How are you dealing with the financial crisis?

[I-75]

How are you dealing with the financial crisis? What are your experiences, what are you doing to keep safe from its affects?

[billgoldberg]

How are you dealing with the financial crisis? What are your experiences, what are you doing to keep safe from its affects?

Nothing, it has no impact on me atm.

[KiwiNZ]

The best way to shield yourself is Don't panic.
Reduce debt in a sensible and sustainable way. Ensure your investments are in a safe place. Remember the higher the return the greater the risk

The average person will not be greatly affected except for higher prices and higher rates of unemployment. On the other hand if you have a mortgage you may well benefit from lower interest rates.

Your house value may drop in the short term but that is only an issue if you are selling

[Thelasko]

Buying stocks.

Seriously, I think the market hit bottom with the DOW at 8,000. If you want to make money, you have to learn to do the opposite of what everyone else is doing.

By "everyone else" I mean the average person on the street. When my mom says it's a good time to invest in real estate (she knows nothing about investing), I sell real estate. When my barber tells me the stock market is crashing, I buy stocks. When Google is making headlines with it's fantastic gains, it's time to sell Google stock (assuming you have some, I'm not a fan of shorting).

When really good investors, like Warren Buffet, do something, I pay attention, but I may or may not follow.

[blazercist]

Uhm, inflation? There is really nothing you can do unless you have a place to stockpile raw materials, oil and precious metals. Those who are not affected currently will feel it next year when the price of your morning coffee is $100 because the money you have isn't worth the paper it's printed on.

[billgoldberg]

Uhm, inflation? There is really nothing you can do unless you have a place to stockpile raw materials, oil and precious metals. Those who are not affected currently will feel it next year when the price of your morning coffee is $100 because the money you have isn't worth the paper it's printed on.

Most countries (include mine) have good ways to prevent the inflation from hitting people to hard.

[Northsider]

How are you dealing with the financial crisis?
By spending.

[blazercist]

billgoldberg, I read your posts all over the forums and I respect your opinions, but I fail to see how inflation can be avoided at this point. If you have a lot of cash in the bank you are good so long as your bank doesn't collapse and you can't withdraw the money. Insured deposits that are lost in bank collapses take almost a decade to recoup, incase you were planning to site something like FDIC insurance or whatever the equivalent is in your country. Even if your country's currency doesn't lose value the price of products will rise because many many many of those products are imported from other countries. Unemployment is equivalent to inflation in the sense that even if your currency doesn't lose value no one will have currency to use. There is no avoiding inflation, only if your country is entirely insulated from the global economy and is completely self-sufficient. I'm not aware of any country that is in such a situation. If you know of one please let me know and I will move there promptly.

The reason I said raw materials, precious metals and oil is because these things are not affected by the value of money. If someone needs oil to heat their home in the winter they will pay anything in order to not freeze to death... hope you understand my explanation and the reason for my contention to your comment.

[Dixon Bainbridge]

How are you dealing with the financial crisis? What are your experiences, what are you doing to keep safe from its affects?

No impact at all day to day. I don't know what all the fuss is about to be honest.

[MasterNetra]

No major impact i was broke and poor before it too. :P

[Ms_Angel_D]

Currently Our family is Dealing with less money, as Workers at Boeing Have chosen this time to go on strike. My Husbands company sub-contracts with Boeing He is an aerospace machinist. Due to the strike his hours at work have been cut from 40 to 32 and if things continue and these guys don't back to work soon, he could have another day cut off his work week. We have been cutting corners everywhere. From using as little gas as possible, to cutting way back on luxuries, such as cable and mobile phones. It's not easy when prices everywhere are going up and we both can't work due to the fact that I'm disabled. I mean really what can you do when you already live pay-check to pay-check except cross your fingers and hope for the best....

[Thelasko]

The reason I said raw materials, precious metals and oil is because these things are not affected by the value of money. If someone needs oil to heat their home in the winter they will pay anything in order to not freeze to death... hope you understand my explanation and the reason for my contention to your comment.
You haven't looked at the price of oil recently, have you?

[crimesaucer]

I'm laughing at it..... I guess I'll be seeing you rich folks at the soup kitchen..... better get there early if you want seconds. (gotta get back in line.... and no cuts.)

[Erdaron]

Actually, since I'm a broke student with a bit of debt, I'm coming out ahead - between low interest rates and inflation, my debts are easier to deal with. The only thing that worries me is that I'll graduate next year some time - probably the worst time to enter the job market.

Other than that, not much. My dad's retirement fund has taken quite a beating, though. Fortunately, he is not planning to retire any time soon.

[handy]

I have my car in town for sale & yesterday I started the process of getting a grid feed solar system installed on the roof of our house. Our government is offering a subsidy on the cost of up to $8000-, I have ordered a 1kW system which has an inverter that will cope with 2kW, so in the future when I can afford it I can double the capacity. This is going to cost me about $5000- for the 1kw system installed, that is after the $8000- government input.

I suspect that as the financial crisis continues our government will pull the plug on this incentive to get the population to use environmentally friendly power.

[TBOL3]

You guys are backwards, were not going into inflation, but a depression. The most obvious example at the moment is gas prices, which are dropping. Sure, it may be nice now, but it won't be soon, when the market stops, and theirs very little to sell and buy.

However, it is POSSIBLE that we go into an inflation. If the stupid government keeps on handing out 'free' money. Then we will have inflation.

(This is entirely based on my perception of the USA, it may be wrong, and other countries may also be in slightly different situations).

[dizzy1kenobi]

Wait, let me check. Yup, broke as ever.

[geekygirl]

Financial Crisis?

Depends on what sort of work you have I guess. I am fortunate I am in an industry that has a LOT of work and money that is not going to be affected by any economic downturn in the next 5-10 years, although here in Australia we are not doing it a tough as other countries at the moment.

[Lorelei-]

How are you dealing with the financial crisis? What are your experiences, what are you doing to keep safe from its affects?

Minimising spending. Stay realistic. Selling large quantities of my possession on Ebay as I no longer use them.

[blazercist]

You haven't looked at the price of oil recently, have you?

