What's your plan to survive a deep recession?

[lburgess]

[quote=Dengineer;1885380]I couldn't agree more! I keep hearing about how things are looking up and I just don't see it. I think we're headed straight down the toilet and it's going to be a LONG time before things are right again, if ever. I just wish the government would stop trying to fix everything--they are only making it worse![/quote

If you believe that history follows trends then all that is currently transpiring will ultimately result in a fascist type of government. What we are experiencing now and will continue to experience throughout '09-'10 is the same pathway which the Weimar Republic took that led to the rise of the Third Reich. It scared the crap out of me when I heard the masses cheering on Obama and World leaders touting him as a messiah (little m). I don't think things will ever be right again. We have a government that is utilizing the same failed Keynesian Economic model that has consistantly failed since the 1930's. I wish all Americans would become informed and understand that the entity that prints money in the US is a private bank (the Fereral Reserve which is no more Federal than Fereral Express). We have a fiat currency that is based upon debt, if there is no debt there is no currency. The currency is based on nothing except faith, when that faith fails the currency fails. I hope Americans wake up. I read "The Creature From Jekyll Island" in an economics class back in 1998 and it was a wakeup call. I would advise everyone read it. You have been lied to, realize it and get out of the ponzi scheme.

I would be surprised if we don't see a currency crisis by Oct and a banking holiday. It is rather odd that all our Embassies have been advised to hoard a years worth of their local currencies!!! When this happens you may receive little to no warning. A force majeure means that not even the FDIC will protect your money. It is a repudition of debt. If you consider that our dollar is an instrument of debt you will see where I'm leading!

[lburgess]

I know a lot of people are concerned about our economy but instead of worrying I want you to act. Vote with your dollars, this is your answer.

Look, we can rant and rave about market manipulation and government-sponsored games. We can petition the SEC, the FBI and Congress. We can demand that they stop it all we want.
But they haven't and likely won't until and unless America gets pissed off enough to force them to act.
So how do we make that happen, yet remain within the law?
Its not that hard, and in the intermediate and longer-term it would be incredibly positive for our economy and nation.
We go on a consumption strike until and unless our demands are met.
What are our demands? Here's the list:

• All the financial fraudsters are investigated, indicted, and prosecuted. This includes the con artists in CONgress who got "special deals" from Mozilo and his "Friends of Angelo" program (and who are blocking a subpoena to BofA as it would implicate them), it includes those past and current members of Government Sachs, and it includes all those other financial "professionals" who deceived Americans and others with their sale of toxic exploding mortgage products along with the securities supposedly backed by them.
• Glass-Steagall is restored, in full, and all the firms that can't exist under it are broken up. Period.
• The insider-trading that has become blatant and outrageous is prosecuted where illegal and where not, is made illegal and then prosecuted, with the focus being on the size of the scam. This includes obvious circumstances such as August 2007 (Bernanke's phone logs were FOIA'd) where trading patterns made clear that "certain someones" had foreknowledge of the discount rate cut along with Congresspeople who were briefed on the TARP and within hours or days made significant stock trades. Today if you're Martha Stewart you're prosecuted where if you make millions in an hour by exploiting government information "leaks" the SEC and FBI look the other way.
• The Government withdraws all of its backstopping of financial firms who created this mess. All of it. If you're a bank or other firm and did something imprudent, you fail. Period. This is true whether you're a small regional bank (as is happening now; 5 in the last week) or a big behemoth like Citibank or Bank Of America. No "special deals", no "special guarantees", nothing of the kind. If the government wishes to avoid "systemic risk" then the government regulators can do their damn job.
• The Fed disgorges all of its improperly-acquired MBS and other related securities. If it doesn't have a full-faith-and-credit guarantee and was bought, it is disgorged - period.
• The Fed agrees to full annual audits without exception.
• Those people inside government who conspired with certain bankers to cook the books, along with those in the banks who did so, go to jail. Our own Office of The Inspector General in the government has confirmed that there was an active conspiracy to break the law within the OTS, but not one indictment has been issued.
• Those who committed fraud in the creation of this economic mess, whether they be mortgage lenders, those who packaged up securities while intentionally omitting credit information, those in the real estate industry to pressed for appraisal fraud and others are investigated, prosecuted and if convicted jailed. All of them.
• Losses are born by those who made bad decisions, not the taxpayer generally. Those who made good decisions get to reap the benefits, while those who made bad decisions eat the losses. No exceptions.
• Government cuts the annual budget deficit to zero. If government wants to blow the money it has to have the money. If they can't raise the money they don't spend it. It is time to live within our means and hold government to account for its profligate spending along with promises of "benefits" they know they cannot actually deliver down the road such as Medicare Part D.

