When I see news of financial crises and economic downturns, and then see neighbors, friends, family members, students getting themselves worked up in a lather over it, I want to ask: How has this affected you directly? I'm not saying there aren't direct effects, just that I tend to think that much of the concern comes from overexposure and hype rather than direct impacts on day-to-day living. So I'll pose the question here:
How has the financial 'crisis' affected you directly*?
*And my retirement/investment account is lower doesn't count unless retirement/withdrawal is imminent.
It has put my current contract at risk. I write software used by car dealers. Those dealers report that it is harder to qualify buyers for financing. That could shrink their revenues and their ability to pay (indirectly) for my services.
... sometimes though a more competitive environment makes it possible to sell competitive-advantage solutions.
Posted by: odograph | October 02, 2008 at 09:01 AM
I have to replace my furnace (it's forty years old and the fan motor blew when I turned it on this year). The rise in commodity prices, and an increased demand for gas heating (we heat with natural gas) drove up the prices of new units. Normally, I would borrow against the equity in my house to pay for this, but I sold some stock instead, given the instability in the markets.
Posted by: David Pinto | October 02, 2008 at 09:04 AM
I have a CREF variable annuity and the monthly checks have gone down since they are tied to the price of the shares.
I've also seen a rise in prices, although this has been going on for some time. The local diners now charge $9 for a lunch salad plate up from $7 a year or so ago. One is charging $14 for the shrimp salad version. That's pretty steep for a suburban diner with no culinary pretensions.
I expect my real estate taxes to go up 5% (the legal limit) for the 2010 cycle - the 2009 has already been set. This will be a combination of higher service costs, higher borrowing costs and a decline in the value of the tax base.
Posted by: robertdfeinman | October 02, 2008 at 09:48 AM
It's difficult to know where the line is, between a recession and a credit crisis. My stock funds are down. I expected that because I thought the market was bubbled, and that we were heading into a recession. I didn't expect my bond funds to fall though ... at least not because debt becomes untrusted or because Wall Street must deleverage ... I saw interest rate risk of course.
... my stocks/bonds are down about 6% YTD
Posted by: odograph | October 02, 2008 at 10:05 AM
It has had no affect.
Posted by: Kurt | October 02, 2008 at 10:16 AM
http://www.env-econ.net/2008/09/phd-comics-on-t.html
Posted by: John Whitehead | October 02, 2008 at 10:58 AM
My wife and I are finally about ready to start shopping for a house, after years of renting. The meltdown affects me directly, by making me even more smug than usual. If Congress doesn't pass the bailout this time around, and home prices plummet even further as a result, I could become completely insufferable.
Posted by: Alan Dove | October 02, 2008 at 04:27 PM
Somewhat easier to get construction workers to do remodel jobs (although I do most myself)
Posted by: dancing carpenter | October 02, 2008 at 05:46 PM
I work in a commodities business and I am really worried. Our projections are for a severe pull back in demand which are starting to realize Q4. Despite significant price reductions demand is still falling.
I can't trace commodities demand reduction to the financial sector downturn directly, I can only contrast demand from 1H 08 to 2H 08, which is the worst reduction I have ever seen.
Posted by: Mike | October 04, 2008 at 08:56 AM