I know oil has been dropping but is still at all time highs when you compare with the last 100 years. Also you have to remember that demand is slowing because of the recession but when inflation hits the price of commodities will rapidly increase. Plus now OPEC is going to cut production, in two increments so you'll see the price rebound somewhat in the coming months.

[earthpigg]

i work for uncle sam. my raise this year will be a few % lower than it is most years... 3-4% instead of 5-6%.

i have no debt - ive never taken out a loan except to build credit for the hell of it... when i want something, i save up and then i buy it

the vast majority of my savings is in gov't bonds.


thank you for paying your taxes, America. :)

[gn2]

Your house value may drop in the short term but that is only an issue if you are selling

If you are trading up to a bigger house or a better area, it can be an advantage to have prices fall, because the amount of money extra to find is reduced.

[S0VERE1GN]

Waiting for the housing market to hit rock bottommmmmm.


then ill pick up a house or two in the area and flip em in about a year :-p

widespread panic=heavy profits for the wise.

keep up the good work CNN :confused:

[gn2]

I have my car in town for sale & yesterday I started the process of getting a grid feed solar system installed on the roof of our house. Our government is offering a subsidy on the cost of up to $8000-, I have ordered a 1kW system which has an inverter that will cope with 2kW, so in the future when I can afford it I can double the capacity. This is going to cost me about $5000- for the 1kw system installed, that is after the $8000- government input.

I suspect that as the financial crisis continues our government will pull the plug on this incentive to get the population to use environmentally friendly power.

Have you heard of air source heat pumps (http://en.wikipedia.org/wiki/Air_source_heat_pumps) or ground source heat pumps (http://www.earthtoair.com.au/index.php?page=how-it-works)?

[handy]

Have you heard of air source heat pumps (http://en.wikipedia.org/wiki/Air_source_heat_pumps) or ground source heat pumps (http://www.earthtoair.com.au/index.php?page=how-it-works)?

I was aware of ground source, but not the air sourced.

Thanks for the links.

[linux2.6.24-19-generic]

I'm digging a 40 foot concrete bomb shelter for starters. I have 83 55-gallon drums full of filtered water, 3 AR-15 assault rifles, 6000 rounds of ammo, all the aluminum bits and parts I can find (barter system when money is no good), a washboard for cleaning clothes, a stationary bicycle converted into a generator, and some other stuff I'm not willing to disclose at this moment.

That should get me through the initial sting until reinforcements arrive.

[geekygirl]

surely things cannot be that bad....lol

[I-75]

I'm digging a 40 foot concrete bomb shelter for starters. I have 83 55-gallon drums full of filtered water, 3 AR-15 assault rifles, 6000 rounds of ammo, all the aluminum bits and parts I can find (barter system when money is no good), a washboard for cleaning clothes, a stationary bicycle converted into a generator, and some other stuff I'm not willing to disclose at this moment.

That should get me through the initial sting until reinforcements arrive.

Coffee, cigarettes and toilet paper are great barter items. Silver might be be the best bargain out there now. I picked up three Morgan silver dollars at a flea market for $13 each. On E-Bay they are around $15 each +/-. Stock up on gas too, I think gas is about $2.35 a gallon in Ohio now and of course use STABIL gas preservative. Solar panels are good survival items as long as the EMP doesn't zap them. You can dehydrate your own food and use those vacuum pack sealers for long term storage. You are not alone....

[aeiah]

im just keeping my fingers crossed that my bank goes bust so i dont have to pay back all that money. in the mean time ive mostly been subsisting off ketchup soup and weak lemon drink.

[ronnielsen1]

No impact at all day to day. I don't know what all the fuss is about to be honest.
The fuss is about there's a lot of jobs that used to be out there that aren't now. I always find work and I'm having a very hard time trying to stay busy. I'm an electrician (about 14 years now) and I know a lot of painters, framers, electricians, heating and cooling. sheetrockers, real estate professionals that are OUT OF WORK. I'm glad it's not affecting you. It IS affecting millions of other people.

surely things cannot be that bad....lol
It is.
I'm dealing with it by getting very little work

[Ms_Angel_D]

Alot of baby boomers are gonna be retiring in the next few years, or sad to say but true passing away, so the job market will be opening back up, here in the staes, it's just a matter of weathering through until then I suppose.

[Sorivenul]

Paying off bank loans with student reimbursements from grants. Awesome. Wishing I had money to begin with to invest in the market at this point. I'd rather be buying stocks right now than pawning old electronics for food for my family.

[geekygirl]

Ouch sorry to hear that ronnielsen1. :(

Ironic thing is though in Australia tradespeople like plumbers and electricians have a LOT of work due to a lack of tradespeople. My brother is also an electrician (just over 15 years now) and still has to decline a lot of work because he has more than enough, he also has two apprentices working for him.

Its the same thing with the aviation industry over here, there are currently more jobs than people looking for them, and companies are looking overseas to recruit people. My trade was listed by our government as in critical manpower shortage late last year.

Our biggest issue still imo, despite the commodities price falling, is that the mining industry are still looking for a lot of people and can offer the amounts that people find very attractive, therefore people leave their once 'regular' jobs and go and work in the mines. I am thinking of doing just that myself.

I live in a town where there are a lot of miners and a large amount of defence aviation work, and the growth here makes it very hard to believe right now that there is any sort of financial problems elsewhere in the world. Yet at the same time its a bit worrying as I wonder when the bubble will burst for people like me as well...

[ronnielsen1]

My trade was listed by our government as in critical manpower shortage late last year.
Yeah, we saw that here and got a good laugh. I know there's plenty of work in certain places (Texas and Louisiana for two) but not here and my sister who lives in mid north California said construction really crapped out there too. So, hopefully it changes and gets better instead of spreading. I had 3 people helping me about a year ago but nobody is building anything now here because nobody is buying. It's not the first slowdown I've seen but it's been the longest so far.

[Thelasko]

Its the same thing with the aviation industry over here, there are currently more jobs than people looking for them, and companies are looking overseas to recruit people. My trade was listed by our government as in critical manpower shortage late last year.

A lot of computer companies were doing that in the US. If there is such a high demand for certain skills you should notice an increase in wages for those jobs. Companies in the US informed the government of a shortage in workers, so they were allowed to recruit overseas, It turned out that those companies were lying (http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db2008108_844949.htm?chan=top+news_top+news+index+-+temp_technology) to avoid paying higher wages to workers.

