How Do We Weather This Economic Storm? ~ Nannymm

It is hard for most of us to understand what we should do to get through this crisis. Where should we put our money? Should we save or spend?  Do we risk a job change or stay where we are?  Is now a good time to refinance the mortgage?  The questions are endless and we each have different concerns.
For me, it’s trying to figure out whether I should cut back and save more or keep spending as I have. I’ve already cut back, mostly on gas and fuel oil. But should I cut back more? If so, where?
On the one hand, we’re told that our endless spending spree is what got us into this mess. On the other hand, we’re told that we need to spend our way out of it. So, if I cut back on my spending, will I be contributing to the loss of a job or the closing of a store or other business?  Will my increased savings allow my bank to lend more, thus loosening credit? Frankly, I’m confused.
I came across an article in the NY Times today that attempts to answer my question.


To Spend or to Save? Trick Question

It’s your fault. Part of it is, anyway. You, the American consumer, spent too much money. You bought too much house, took on too much debt and generally lived beyond your means. Your free-spending ways helped cause the worst financial crisis since the Great Depression.

And now you’re going to have to do your part to end the crisis. How? By spending. Enough already with the saving that many of you have suddenly begun doing. This very moment, Congress and President Obama are preparing to send you a tax rebate, to inspire you to stimulate the economy. So go out and stimulate. Spend as if the future of your country depended on it.

What follows is a guide to spending and saving, both sensibly and patriotically.

http://www.nytimes.com/2009/02/11/business/economy/11leonhardt.html?em

The author, David Leonhardt, offers some excellent suggestions and with some thought I’m sure we can come up with some of our own.
Now if only we could find answers to all the other questions that are floating out there.….

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57 Comments

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57 responses to “How Do We Weather This Economic Storm? ~ Nannymm

  1. You’re right, it’s very confusing, not to mention the fact that it’s a really good time to pick up on bargains! For me, unless it’s something I really need I’m holding off spending, of course the fact that business is slow right now doesn’t make that a very decision to come to!

  2. Interesting post Nanny,
    I am beginning to see whole economic consumer in segments…..and unfortunately, I think the people with the most disposable income:
    a. have just about everything they really need
    b. are the type to save even more during these times

    The hyper consumer: young families to middle aged families are the ones scared to death of losing their income, and they have to spend just to survive……dental appointments, school supplies, insurance health and home and auto insurance, tuitions, and fees, etc. – I don’t see that segment coming to the rescue.

    Young single and/or couples w/o children but with employment….can do some damage in the consuming arena….
    ______
    btw- Did I tell you guys I am saving 100.00 PER MONTH by changing auto insurance? Geico…I love that Gecko! My friend is saving 40.00 per month.

    sounds like a commercial, but it is not!

  3. Nannymm

    I switched to GEICO several years ago and have saved a small fortune, UB. My homeowners policy (Liberty Mutual) was just raised over $800 per year and I’ve never had a claim! So I’m going to switch that to GEICO, too.

  4. Funny – I am changing our homeowner as well to Geico, it’s on my list of things to do this week…lol

  5. dnd

    Great post Nannymm. Leonhardt’s notion of spending as investing will become a new paradigm (I hope). All too often we buy crap that we don’t need, and may not even want. To make matters worse, we may be putting it on a credit card and wind up paying more for this stuff than it’s worth.

  6. Nannymm

    OK..see you all later! Off to do some shopping. Groceries and a Birthday present for my son. He’ll be 30 tomorrow.

  7. We should get some “love” from Geico for these free testimonials.

  8. Big 3-0

    Did you know 30 is the “new 10” ?

  9. dnd,
    to add to your point – now what’s even worse, is the crap we bought , we can’t sell because no one wants to buy it!

  10. dnd,
    A while back, did you recommend the book, “Your Money or Your Life”?
    I just picked it up the other day, and read a few pages…..it’s sound exactly like direction I want to take….so thank you, if it was your suggestion.
    ——-
    Valentine’s day is manana….what a great day for a birthday!
    ——-
    back to work……

  11. dnd

    Sra Burrito,
    “Your Money or Your Life” is awesome. Perfect book for these troubled economic times. Or anytime really.