Until then the position of those who wish to join is simple: No non-essential purchases of anything are made. Period.
What's an essential purchase? Here's the list:

• Enough food to eat at home. No more eating out.
• Rent and utilities.
• Essential medical services.
• Enough fuel to get to and from work.

In addition any "excess withholding" is stopped; if you are getting a big fat refund from the IRS every year you are loaning the government your money at zero interest until April. Stop that; its stupid. Change your W4 so you get exactly nothing back or owe a tiny amount; if you pay estimates pay only that which you must and not one dime more.
Note that it is unlawful to use your W4 to intentionally under-withhold, but you are in fact not obligated to pay one more dime in tax than you actually owe. There is nothing wrong with adjusting withholding to match (as close as you reasonably can) your actual tax obligation.
Put the money you save (it will be a lot!) into a non-TARP Credit Union if you have one available to you, or a non-TARP local bank if you do not. Spend none of it.
If we pledge to do this and not resume normal spending habits on wants as opposed to needs until and unless the budget is balanced, the bailouts are rolled back and those who committed fraud go to prison the government will be forced to act as they will simply run out of money.
They cannot force you to buy that new iPOD or flatscreen TV, or to take an expensive vacation.
Consumer spending is 70% of the economy.
This is a consumer weapon that is more powerful than any other means of peaceful protest. Strangling the government and private business' ability to steal from us all by cutting off their revenue will force reform, and has the additional benefit of being exactly what this nation needs to provide a strong capital formation base when that reform is complete.
If businesses want my money they can join in the chorus of voices demanding that government stop the looting and start prosecuting.
Will any of us be perfect in this endeavor? No. There will be the occasional indulgence I'm sure no matter who we are. But I'm willing to bet we can shrink consumption - each and every one of us - by at least 10% without any real personal pain at all, and if we do so it will send an indelible message to those in government and business: cut that crap out!
July 4th is Independence Day.
Let's make it a day of freedom from the banksters and government financial marauders.
Who's with me?

[Mothernature]

We are savings as much as possible in emergency savings, for another car, and a home. We'll spend the remainder of this year and a part of the next resolving dental issues.

Our most immediate need is to build our emergency savings and gift card stash. I have monthly medicine expenses and five necessary doctor appointments per year.

Unfortunately, due to my illness, our stockpile has dwindled. We eat a specialized, very expensive diet.

The bottom line is we have to relocate. Remaining here will not assist with our long term savings goals.

[ScrappyDoo]

[joshmamabear]

All that we've talked about in the past have become reality and the worst has not yet come Analysts are saying mid 2012 to 2013 is when we will really feel the most difficult times. I've always thought difficult times have started for the majority who lost their jobs years ago, I cannot even imagine how "harder" it will be in 2012 to 2013. If lawmakers decide on decreasing gov't freebies to cut huge budget deficits, it will definitely be very challenging to those who can hardly make it for those getting EBTs and many will surely be denied . With skyrocketing food prices, I'm not sure if couponing will make a substantial difference with stricter store policies these days.