[Liviu-Theodor]

:!: In a radio show, I heard some ecomomysts saying that any crisis can be turned into advantages. If there are any in this forum, please give us some tips.

[Prefix100]

No effect on me either - I never have money anyway. :D

[Thelasko]

:!: In a radio show, I heard some ecomomysts saying that any crisis can be turned into advantages. If there are any in this forum, please give us some tips.

A time of crisis is a good time to invest, among other things. Although, I am a little concerned about the market at this very moment (today October 24, 2008) as it looks like the market will take a tremendous drop today.

Hold on to your butts!

[DrMega]

How are you dealing with the financial crisis? What are your experiences, what are you doing to keep safe from its affects?

I'm dealing with it by refusing to add to the hysteria that seems to be sweeping through the world and aggravating the problem. I have made no changes in my life, or in my plans for the future (other than deciding to stay in my current job rather than looking for another).

I bet there are stock/share traders rubbing their hands excitedly, loving the fact that mass hysteria is driving down prices so that they can buy them all up when the prices hit rock bottom before the start to recover again.

[ice60]

we don't have much of a financial crisis in the uk because we are uniquely placed to deal with it, that's what gordon brown thinks anyway lol. and we don't have boom and bust either.

http://uk.youtube.com/watch?v=FUY9ewD1Jls

:lol:

[Thelasko]

we don't have much of a financial crisis in the uk because we are uniquely placed to deal with it, that's what gordon brown thinks anyway lol. and we don't have boom and bust either.

http://uk.youtube.com/watch?v=FUY9ewD1Jls

:lol:

He obviously doesn't keep his money at Northern Rock. (http://news.bbc.co.uk/1/hi/uk_politics/7258492.stm)

[DrMega]

we don't have much of a financial crisis in the uk because we are uniquely placed to deal with it, that's what gordon brown thinks anyway lol. and we don't have boom and bust either.

http://uk.youtube.com/watch?v=FUY9ewD1Jls

:lol:


I find it funny that the man who was chancellor and then prime minister while house prices went crazy and became unaffordable and now are collapsing, is the same man that tells us we can trust him to be the best person to get us through the economic crisis.

[ice60]

He obviously doesn't keep his money at Northern Rock. (http://news.bbc.co.uk/1/hi/uk_politics/7258492.stm)

lol, it's not just Northern Rock, most of the big banks went bust here, and lots of british companies invested with icelandic banks too and the whole of iceland went bust! the uk is supposed to be in the worst position on any of the g8 or g7 countries, or whatever it is.

i was talking to my dad the other day and i said something like had he lost any money and i think he said no, then he asked if i'd lost any money and we both laughed because i have no money to lose lol. i thought that was really funny, i suppose you had to be there lol.

[DrMega]

lol, it's not just Northern Rock, most of the big banks went bust here

No they haven't. We've still got all of our banks. Northern Rock, Halifax and a couple of others have been "bailed out" but they are still in business.

Lehman brothers closed, but that's not a British bank (although that won't come as much comfort to the people who worked there).

[ice60]

No they haven't. We've still got all of our banks. Northern Rock, Halifax and a couple of others have been "bailed out" but they are still in business.

Lehman brothers closed, but that's not a British bank (although that won't come as much comfort to the people who worked there).

i thought they went bust and then the government bailed them out with 37 billion pounds?? 3 of the countries top 4 banks needed the money and a 4th said it could find the money itself. it was something close to that anyway. i admit it really doesn't affect me much at all so i'm not paying much attention to it.

edit:
http://news.bbc.co.uk/1/hi/business/7666570.stm

if that's not going bust then i'm not sure what bust means, sorry!

edit.
(i know what bust means, i ment 'going bust' above lol)

[dasunst3r]

I'm decreasing my reliance on the credit market, namely in the form of not using credit cards and using cash (or check). That's "money on hand" immediately for the company, no transaction fee from Visa or Mastercard, etc.

[DrMega]

i thought they went bust and then the government bailed them out with 37 billion pounds?? 3 of the countries top 4 banks needed the money and a 4th said it could find the money itself. it was something close to that anyway. i admit it really doesn't affect me much at all so i'm not paying much attention to it.

edit:
http://news.bbc.co.uk/1/hi/business/7666570.stm

if that's not going bust then i'm not sure what bust means, sorry!

They were in dire straits, and some may have gone bust if they hadn't been bailed out. Northern Rock was doomed and would certainly have gone had it not been saved.

Some other banks that were struggling but generally surviving received a cash injection to help restart the flow of money between banks, as it was when banks stopped lending to each other that the whole thing went belly up.

One part that I don't understand is this: Where did the 37 billion quid come from? I'm sure the government didn't have a stash of used £20 notes in the cellar, so they must have had the money in one or more banks. If that's the case then as the banks are going through very turbulent times, that 37 billion may end up worthless.

[ice60]

They were in dire straits, and some may have gone bust if they hadn't been bailed out. Northern Rock was doomed and would certainly have gone had it not been saved.

Some other banks that were struggling but generally surviving received a cash injection to help restart the flow of money between banks, as it was when banks stopped lending to each other that the whole thing went belly up.

One part that I don't understand is this: Where did the 37 billion quid come from? I'm sure the government didn't have a stash of used £20 notes in the cellar, so they must have had the money in one or more banks. If that's the case then as the banks are going through very turbulent times, that 37 billion may end up worthless.

the 37 billion is going to be borrowed (not from those banks i'm sure lol), if the banks make money than the taxpayer will too :D

[Joeb454]

May I just remind you that politics are a no go area on these forums.

Should the discussion continue the thread will almost certainly be closed

[Martje_001]

How are you dealing with the financial crisis?
Just bought a new computer, my sister a laptop and my little sister a Wii. I personally don't see an impact on anything, except for the newspaper..

[blazercist]

May I just remind you that politics are a no go area on these forums.

Should the discussion continue the thread will almost certainly be closed

At the risk of some repercussion, may I ask where in this thread is politics mentioned? Government bail out of financial institutions is an economic discussion not political, even though there is some overlap.

