Great Depression, and that was extremely painful. For several good links and a quick overview of what's transpiring, check out these links:
On the Whitney article, pay attention to the section on banking.
As discussed in the above links, this financial meltdown is taking shape right now, and unless the Fed gov't acts to intervene, it seems impossible to stop. Unstopped, it will most likely blow up this year, and as the above articles explain, could easily happen quite soon, maybe days.
If it does unfold, it will happen very fast. In 2000, the Artgentina economy collapsed, and it happened virtually overnight, but literally took place in a few days.
What does this mean for us? It means that there is a serious risk of a complete financial meltdown, massive unemployment, banks closing, almost unimaginable repercussions that one may have little or no time to prepare for.
What should one do? Its hard to assign a risk factor to this, but it is grave enough and immediate enough that one should do something now, not two days from now, bc if it happens, it will happen quickly and you want to be as prepared as possible now, not next week.
I rarely recommend one take any debt, but, I feel concerned enough about this that one should buy enough food for their family and have it on hand for at least six months, even if this means putting it on the credit card. If we get lucky and get a gov't hand out as they are proposing, pay off the food bill with that, but don't wait for the hand out before taking action, we may not have six months before this goes belly up. I hope we do, and I hope it doesn't happen, but I see enough warning signs at work (lawyer working on defaulting subdivisions) that when I read links like the above, I take it very seriously.
There is another thread which talks about what to do if the gov't gives us all some money. I suggested buying food. Here's my post as to why:
If you aren't worried about the credit crisis, the very fact that the gov't is getting ready to give every frickin one of us money for nothing should be a flashing red light, with sirens sounding. THIS IS A RED ALERT! There is no bigger sign of a crisis than the Romans throwing bread out to the citizens. TAKE ACTION NOW!
I personally always look for trigger points to make key decisions, the gov't throwing out money to prevent a crisis is one of them. A trigger point is that point in planning that if a pre-condition happens, you take a preplanned action. This is a trigger point. When the government passes out free money bc of a admitted financial crisis, you are an absolute fool if you don't take it seriously. This is not the tech bubble of 2001 (which was caused by overblown tech stock prices and didn't affect banks). This is a financial crisis where the world's largest banks may literally go bankrupt - this effects everyone!! The fact that experts worldwide reckon this as comparable to the Great Depression should be scary enough, and now that the gov't is discarding Adam Smith and literally giving money away for nothing to prevent a financial collapse from happening should scare the crap out of you. Take this seriously.
The government is getting ready to give everyone a bonus, who knows how much. Spend it wisely by investing in food. If you have credit card debts, car payments etc, do not use this money to pay on those regular bills, do not buy anything like a t.v. etc., do not take a vacation with it. Make this money work for you and BUY SOME FOOD! Especially if you have kids or anyone depending on you. This is a real opportunity to get ahead in the preparation game, use it wisely. Food is much more important than matches, solar, bullets, any other preparation. Food is the base level of survival, everything else is secondary! It is the reason why we work, EVERYTHING ELSE IS SECONDARY!
Buy food for the following reasons:
(1) I see people lose their jobs in the best of environments, and when they do, they don't have money to buy groceries! Don't let that happen to you. Most jobs will likely be in jeopardy over the next 2 years. Unless you are a gov't employee or working for a utility, a doctor or a nurse, your job security isn't very good. Buy food now, bc you may not have a monthly income to buy it later;
(2) Food prices are continually going up, call it stagflation or whatever. They will not be going down in the foreseeable future. Buy food now, bc food prices will never be cheaper. Buy it now while its available, at the best prices, and while you have a windfall to buy it;
(3) Even if you file for bankruptcy someday, they are not going to take the food in your pantry; its never happened. Food is not personal property which can be seized. Anything else you own can be seized. Buy food that you can keep and take it with you no matter what happens. You will not regret it.
(4) Even if you lose everything and were left in a tent city, if you have a sleeping bag and FOOD, you will be okay. If you have food, what money you do have coming in can be used to rebuild your life and buy other things. FOOD is security in the worse of times.
(5) If we get $600 or more gov't play money, you can buy a lot of food with this. Use every penny on food. A 50lb bag of rice is about $20, same for a 50lb bag of beans. Peanut butter, honey, canned goods, all will last a long time and are fairly cheap. Buy it and sock it away. Hold it for two years as a security, if nothing has happened by then, start eating it, no big deal.
(6) Food is the best investment right now, the only thing guaranteed to hold its value and, if the worse does happen, may be the only thing of value.
Do not waste this opportunity. If you don't have a store of food, get it now while you can! Don't waste this money by sending it to the credit card company or anyone else. Pay yourself with it by investing it in you, literally, and your family. You will not regret it.
The only thing you cannot do without in your life is food. This is a freebee, use it wisely.
If you already have food for six months, then make sure you have a good warm sleeping bag for you and all your immediate family. I picked up two today at a surplus store for $60 each. Sleeping bags are cheap, last a lifetime, and keep you warm even if you can't pay your utilities or are sleeping in some tent city bc you lose your job and your house. They are lightweight and easy to transport. They are your mobile shelter. If you don't have a good sleeping bag, I would also recommend getting one now, even if you have to buy it with a credit card.
This purpose of this thread is not to debate the credit crisis, but to discuss and share ideas as to what people can do right now to make their situation better should they lose their job, home, etc.
I would also recommend learning about your local food shelters, where they are located, local unemployment office, etc. Start educating yourself now by reading about local support services for the poor and physically finding out where they are located.