Its hard to tighten belts when you can hardly breath anymore, but the worst is just around the corner so we all have to be prepared.

[ScrappyDoo]

All that we've talked about in the past have become reality and the worst has not yet come Analysts are saying mid 2012 to 2013 is when we will really feel the most difficult times. I've always thought difficult times have started for the majority who lost their jobs years ago, I cannot even imagine how "harder" it will be in 2012 to 2013. If lawmakers decide on decreasing gov't freebies to cut huge budget deficits, it will definitely be very challenging to those who can hardly make it for those getting EBTs and many will surely be denied . With skyrocketing food prices, I'm not sure if couponing will make a substantial difference with stricter store policies these days.

Its hard to tighten belts when you can hardly breath anymore, but the worst is just around the corner so we all have to be prepared.

I just read an article saying the same thing. I am beginning to think all of those people who were preaching financial armageddon a year ago might be onto something

[joshmamabear]

Yes, I just saw a video where the speaker was saying we will default on our loans sometime soon. NO specific date mentioned but with all the writings on the wall, I will not be surprised if it becomes reality. All past discussions of the speaker have become reality so he is credible.

We need more faith now, if that is all we can hang on to

While I read people getting gun licenses, I honestly don't think it'll work for everyone

[KmmCo]

I agree with you that it is not over with yet!

We were just talking yesterday at work about our generation (baby boomers) being in debt so much and how it will affect the next generation when we die while owing so much money! I think our economic problems will not be over for decades to come.

I also think that a lot of people still are not "tightening their belts" as much as they should. Even though my coworkers all have steady jobs - may of them have way to much debt and overspend tremendously (like eating lunch out everyday) when it really isn't necessary. Another lady and I try to coach them in frugal living every once in a while but it seems to fall mostly of deaf ears.

As far as my plans for saving $:
use public transportation as much as possible to save gas and wear and tear on the vehicles, cutting back on vacation and entertainment costs (like going on a hike instead of going to the movies), watching that we don't waste energy and water around the house, and working on the debt to get the interest monkey off my back.

My grocery costs have always been pretty low but I think a bigger garden next year might be in the works and I have been trying new frugal recipes using less expensive meats and less processed foods. Eating out is a treat maybe every two or three months - not something we do on a regular basis at all.

[joshmamabear]

I also think that a lot of people still are not "tightening their belts" as much as they should.

This is so true, I think it is happening everywhere when you see people in a frenzy for wide screen TVs, iPads, laptops on BF day sale! And people were not grabbing 1 of each but several of them! I saw several videos online on the buying sprees nationwide.

I asked DH if we were the only ones who knew what's going to happen because how can such spending sprees be happening if money is tight and people say they're broke? ALL the major stores were packed, restaurants were packed, even coupon boards discussions were talking about their online orders,

I asked myself, where is $$$ coming from? DH said, people must be buying on credit. He said if CCs can no longer be used, then we will know those who have actual cash. Otherwise, as long as people can swipe plastic money w/o thinking of where to get the payments later, these buying sprees will go on and on.

[ScrappyDoo]

This is so true, I think it is happening everywhere when you see people in a frenzy for wide screen TVs, iPads, laptops on BF day sale! And people were not grabbing 1 of each but several of them! I saw several videos online on the buying sprees nationwide.

I asked DH if we were the only ones who knew what's going to happen because how can such spending sprees be happening if money is tight and people say they're broke? ALL the major stores were packed, restaurants were packed, even coupon boards discussions were talking about their online orders,

I asked myself, where is $$$ coming from? DH said, people must be buying on credit. He said if CCs can no longer be used, then we will know those who have actual cash. Otherwise, as long as people can swipe plastic money w/o thinking of where to get the payments later, these buying sprees will go on and on.

You are lucky that your DH is on board. Mine still is of the opinion that the people who talk about financial gloom and doom are nutjobs. I am afraid he will be sadly dissapointed when he finds out they were right.