[Johnsie]

I just got massive pay rise. I got promoted from being a data entry clerk to being the main programmer for the company. Credit crunch??? Where? I'm in a better financial position than I've ever been and my job is more secure because it is absolutely key to the successful functioning of the business.

Smart people are dealing with the credit crunch by enhancing their skills and working their way into more important jobs. It's really good to have skills that most other people don't have. If you like computing or programming then take time to learn stuff you don't already know, make people see how good you are and read alot of books about it.


ps. I think the UK PM did a good job. Banks and irresponsible borrowers areund the world caused the current global situation. The UK is a very small place and therefore needs to depend alot on foreign investment to be successful. Obviously a global downturn is going to affect that investment. A small nation like the UK isn't capable of being self-sufficient, simply because they don't have the resources to feed the population or the materials needed to have a strong industry. The UK needs to work with other countries and if those countries do badly then the UK suffers.


These issues are highly relevant to the future of Linux and the IT industry in general and should therefore be discussed freely on these forums. Economics and law are key to business, and if Ubuntu is to be accepted in business then it helps for Ubuntu users/promoters to have an awareness of the underlying issues of the business world. To understand business, law and economics then you must also have an understanding of politics and current affairs, especially when it relates to the computing industry.

[handy]

ps. I think the UK PM did a good job. Banks and irresponsible borrowers areund the world caused the current global situation.

Just like the banks did in the great depression. And they are continuing to receive public money on a massive scale. This crisis is really good for the banking cartels who run the financial world.

[ice60]

I just got massive pay rise. I got promoted from being a data entry clerk to being the main programmer for the company. Credit crunch??? Where? I'm in a better financial position than I've ever been and my job is more secure because it is absolutely key to the successful functioning of the business.

Smart people are dealing with the credit crunch by enhancing their skills and working their way into more important jobs. It's really good to have skills that most other people don't have. If you like computing or programming then take time to learn stuff you don't already know, make people see how good you are and read alot of books about it.


ps. I think the UK PM did a good job. Banks and irresponsible borrowers areund the world caused the current global situation. The UK is a very small place and therefore needs to depend alot on foreign investment to be successful. Obviously a global downturn is going to affect that investment. A small nation like the UK isn't capable of being self-sufficient, simply because they don't have the resources to feed the population or the materials needed to have a strong industry. The UK needs to work with other countries and if those countries do badly then the UK suffers.


These issues are highly relevant to the future of Linux and the IT industry in general and should therefore be discussed freely on these forums. Economics and law are key to business, and if Ubuntu is to be accepted in business then it helps for Ubuntu users/promoters to have an awareness of the underlying issues of the business world. To understand business, law and economics then you must also have an understanding of politics and current affairs, especially when it relates to the computing industry.even a moron like me could rip this post to bits, i don't believe you really follow british politics nor understand the global economy.

[Johnsie]

even a moron like me could rip this post to bits, i don't believe you really follow british politics nor understand the global economy.

Actually I have a very good understanding of British politics and the global economy. It's part of my job to understand economics, especially imports and exports. The UK is dependent on other nations for foods, fuels and materials that the UK cannot produce enough of. That's what happens when you cram 50 million people into a small geographical area. In the old days of British greatness the UK was able to get alot of that stuff for cheap or even for free from countries in the British Empire. I think some of the crown jewels were 'taken' from India, but now that the empire is gone they have to get wealth through the global economic system. When the global economic system started failing people around the world withdrew their investment banking stocks. Banking is the UK's biggest ad richest industry so it's obvious that the effect on the UK would be pretty bad. Also, most people in the UK don't have a balanced grasp on politics because the BBC, which controls a majority of UK-wide TV and radio stations, has a very far-left slant. Most British people only get the news from one perspective by living in a BBC bubble. You can look that up if you don't believe me. Google 'BBC bias'.

The UK has just enjoyed its longest period of sustained growth, but you don't hear that very often ;-)

[mips]

At the risk of some repercussion, may I ask where in this thread is politics mentioned? Government bail out of financial institutions is an economic discussion not political, even though there is some overlap.

See post #40-#42

[gn2]

May I just remind you that politics are a no go area on these forums.


One wonders why that is.

Surely there might be merit in having a Politics section?

What about all the OLPC discussion, that was political because it involved government initiatives.....
And the stories about Ubuntu being adopted by European government agencies....
And the discussion of fuel pricing and how it's derived, that's political too....

[forrestcupp]

I'm doing better than ever during this financial crisis. I can't really elaborate because it probably wouldn't be allowed on this forum. And no, it's not because of illegal methods, quite the opposite.

[mips]

I'm doing better than ever during this financial crisis. I can't really elaborate because it probably wouldn't be allowed on this forum. And no, it's not because of illegal methods, quite the opposite.

Lol, when you say things like that people get really interested. PM me as I would like to know ;)

[pp.]

I'm doing better than ever during this financial crisis.

Real estate? Arms? Insurance? Law?

[blazercist]

See post #40-#42

Ahh thanks, I didn't see that before.

[DrMega]

ps. I think the UK PM did a good job. Banks and irresponsible borrowers areund the world caused the current global situation. The UK is a very small place and therefore needs to depend alot on foreign investment to be successful. Obviously a global downturn is going to affect that investment. A small nation like the UK isn't capable of being self-sufficient, simply because they don't have the resources to feed the population or the materials needed to have a strong industry. The UK needs to work with other countries and if those countries do badly then the UK suffers.

You mention earlier in your post that it is good to learn stuff. I suggest you take your own advice and learn a few facts before you start posting this sort of rubbish.

[Interpreter]

Doh.
Not like (s)he's wrong...what did I miss?

[Sealbhach]

BBC news page this morning...


OH NOES!!!11!!!!

http://newsimg.bbc.co.uk/media/images/45145000/jpg/_45145235_-25.jpg

http://news.bbc.co.uk/1/hi/business/7692559.stm

Doesn't bother me really, I've never had much money anyway.


.

[DrMega]

Doh.
Not like (s)he's wrong...what did I miss?

I could explain but to do so would mean going into politics, which isn't allowed on this forum. If you want to pursue, you could post up a question at http://www.grubbn.org/omgpp, where there are no such rules against political discussion.