  12. BevnTempe

    Excellent post – you ask the questions that are on everyone’s minds. When listening to the liberal side, spending is the way to go. If you listen to the old men of the right, tax cuts will save us as they have done the past 8 years, Right and the bridge is for sale again!

    A topic for another day is whether the old men of the right will be re-elected when their term is up. I guess they’re from conservative areas, so they don’t seem to be too worried. I think they should worry!

    Happy weekend to all for all the great days we’re celebrating. Arizona, #48, became a state on Valentine’s Day in 1912.

  13. I’m alarmed about what is to happen. What I”m going to say is not out of partisanship, it’s not out of “losing’… it’s based on a few leaps of logic but I feel perfectly justified.

    Everything about Obama screams to a type of Castro. Im not totally well versed on Cuban Revolution.. just the broad theme… Castro appeared with the backing of the people to combat corrupt regime and once placed at the top of his country he turned into a collectivist hell.

    Everything about Obama’s radical Pre-US-Senate-past , his lack of paper trail, his extraordinarily deceptive campaign, his dabbling in being a Cult of Personality and his odd behavior all say to me that he and probably along with Pelosi want to crash this country so they could be in place to remake (as he says) it to their ideology.

    Our Gov’s biggest crisis outside of terrorism is this debt. especially after this Gov stupidly decided to put itself on hoc for trillions of dollars. It should have never done this. The best thing would have been to let crash what is going to crash. Let the bottom be reached quickly. let the recovery will come It was govt interference int he first place that opened the door for “smart” people to lose thier minds

    The man in the white house is not the man from the campaign.Just like with his Raputin’s other client, Duval Patrick, Obama is not the one he said they were waiting for. He’s not Mr Clean. Mr Post-Racist, Mr Non-Partisan

    He’s a disciple of Saul Alinsky. His first mentors called him gifted at using Alinsky’s framework. He’s a foot shoulder of ACORN. He sued Citibank in the early 90s over Mortgages and state of Illinois over motor-voter. He’s he rainmaker at the Chicago Allenburg Challenge, responsible for “spreading the wealth” of a 100M grant to his friends..

    And he’s a guy with some very well connected people that go back to his childhood.

    The radical Frank Davis is a friend of his g-parents. He flees Chicago and hides out in Hawaii for a while, taking a young Barak under his wing. Back in Chicago Frank Davis is friends with Thomas Ayers, CEO of the power utility and father of William Ayers.

    In the 80s, a certain Michelle Robinson is working at a lawfirm right alongside the beautiful wife of William Ayers.. Bernadine Dohrn.

    It is Ayers who gets Obama his job at that lawfirm. and that is how Obama and our gracious First Lady meet.. under the approving glances of Bernadine Dohrn and William Ayers.

    As I mentioned earlier, Obama sues Citibank over Redlining. Obama isnt the only one interested in banks.

    So is his mother, Stanley. She prefers life in trainquil Indonesia. And it is there that she meets with Peter Geithner. He’s the father of Timothy Geithner, the tax cheat and fraud and current Sec of Treasury.

    Geithner is architech of many of the Gov’s responses to the crisis , starting with Bear Sterns.

    TRILLIONS OF SQUANDARD DOLLARS.. And they’re just getting started.

    Isn’t all of this odd? Isn’t the insistance that this guy get the job no matter what a bit unusual. There is no indespensible in the finanicial markets. They couldhave got someoen else for his job. Especially someone who knows what he’s doing.

    But Obama stuck by this guy,… knowing his reputation would suffer. So just with Ayers.. one has to wonder how far do these two guys go back?

    Ok this is geting quite long and I’m sure many ofy ou think I’m crazy. I’m nearly certain that Obama is a hard-core Anti-Capitalist Anti-Constitution Anti-Liberty Radical.

