Ok I'm kid of an economy newb could someone explain to me how the recession stops?
Like, I get how it starts and I've seen it around me.
ie. My uncle runs a trucking business, the guy that gives him most of his work and tells him no more work for awhile. He asks why and the guy says, "Because the recession is coming." My uncle told him he was just making it worse.
ie. Some politician mentioned health care cuts (IDIOTS), then a nurse at work says, "Shit, well I'm not going to be buying that new widescreen Tv then". Also I'm quickly finding a place that has cheaper rent so that if I do lose my job I can afford my rent with some cooking or labor job.
So this all seems like a never-ending downward cycle that causes money to stop moving and people to stop buying things and so people don't get paid and businesses fail and can't employ people and so those people don't have money to spend and on and on.
How does this process get reversed?
Somehow, you have to return people's/businesses' faith in the economy to get them spending again.
EDIT: Hunter said it better.
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MrMonroepassed outon the floor nowRegistered Userregular
edited February 2009
The other issue is that even if we can drive up demand (the point of the stimulus bill), the banks are so fucked right now that they aren't lending to anyone. Businesses that need cash to fulfill the demand that is out there can't get it, so they lose the business and the people who want what those businesses sell just go without.
The other issue is that even if we can drive up demand (the point of the stimulus bill), the banks are so fucked right now that they aren't lending to anyone. Businesses that need cash to fulfill the demand that is out there can't get it, so they lose the business and the people who want what those businesses sell just go without.
A good amount of the bank stimulus package was specifically ear marked for lending to fuel business style loans. The banks didn't do that. Supposedly the Obama administration is going to call them on that, but we'll see.
I just keep telling myself how much my 401k is going to go up once the market recovers because I'm still contributing the same amount every month but I'm buying way more volume with it right now.
HunterChemist with a heart of AuRegistered Userregular
edited February 2009
My 401K is getting ass raped. Luckily we younger types will see a bounce back. Now if I was Druhim, I would be crying. That is if I wasn't suffering from Alzheimer's disease and shitting my depends diapers.
WeaverWho are you?What do you want?Registered Userregular
edited February 2009
I started my 401a in January so I've only paid into it a few times but I've paid the max that my company matches so I'm not losing much money at all but am raking in shares.
sponoMining for Nose DiamondsBooger CoveRegistered Userregular
edited February 2009
my company doesn't match 401k contributions so I can't decide if I should start one or just go straight into a roth ira
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HunterChemist with a heart of AuRegistered Userregular
edited February 2009
I lost over 40k in my 401K for the last quarter. Now when the market goes back up yadda yadda. But when you see a number like that, you go WTF out loud. I did.
I contributed to my 401k for about a month. With the money that came out for that, I didn't have enough money for gasoline that week, so I stopped contributing. I did lose almost half the money I put in there though. I was in the "balanced" portfolio too.
I'm quitting in June and planning to move everything over to an IRA, or I'll take out what I have in there (I need to talk with our company accountant and see if there's a penalty if you take it out for education expenses.)
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HunterChemist with a heart of AuRegistered Userregular
FandyienBut Otto, what about us? Registered Userregular
edited February 2009
The only thing I've noticed is the price of cigarettes. They went from $3.50 to $3.75 to $3.90, and now those motherfuckers are $4.10 a pack. Fuck that.
I lost over 40k in my 401K for the last quarter. Now when the market goes back up yadda yadda. But when you see a number like that, you go WTF out loud. I did.
I lost over 40k in my 401K for the last quarter. Now when the market goes back up yadda yadda. But when you see a number like that, you go WTF out loud. I did.
I'm quitting in June and planning to move everything over to an IRA, or I'll take out what I have in there (I need to talk with our company accountant and see if there's a penalty if you take it out for education expenses.)
The Roth IRA is probably the best choice at this moment in time.
Actually, the Roth is like the best thing ever.
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HunterChemist with a heart of AuRegistered Userregular
I'm quitting in June and planning to move everything over to an IRA, or I'll take out what I have in there (I need to talk with our company accountant and see if there's a penalty if you take it out for education expenses.)
The Roth IRA is probably the best choice at this moment in time.
Actually, the Roth is like the best thing ever.
Not if you get company match on a 401K. I'd lose 4% of my annual salary in free matched funds.
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Somehow, you have to return people's/businesses' faith in the economy to get them spending again.
EDIT: Hunter said it better.
I made a TD for iphone and windows phone!
Sort of, yes.
A good amount of the bank stimulus package was specifically ear marked for lending to fuel business style loans. The banks didn't do that. Supposedly the Obama administration is going to call them on that, but we'll see.
Secret Satan 2013 Wishlist
those guns are for teaching children how to handle firearms. Of course they are small.
Yes... when it recovers...
(please recover)
Secret Satan 2013 Wishlist
love how true this is
Net change: -$6000
Secret Satan 2013 Wishlist
also love how jaded you are already
The sleek looking Walther P99 chambered in .40 S&W says yes.
Secret Satan 2013 Wishlist
I remember talking to my dad about a month ago and he looked at his.
Said he had lost approx. 100k so far.
and he just went into retirement two years ago.
So glad I'm a young person with a job and not gonna worry about this.
PARKER, YOU'RE FIRED! <-- My comic book podcast! Satan look here!
KEEP GOING
tfs: member of MLC (my li'l commies)
Well at least you still have close to 361k left.
Hey I got one of those. We can be twin looters!
Secret Satan 2013 Wishlist
The Roth IRA is probably the best choice at this moment in time.
Actually, the Roth is like the best thing ever.
Coran Attack!
Not if you get company match on a 401K. I'd lose 4% of my annual salary in free matched funds.
Secret Satan 2013 Wishlist
Yeah, the soldiers here are laughing at him.