[damien22]

We pay the price of economy crisis or the energy crisis...work for less than 600euros never manage to get along...so let the stocks fall upon the heads of the "golden boys"...:popcorn:

[kaspar_silas]

I really like the don't panic replies. It's such a Prozacic response, smile and accept. Well in fairness, we will probably be okay for this crisis.

However, current economies are based on growth and that is not going to be possible forever. The world has finite resources and as the global population gets healthier and bigger these are getting really stretched, really quickly. I think the financial crisis in a warning of other resource crises to come. Thus I worry we are, or were, living in a golden age of "guilt free growth" which may very soon be ending. [Last weeks New Scientist magazine had similar ideas headlining with story titled "the folly of growth".]

More succinctly, I deal with the financial crisis by being pessimistic.

[mips]

I really like the don't panic replies. It's such a Prozacic response, smile and accept. Well in fairness, we will probably be okay for this crisis.

However, current economies are based on growth and that is not going to be possible forever. The world has finite resources and as the global population gets healthier and bigger these are getting really stretched, really quickly. I think the financial crisis in a warning of other resource crises to come. Thus I worry we are, or were, living in a golden age of "guilt free growth" which may very soon be ending. [Last weeks New Scientist magazine had similar ideas headlining with story titled "the folly of growth".]

More succinctly, I deal with the financial crisis by being pessimistic.

Panicking is not going to help anyone, if anything it will just make things worse.

Fortunately for us we had stricker credit laws introduced a while back and our banking system is pretty sound. There will however be a knock on effect here.

We are in this position today because of greed. The market is not capable of regulating itself as we have seen. Sound finacial sense is thrown out of the window. There are people right now making money off this little disaster.

Burt yes, I agree with you.

[lisati]

(Sighs) Each and every one of us has a responsibility to use whatever talents we have wisely. I think you guys will know what I mean if I say that "stuff" happens.....it's not my fault if someone else messes up.

[mips]

(Sighs) Each and every one of us has a responsibility to use whatever talents we have wisely. I think you guys will know what I mean if I say that "stuff" happens.....it's not my fault if someone else messes up.

No one said it was your fault. I think this thread is more about the changes normal people in the street have implemented to weather out this storm.

[DrMega]

(I think you guys will know what I mean if I say that "stuff" happens.....it's not my fault if someone else messes up.

I don't think any one individual is at fault, but the broader "it's not my fault" attitude tends to get a lot of people into a lot of bother.

[mips]

but the broader "it's not my fault" attitude tends to get a lot of people into a lot of bother.

Understood.

[Flynn555]

doesn't really affect me ... i live right off campus so i don't have to drive to school...

and guess what! i work on campus too. i walk everywhere woot! :guitar:

and i have def realized the money i have saved...

[handy]

Perhaps this crisis will cause some people to reevaluate their priorities?

Some may see the folly (insanity) of the growth at any cost economic paradigm which has been accompanied by the promotion at every turn of consumerism. These ground in attitudes have put so many people in the position of passing more wealth up from the base towards the top of the pyramid.

I do think that there are people in the upper levels of the pyramid that are really making many billions & perhaps even trillions of dollars out of this worldwide economic crisis, & I could be very easily convinced that people in very high places are running a monstrous scam, simple at the top, complex at the bottom.

[Sealbhach]

Of course, you must be aware that all of this may be a mere prelude for the big Derivatives bust...

http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid=%7BB9E54A5D-4796-4D0D-AC9E-D9124B59D436%7D&print=true&dist=printTop


To grasp how significant this five-fold bubble increase is, let's put that $516 trillion in the context of some other domestic and international monetary data:

U.S. annual gross domestic product is about $15 trillion
U.S. money supply is also about $15 trillion
Current proposed U.S. federal budget is $3 trillion
U.S. government's maximum legal debt is $9 trillion
U.S. mutual fund companies manage about $12 trillion
World's GDPs for all nations is approximately $50 trillion
Unfunded Social Security and Medicare benefits $50 trillion to $65 trillion
Total value of the world's real estate is estimated at about $75 trillion
Total value of world's stock and bond markets is more than $100 trillion
BIS valuation of world's derivatives back in 2002 was about $100 trillion
BIS 2007 valuation of the world's derivatives is now a whopping $516 trillion

[handy]

If the derivatives bubble bursts one would think that will ensure an economic meltdown of unprecedented size.

It is the hard way & fast way to a slow down carbon emissions...

[BLTicklemonster]

We're poor folks living paycheck to paycheck. Somebody else having a financial crisis, too? Great, misery loves company, have a seat, I'll teach you how to live without credit cards, then you teach someone, and they teach someone, and so on and so forth. And might I add that it's about time the market started righting itself. Enjoy the trip down fellers.

[BLTicklemonster]

If the derivatives bubble bursts one would think that will ensure an economic meltdown of unprecedented size.

It is the hard way & fast way to a slow down carbon emissions...

Carbon emissions? You're still stuck on that global warming stuff?

[d_skillz]

The best way to shield yourself is Don't panic.
Reduce debt in a sensible and sustainable way. Ensure your investments are in a safe place. Remember the higher the return the greater the risk

The average person will not be greatly affected except for higher prices and higher rates of unemployment. On the other hand if you have a mortgage you may well benefit from lower interest rates.

Your house value may drop in the short term but that is only an issue if you are selling

The only problem we have to brace ourselves for is steel, gold, houses are likely to drop but food and cost of living are likely to increase.

[geekygirl]

wow..anyone else depressed at reading some of the comments in here?! :(

I feel like some people should be wearing the old sandwich board getup with 'The End of The World is Nigh' on it instead of posting on the internet (which ironically is producing carbon thanks to the electricity that is generated to power your PC)

yes there is an ecomomic crisis, but as BLTicklemonster highlighted, some people in the real world have been struggling a lot longer than has been highlighted anyway, and then there are those of us (I am not talking about those people under 20 still living with Mum and Dad who do not have a household to run:p) who have not been affected other than noticing the increase in the price of PC parts etc...

The glass is half full....not half empty....

