasov with some Brit and German expats that have already made the move, so he's cool.  In June he brings out my step-mom to see if he can get her used to the idea also.  Currently they're pretty entrenched in a small city in Iowa, so I don't know if they can give up their community standing for a chance not to be in the poor house when it all comes to a head.

My step-dad is an anesthesiologist, and my mom is a stay-at-home debutant fundie, so there's not much help for them.  They do need to change towns/regions every 5 years or so to keep up with the best cost of living index or they see their own value of savings plummet if they stick to one place too long.  My mom is also understandably a pro-tax cut Bushie (my step-dad hates him, go figure), but they're both scared shitless of the possibility of Hillary's universal healthcare.  They are the perfect example though of the only type of people that should support Bush...white, completely clueless, never been to a foreign country, no kids in the military (anymore), and earning over $500k/year.  Bush's "base".

Not sure if this helps anyone, but it should be known that there are other options for those that want to explore the world a bit and break free of the ruinous debt-cycle many Americans are currently trapped in.  Southeast Asia (Thailand, Vietnam), Central/South America (Argentina, Honduras, Ecuador), and parts of Eastern Europe (Poland, Hungary, Bulgaria, Romania) all contain islands of extremely stable political and economic landscapes, but the property is going fast and the cost to "buy in" is going up every year.  If you have a bit of money to throw around, you could live a long, relaxed, and healthy lifestyle in any of these places.

Last edited by GorillaTicTacs (2007-04-16 03:10:22)

I blame Bush.

It's usually easier to blame it on him when something is wrong and I'm too lazy to find out the specifics of what is causing the problem. 

Besides, I'm probably right.

Cougar wrote:

I blame Bush.

It's usually easier to blame it on him when something is wrong and I'm too lazy to find out the specifics of what is causing the problem. 

Besides, I'm probably right.

You are right. And when his time is done, he'll blame a broken economy on the Democrats. You can make the economy look good depending on how you present the numbers.  Thats what hes done for 6 years.

ah, the joys of "negative equity" - who can blame them from just walking away?

Cougar wrote:

I blame Bush.

It's usually easier to blame it on him when something is wrong and I'm too lazy to find out the specifics of what is causing the problem. 

Besides, I'm probably right.

Seconded

I have no problems, and I am average.

Hunter/Jumper wrote:

Sorry, Not much of a " shit storm " here really. The exponential rise of housing prices has become a gradual rise but still rising. Money is there if you want to work for it. If you want to blame the economy for your failures, you can. I remember a post a while back that stated because Italy was going to stop buying US silver ( or some dam thing) we would a be in bread lines soon. The USSR was going to bury us etc. Still here ! though admittedly some ( see above ) cant hack it.

Ps Good idea !  don't invest in realestate. lol

You do know that there are better ways of multiplying your money than by investing in property, namely by investing in stock markets...

I've been to places like Buffalo and Schenectady in upstate New York - those places are Shitsville boarded up ghost towns.

Last edited by CameronPoe (2007-04-16 08:11:48)

The case in question that was on the news yesterday was family that had bought a house for $132.000 and after some of their neighbours had to sell for the same reasons listed above now only could sell it for $87.000 and their mortgage was about the same as the buying price leaving them with a debt of $45.000.

And this if they even could sell it because with all the people moving there wheren`t many interested in buying a home in that area, and all this partially because the economical advisor in the bank "tricked" them into the deal by granting a loan they could not afford thus he said in the beginning that they could !

Is there no news about this in the US ?

I am in the process of selling my first home and buying a larger home to accomidate my growing family.  My wife and I both work and together we are low end middle class.  However, we have done our budget and have worked out what we can afford.  Most new home buyers are clueless as to what they can afford and what type of house they need to buy to be able to resell and build equity later.  It is not neccesarily a problem with the economy or preditory lenders, it is a need for education on the consumer side.  I have just helped my younger brother and his wife find a home and counciled them on the mistake I made the first time around.  I will admit that I learned alot in the 6 years I have owned my house.  It took me a while to get my budget in line but it was something that I needed to learn and that new owners need to be aware of.  I do not blame the economy on any of these issues.  People need realistic cost estimates when they make decisions, they need to understand that when you go from a one cost apartment rent to a multiple bill home (gas, electric, water, garbage) not all things are included in your house payment.  Apartments do a disservice by including utilities in many of the rental agreements.  People don't learn the real cost of living.

i think ever1 knows subprime market was a bubble waiting to burst ...

but what is the 'average joe'?

Varegg wrote:

The case in question that was on the news yesterday was family that had bought a house for $132.000 and after some of their neighbours had to sell for the same reasons listed above now only could sell it for $87.000 and their mortgage was about the same as the buying price leaving them with a debt of $45.000.

And this if they even could sell it because with all the people moving there wheren`t many interested in buying a home in that area, and all this partially because the economical advisor in the bank "tricked" them into the deal by granting a loan they could not afford thus he said in the beginning that they could !

Is there no news about this in the US ?

Now comes the plug (even though my license is inactive)...

That is why you talk to a Realtor.  Whether you are buying a new or older home, they can give you numbers on growth in the area.  Plus they can give you advice and prevent you from being redlined into an area that you are not going to be comfortable in.

In the case above, the person may have been able to find out through a Realtor that like houses in the area were only selling for half the purchase price.  It's part of the job!

Also, at least here in Texas, the Realtor representing the buyer is paid by the person selling the home.  Therefore, the Realtor is working for you for FREE! 

See a professional before you make such a big decision!