    Our system of govenment and life is at risk. I really believe that. And so do so many others. I hope when you guys encounter people saying the things I am that you realize that we’re absolutely sincere in this.

    So getting back to the subject of ths article of weathing the storm… i say don’t hate the weather but the weather machine.

    I’m sure you think I’m nuts.. but i’m not .. I see a man who is in the most powerful position on Earth, get there by hiding as much as his past as possible. By running a personality that isn’t his. And by starting off in such a corrupt manner.

    I”m from Chicago.. I know these narcsist types.. they’re not just politician, they’re also city workers, they’re mafia types and wanna-bes… they’re part of this ever growing collection of thoroughly unscrupulous power-mongers.

    Obama bathed in these waters the entire he was here. And now the rest of hte country and even the world is now about to get a Taste of Chicago.

    There is no weathering this storm…. and it has only begun.

    I say all of that with respect for your opinions.. I hope you dont think I said all of this as a tactic or attack on you guys. Its not. But I thought since you appreciated another view. I would give you this one. A lot of people have it..

    Anyone see how a person can get to these conclusions? Or am I off my rocker? 🙂

  14. I vote for off your rocker!

    😆

  15. Pardoned the typing errors. I’m at work and wasn’t able to devote proper time and focus to the text and get my job done at same time.

  16. horsedooty

    hi Vince,

    it might be more forceful an argument if you had some citations for us to read other than what seems to be your opinion. Care to share with us where we learn about this big conspiracy?

  17. dnd

    Vince,
    Would you please cite sources for these claims?

    ps. If you have an idea for a thread post, write it up and send it to Brian.

  18. Wow , Vince, you are certainly wound up today!

    Do you find a lot of support for your ideas, outside the blogging world?

    I’ll be back in a bit…….

  19. Yes vince, by all means if you’d like to author a thread please do, you can reach me by using the contact tab at the top of the page.

  20. BevnTempe

    “Pardoned the typing errors. I’m at work and wasn’t able to devote proper time and focus to the text and get my job done at same time.”

    I’m curious what type of job allows you to write such lengthly and involved blog posts and also get your job done at the same time.

    Are you self-employed because your boss sure isn’t looking over your shoulder to see what you’re doing on the computer. You certainly have some interesting thoughts.

  21. dnd

    “A source told the Denver Post that Obama would be in Denver-metro area on Tuesday and that the White House is looking for a work site at which Obama can tout green energy components of the $798 billion federal stimulus bill. ”

    http://www.denverpost.com/breakingnews/ci_11689758

    Well duh! Howzabout the Vestas wind turbine blade factory in Windsor? Or the National Renewable Energy Labs in Golden?

  22. I”m a programmer… so i’m used to holding a large and logically-consistant construct my head and then furiously try to type it all out before I get distracted or forget 🙂 And also make a lot of typing errors that the glorious complier discovers.

    I can back up every statement of fact that I made. I’ll need an evening to do it.

  23. dnd

    Vince,
    Compilers only detect syntactic errors, not semantic errors 😉

  24. dog's eye view

    Judd Gregg has withdrawn his nomination for Commerce.

    What is up with Commerce?!

  25. dog's eye view

    Gregg’s statement. Kathy: plz show up and give us the real scoop! Is it truly “irreconcilable differences” over the Census and stimulus?

    I want to thank the President for nominating me to serve in his Cabinet as Secretary of Commerce. This was a great honor, and I had felt that I could bring some views and ideas that would assist him in governing during this difficult time. I especially admire his willingness to reach across the aisle.

    “However, it has become apparent during this process that this will not work for me as I have found that on issues such as the stimulus package and the Census there are irresolvable conflicts for me. Prior to accepting this post, we had discussed these and other potential differences, but unfortunately we did not adequately focus on these concerns. We are functioning from a different set of views on many critical items of policy.

    “Obviously the President requires a team that is fully supportive of all his initiatives.