[Interpreter]

Seriously, this thing here is highly political, Americans telling what changed for them, the Euros giving a shrug of ignorance, the brits arguing among themselves, some Australia comparisons in between.
Someone just droped the carbon-is-a-hoax-bomb.
Let's all meet up somewhere else where we can discuss this until it turns into pure emotion, naiveness and hate and leave this very thread to those who are talking about how they're trying to deal with it.

[BLTicklemonster]

Carbon's not a hoax, it's plant food, silly. lol

No really, people still believe all that global warming rubbish?

[dmn_clown]

The glass is half full....not half empty....

When the 8th largest economy on the planet (The State of California) has trouble making payroll because of the credit markets, Daimler-Chrysler announces layoffs of 25% of their salaried employees with GM expected to announce more layoffs, and the only plan by any politician to create new jobs is the same "let's give a tax cut to every place that creates a new job" line that hasn't worked yet for the Republicans so why should it work when the Democrats tout it, the glass is two drops shy of empty and unfortunately things are only going to get worse, economically speaking.

Realistically, the working poor won't notice any difference except higher food prices and higher taxes thanks to W's dichotomy. Rich people screw up, go broke and are rescued in a quasi-socialist manner while the working class gets the cold hard shaft of capitalism.

[handy]

Carbon emissions? You're still stuck on that global warming stuff?

I know, I'm loopy.

Hopefully I'm deluded too.

P.S.

Your new avatar is cool, um, I mean hot. :-)

[Interpreter]

Yeah call me pervy, but I'm an anthropogenicist\\:D/.

[handy]

Yeah call me pervy, but I'm an anthropogenicist\\:D/.

Many of us are.

[Thelasko]

How come the market always goes crazy right at 2pm? Did you see it today? It did nothing all day, and at 2pm it goes up 10%. WTF!

[arashiko28]

My country has always been in the middle of a financial crisis, yet, we have one of higher rates of SUV's and luxury cars per capita at least of Latin America, our government has build a subway surrounding the 23,000 million local currency which are about... US$657,142,857.14, for 60Km of rails. But we have a high rate of school dropouts, criminals everywhere, blackouts that lasts from 5 to 36 hours, and the world keeps spinning for us. Just yesterday we had a 12hr blackout. When I've seen the news of the states with blackouts, the city becomes a total chaos, I think you should come over here and learn how to live with top edged technology all sort of gadgets, in a country where you can't count with electricity for anything that is really important, unless you have a backup like a power inverter or an emergency electrical plant.
Not to mention, we have the most expensive prices of electricity, gas, and all the other bills and taxes, we pay 16% ITBIS!!!

So... bottom line, financial crisis it's all in your mind.

[ZankerH]

I've mostly lived in Kaliningrad and Finland since the start of the current financial crisis, and I haven't noticed any effects of the crisis that would substantially effect my daily life. But then again, I don't drive a car.

[handy]

We grow our own fruit & veg'. Pump water from the river 400 meters away, burn timber from the paddocks surrounding the house, to warm it in winter, have placed a deposit on a grid feed solar panel installation which will be installed probably in about 3 months time, have received a quote for a brilliant solar hot water system, that uses tubes to warm a fluid which runs through a coil of copper tube inside of the stainless steel tank to heat the water. We should be saving $500+ a year on our electricity bills at the current prices. Though that does not take into consideration the per/watt payment we shall receive from whatever electricity company we decide to sell our electricity back to.

I have my car in town for sale, which will offset some of these hardware & installation costs.

[gn2]

We grow our own fruit & veg'. Pump water from the river 400 meters away, burn timber from the paddocks surrounding the house, to warm it in winter, have placed a deposit on a grid feed solar panel installation which will be installed probably in about 3 months time, have received a quote for a brilliant solar hot water system, that uses tubes to warm a fluid which runs through a coil of copper tube inside of the stainless steel tank to heat the water. We should be saving $500+ a year on our electricity bills at the current prices. Though that does not take into consideration the per/watt payment we shall receive from whatever electricity company we decide to sell our electricity back to.

I have my car in town for sale, which will offset some of these hardware & installation costs.

Is your name Tom and your wife Barbara, and do you have neighbours called Margo and Jerry?

http://www.bbc.co.uk/comedy/goodlife/index.shtml

[handy]

Is your name Tom and your wife Barbara, and do you have neighbours called Margo and Jerry?

http://www.bbc.co.uk/comedy/goodlife/index.shtml

No, & we don't have TV either! :lolflag:

[ukripper]

Working for stockbrokers as a developer, fears are of reduced bonuses this coming end of fiscal year for all employees! But life goes on despite...

[ukripper]

He obviously doesn't keep his money at Northern Rock. (http://news.bbc.co.uk/1/hi/uk_politics/7258492.stm)

He should start keeping his money in Northern rock as other banks are getting bailed out by us the tax payers.

[ukripper]

I just got massive pay rise. I got promoted from being a data entry clerk to being the main programmer for the company. Credit crunch??? Where? I'm in a better financial position than I've ever been and my job is more secure because it is absolutely key to the successful functioning of the business.

Smart people are dealing with the credit crunch by enhancing their skills and working their way into more important jobs. It's really good to have skills that most other people don't have. If you like computing or programming then take time to learn stuff you don't already know, make people see how good you are and read alot of books about it.


ps. I think the UK PM did a good job. Banks and irresponsible borrowers areund the world caused the current global situation. The UK is a very small place and therefore needs to depend alot on foreign investment to be successful. Obviously a global downturn is going to affect that investment. A small nation like the UK isn't capable of being self-sufficient, simply because they don't have the resources to feed the population or the materials needed to have a strong industry. The UK needs to work with other countries and if those countries do badly then the UK suffers.


These issues are highly relevant to the future of Linux and the IT industry in general and should therefore be discussed freely on these forums. Economics and law are key to business, and if Ubuntu is to be accepted in business then it helps for Ubuntu users/promoters to have an awareness of the underlying issues of the business world. To understand business, law and economics then you must also have an understanding of politics and current affairs, especially when it relates to the computing industry.

I agree with your post full heartedly!

[Interpreter]

As from how I understand it, and that ain't much, we're not affected the direct way, though chances are Germany might just become too expensive for it's trade partners/int. customers.
Which would leave an export country with noone to export to.

