Financial - I'm worried

[billythekid]

Ok, don't know what happened, but suddenly I'm REALLY scared for the state of our economy. With the fall of indybank, gas at $4.xx a gallon, slumping sales I find myself worried. Sure the FDIC can handle a few banks failing. BUT can they handle 100+ banks collapsing? Is it time to pull everything out of the banks? Is this the type stuff that lead to the great depression? Is it a bad idea to put all of this money towards an education when in 5 years a degree may be useless?

[berlinsmommy]

You cannot listen to all the "sky is falling" media hype. It is an election year and everyone is trying to freak you out. You have to put that aside and look at the facts. Yes, there is no denying that the economic prosperity of the last ~10 years is coming to a rapid halt, but for people who look back beyond the last 10 years and realize they were not "normal", but rather a big boom, we are now "normalizing". The days of rapidly inflating housing values and cheap gas (by global standards) is over.

During periods of recession, basic goods and services are still very much in demand. People may not spend as much on fancy clothes and SUVs, but everyone needs food, medical care, utilities, and other basic needs met.

If anything, you need a degree even more when the economy is not booming. When unemployment was at record lows, pretty much anyone with a pulse could get a job if they looked/tried hard enough. Now the competition is getting fiercer and you need to do what you can to get ahead. I would also stick to a degree in a core field and avoid the arts. In hard times, people still need doctors and nurses, accountants, managers, etc. Now, of course, you have to also pick a degree based on your personal inclinations (like if the site of blood terrifies you, you will probably not make a very good doctor), but if anything in these hard times, a degree is definitely more desirable, not less.

[Jiji]

Billy, this too shall pass.

[Mothernature]

Isn't it funny the same law enacted to protect people's money has brought back a depression like downfall?

Yes, the Glass-Steagall act which Clinton altered to allow this sub-prime collapse to happen.

Refer to the Grapes of Wrath. Who ran the banks and who worked in the fields? This should answer your education question.

Looking for a boxcar on the side of the road....

[BillyBoy]

Depression like downfall???

[Mothernature]

Banks failing, housing market near collapse, etc.

[wheels111]

The US Government stands behind the FDIC. The FDIC will NOT run out of money.
Your funds (up to $100,000) are guaranteed. Don't panic!

Yeah, it's all media hype!

[saving4earlyretirement]

we are heading up to Canada this weekend - I'm interested to see what the media says up there.

[joshmamabear]

I think most people here have read the writing on the wall as far back as 2 or 3 yrs ago and I'd like to think many have started preparing from then on. I'd rather concentrate on making the most of what we have, what we can do with the present situation. I don't want to dwell on more negativities, I'm grateful for the stockpile of necessities that can tide us over till it gets better. Tough times don't last, tough people do.

[Andra]

During slow economic times the best place to be is in college. You can live cheaper, you get discounts for many things and you can get a tax deduction for your tuition payments (unless your parents are taking it). Plus, by the time you get done the economy may turn around and you will be competitive. I've read that more people go back to get second degrees or graduate degrees when there's a recession. You want to continue your education to complete with them for the better jobs. If I had it to do all over again I would have taken longer to get through college and taken out fewer loans. In fact, I'm considering going back now.