[Interpreter]

Uhm. Please....go on then.

[macogw]

No impact at all day to day. I don't know what all the fuss is about to be honest.

Same for me. I don't have a job (no time with classes), but since the "financial crisis" started I've had representatives from 2 companies display interest in hiring me. I didn't take out any loans this year for school either, because my apartment is cheap enough and my summer job paid well enough to cover the amount I would've borrowed.

Being a Linux geek rocks :D Linux is the reason I got that summer job and the reason I receive interest from companies even as many other industries are downsizing.

Oh, and I'm in the US. I can see the block on which the White House is located from my apartment building's front door.

[jocheem67]

Being a nurse working the I.C.U. it seems that work won't be a biggy for me...however I'm too being influenced by the bad news.

Makes you think 'bout your finances ( something that didn't bother me until now.I'm cutting back, and try not to watch the news too much...

It's indeed true that a lot of people in Europe look at the states like an angry child looks at his father...like " how could you do that to me"...probably very immature.

Well, I've got some savings, don't work at the moment ( sabbatical ) and am considering to leave for Vietnam, Cambodia in the spring. When the money is fleeing, at least I'll get me some great food overhere and will meet some very friendly people.:guitar:

[Swagman]

I'm carrying on with the same philosophy I have had all my married life (22 years).




If you can't afford it

Then

You Can't have it !!


I was somewhat irresponsible with my dosh before then though!!

[sdowney717]

I dont believe in total gloom, we will simply spend our way out of the mess.
Governments worldwide are simply going to spend your children's future prosperity to rig a near term recovery.
The vicious cycle just goes round, Then inflation will be back, higher rates and another downturn. And then more spending and more debt.
World economies are built on debt and greed.
They will tell you it is for the poor and downtrodden but the real benefits usually go to the rich and powerful.

[Thelasko]

Wow, this thread is back from the dead...

Anyway, from what I hear, now is a fantastic time to buy a car. A Dodge dealer in Florida is offering buy one get one free (http://www.palmbeachpost.com/localnews/content/business/epaper/2008/12/03/1203twoforone.html) on trucks.

[mips]

They will tell you it is for the poor and downtrodden but the real benefits usually go to the rich and powerful.

+1

Even during these times the filthy rich and financial institutions are making money out of the mess. Who pays the whole time, the little tax payer. Something has to be done with our governments but I don't know what as this has been going on forever.

[geoken]

Erasing debt and cash hording will hurt the economy as much as anything. The credit lock-up will intensify as debt interest financed credit is no longer available.

[will1911a1]

I'm in sales and the situation is making things pretty rough.

[MikeTheC]

Well, gas prices where I live here in Florida are about $1.63ish.

Someone said ages ago up-thread that as oil production cuts are made and inflation continues, oil prices (and therefore gas prices) will go up. The biggest issue with this is that gas prices keep falling because consumption is going down (voluntarily or involuntarily and the degree to which, one may argue). Consumption has declined because of high gas prices. If gas prices were to suddenly start going up again, consumption would almost surely drop even faster.

I don't believe we would get to a zero-gallon consumption point over it, of course, but nevertheless I think we've amply proven that, the tighter the oil industry and related markets squeeze, the more of us "slip through their fingers" (not to quote Princess Leia, but still...)

Now, I can only imagine what's going on in Dubai and in the rest of the oil cartel countries, insofar as discussions about oil prices and consumption are concerned, but surely they have to know that jacking up the prices is simply going to hurt them more. And frankly, if prices were right now to go back up to, say $3 or $4 a gallon at the pump, one would have to seriously question whether or not our economy could survive it. Brave and noble talk aside, I'm not entirely convinced it would. What it would probably do is exacerbate the situation and possibly bring on some of the effects of a depression even faster than what may already be happening.

Personally, right now I think it's too soon to tell what's going to happen. I'm out of work myself, and circumstances have provided for me the opportunity to go to college (a bit later in life, but what the heck) and so it's my hope that having experience plus college will better prepare me for a job out there. My worry is over whether or not there will be an economy for me to get a job in.

I'm told Australia is nice, though, and I am given to understand they even speak English there... :p

[mips]

I'm told Australia is nice, though, and I am given to understand they even speak English there... :p

Yeah, no worries murray ;)

[handy]

We have quite a few dialects, they are primarily influenced by location & education. The location (money) can dictates the quality of the education but once you get out into the country, (particularly in the outback) you can find some fantastic people with the most wonderful bush slang & hearts so big they will do anything to help you if you need assistance.

[unknown03]

Heh,
Minimize spending. Sell ALL my crap on Ebay. And started growing my own food.

I think if we have a collapse of the economy and we go into a depression we are worse off than the last time. More people than ever rely on the grocers for food -- and thats a bad thing.

Just my $0.02 (which used to be a dollar)

[capnthommo]

I am a carpenter in England and i haven't had any work at all since the end of October. and i can't see anything on the horizon either. of course, colleagues have whinged on about "all the Poles coming here taking our jobs" - deftly choosing to forget all the British guys who slipped away to Germany during other crises. people go where the jobs are, that's how it works. of course, i am a bit old to do this so i shall stay where i am instead of hopping a freight to California.
i have seen this all happen 4, maybe 5, times before and every time its a shock - 'oh my god, what's happened to the economy? we're all going down the tubes' - and every time it's all 'so much worse than ever before'
what is particularly galling is the blatant opportunism of some, eg opposition politicians who see it as a chance for personal advancement and so play up the bad news - yes, i'm looking at your gang, cameron! - (sorry, i came over all political for a moment there). and those who view house price decline as a chance to snap up a few good bargains.
i shall just get on with it the best way i can, just like before. and try to preserve some sense perspective. look round the world and see those who are REALLY having a hard life.
good luck, and keep smiling
oh, and i could always run away and be a pirate!
Capnthommo
):P

[halovivek]

1. buy stocks at low prices and keep aside.
2. spend money by using debit card.
3. keep aside of the credit card.
4. save money little by little

[Kernel Sanders]

I'm borrowing more money than I can afford to pay back in order to fund a spending splurge.

I'm buying myself lots of cool things, AND i'm helping the economy :KS

Where my government leads I will follow! :P

[Z_Cee]

I've been telling my wife that we were in a recession for the past year or so, but our Honest Politicians (namely President Bush) had been denying it. He denied it until it hit the big companies and 'Only Then' did he decide to do something about it. The way the US government has bailed out (buy into or take over) private companies, I think the ole' USA is no more. The name USSA is more appropriate = United Socialist States of America. The private industry buyout/bailout is something the US government should not have gotten into.

I feel the recession in the USA will turn into a full blown depression when US troops are brought home and the war effort that created jobs slow down. Recessions always follow a war because more jobless people are thrown into the mix looking for nonexistent employment. This of course means more social benefits are being paid out too. At the moment, what we are going through is rather calm.

How am I dealing with the financial crisis? I'm keeping the old car longer than I expected and I will not be buying a new computer within the next few years. If I have to replace a part on the car or computer - then I'll do it piece by piece. It's a good thing I have enough computer parts gathered over the past year or so to help keep me afloat.

[Swagman]

United Socialist States of America


I think you hit the nail on the head. Not to Diss Americans (The Citizens.. I Couldn't give a dead rats ar2e about their government) but I agree with your sentiment.

As far as the finacial crisis in cocerned.. I have PURCHASED (took me a fair while to save up for it) an electric pushbike to commute to work. Naturally I charge it up at work lol !!

I am currently saving up to upgrade to a higher spec computer than this ol dinosaur. I shall purchase it component by component and build it myself as I always do. Linux being the O/s of choice.

[Thelasko]

1. buy stocks at low prices and keep aside.
2. spend money by using debit card.
3. keep aside of the credit card.
4. save money little by little

With the current economic situation, those who have jobs are getting a "pay increase" in the form of deflation and tax cuts (http://uk.reuters.com/article/mideast/idUKTRE4B70ME20090105). It's about time, because it seems like over the past few years, prices kept going up but salaries haven't.

[derekr44]

With the current economic situation, those who have jobs are getting a "pay increase" in the form of deflation and tax cuts (http://uk.reuters.com/article/mideast/idUKTRE4B70ME20090105). It's about time, because it seems like over the past few years, prices kept going up but salaries haven't.

It's going to be the exact opposite. This proposed financial "bailout" system by the president-elect has grown to nearly $8T already. They're not tax cuts. It's general revenues pulled directly from Social Security. Read the Wall Street Journal (http://online.wsj.com/article/SB122455061443852529.html?mod=todays_us_opinion)

As for dealing with the financial status, I know that the best debt to retain is a mortgage so I am holding on to mine for dear life. I am working to pay off high interest debt (ie credit cards) because those are the most expensive... and to be honest, that's the #1 reason why the crisis is here anyway. It's not the big businesses that are completely to blame... it's the average consumer who doesn't use restraint and common sense to buy something he/she cannot afford.

[richg]

Quite well, thank you.

Rich

[Thelasko]

They're not tax cuts. It's general revenues pulled directly from Social Security. Read the Wall Street Journal (http://online.wsj.com/article/SB122455061443852529.html?mod=todays_us_opinion)

Read a recent article. (http://online.wsj.com/article/SB123111279694652423.html?mod=loomia&loomia_si=t0:a16:g2:r4:c0.0107478:b0) Plans have changed quite a bit since October. I agree that something needs to be done about the national debt, but now is not the time. I just hope that once the business cycle returns to growth, people in Washington will realize it's time to do what folks like you are doing, and pay off some debt.

Personally, I think a lot of consumers were forced to take on debt when prices rose and income didn't. Although there are some that went crazy with debt, I think those sorts of people exist in any economy.

[derekr44]

Read a recent article. (http://online.wsj.com/article/SB123111279694652423.html?mod=loomia&loomia_si=t0:a16:g2:r4:c0.0107478:b0) Plans have changed quite a bit since October. I agree that something needs to be done about the national debt, but now is not the time. I just hope that once the business cycle returns to growth, people in Washington will realize it's time to do what folks like you are doing, and pay off some debt.

Personally, I think a lot of consumers were forced to take on debt when prices rose and income didn't. Although there are some that went crazy with debt, I think those sorts of people exist in any economy.

There will always be those who buy now and pay later... they're everywhere. It's when a vast majority of consumers follow the same sentiment that's a problem. Giving money back to consumers to aid them in debt recovery is a great idea on paper. But honestly how many people use that to pay off something they already own and owe for? Get the money back to the banks and credit companies so they can lend to businesses easier and it will cost consumers MUCH less.

IMO, if you are wondering what to do about getting out of the situation you are in, get out of credit card debt like it's the vilest of plagues. You'll see a huge increase in your disposable income.

[Thelasko]

But honestly how many people use that to pay off something they already own and owe for? Get the money back to the banks and credit companies so they can lend to businesses easier and it will cost consumers MUCH less.

From the article I just posted:

Economists of all political stripes widely agree the checks sent out last spring were ineffective in stemming the economic slide, partly because many strapped consumers paid bills or saved the cash rather than spend it.

Here's an article (http://online.wsj.com/article/SB123120666040256163.html?mod=googlenews_wsj) about how banks aren't lending out the TARP money.

My personal opinion is that the bank's put all of the money in T-bills. I came up with this conclusion when I heard they were yielding a negative return (http://online.wsj.com/article/SB123110242350552007.html).

I personally keep a policy of avoiding credit card debt in my household. I was forced to purchase a car last summer, so I'm trying to pay that off. If I hadn't done that, I would buy one now, as there are some pretty good deals (http://wheels.blogs.nytimes.com/2008/11/28/florida-dealer-2-trucks-for-the-price-of-1-really/).

[iheartubuntu]

Simple...

done:
-no credit cards
-paid off house
-paid off car
-bought guns, gold and food
-use cash only
-switch from XP to linux two years ago :)

to do:
-slowly converting to solar and wind energy
-wish to dig my own water well
-grow my own tomatoes to sell at farmers markets
-buy old Volkswagen, convert to electric and use linux to run all the major components of the EV....

http://www.shirtees.net/ubuntuVW.jpg

[adamlau]

How am I dealing with the financial crisis? I stay home and tweak on *nix boxes :) .