    “I greatly admire President Obama and know our country will benefit from his leadership, but at this time I must withdraw my name from consideration for this position.

    “As we move forward, I expect there will be many issues and initiatives where I can and will work to assure the success of the President’s proposals. This will certainly be a goal of mine.

    “Kathy and I also want to specifically thank Governor Lynch and Bonnie Newman for their friendship and assistance during this period. In addition we wish to thank all the people, especially in New Hampshire, who have been so kind and generous in their supportive comments.

    “As a further matter of clarification, nothing about the vetting process played any role in this decision. I will continue to represent the people of New Hampshire in the United States Senate.”

  26. dnd

    “I have found that on issues such as the stimulus package and the Census there are irresolvable conflicts for me. ”

    The Census? Huh? Not really what one would call a partisan issue. Gregg is hiding something…

    So who’s the next doomed candidate for Commerce?

  27. Nannymm

    Actually, dnd, it can be VERY partisan. The repugs and the dems have vastly different ideas as to who should be counted, how the counts are done, etc. The repugs have a very narrow view of who is counted while dems seek a much more inclusive count. The results are extremely important, thus the process and who controls the process matters greatly.

  28. re:Disagreement on Census: One would think that they both knew that going in…I think there is more to this than meets the eye…..

  29. funny face by accident….. *Disagreement*

  30. dnd

    Nannymm,
    Perhaps the Census Bureau should be a non-partisan agency like the CBO. All people living in the US should be counted. For those who aren’t counted, there are standard statistical methods to include them.

    Gregg getting his panties in a twist because the WH wants Census rather than Commerce doesn’t fly. As Sra Burrito said, he knew that going in.

    Maybe he didn’t pay his taxes 😉

  31. Maybe he has a secret life …… (wait I have to look at his photo)……where he dresses in ladies clothing and throws pampered chef parties?

  32. Nannymm

    I agree, dnd, that it should be non-partisan. But so should voting. Yet every year we have battle over who can register, what proof they need, etc. The census is the same. It is unfortunate, but things just aren’t as they should be.
    As for Gregg, I suspect he was pushed. His refusal to vote for Obama’s stimulus package could not have been well received.

  33. Nannymm

    Ewww! That is one helluva picture you conjure up there, UB. 😀

  34. Basically repugs hate the poor and homeless….and they do not want them voting.
    I remember an article I sent my daughter last year, that was about some place allowing people to use park addresses as their home and allowed them to vote……

    I think Gregg caved to political pressure from his republican peers…

  35. dnd

    On one hand, I have a lot of respect for Gregg. If he can’t be a team player, don’t join the team. On the other hand, why did even bother to entertain the Cabinet position? There’s more to this story than meets the eye.

  36. Nannymm

    I agree, dnd. Maybe we’ll find out in the coming days.

  37. Nannymm

    Have any of you read the series in Salon this week about soldiers who commit suicide after returning from Iraq? I’m reading it and crying. This is such a tragedy!

    Death in the USA: The Army’s fatal neglect

    Returning U.S. combat soldiers are committing suicide and murder in alarming numbers. In a special series, Salon uncovers the habitual mistreatment behind the preventable deaths.
    http://www.salon.com/news/special/coming_home/2009/02/09/coming_home_intro/

  38. I think the average America may be heading into an escapist-like mode, movies should do well, frivolous fashions, sports, a drink at the lounge or a beer at the pub…..anything to get away from the constant barrage of dire news. (Just an observation.)

    We are getting a new Frontier League (?) baseball team in a nearby suburb….. Brand new stadium – some players from big teams and a bunch of youngsters. We have beautiful summer nights, it would be fun to go to a game and not drop 150.00 for the night.

    http://www.morningjournal.com/articles/2009/02/06/sports/mj581674.txt#photo2

  39. Nanny,
    I haven’t read that one yet, but there also is a spike in violent crimes….for the returning vets. As I am sure you know….you can’t be pushing prozac to these soldiers without an attending physician, buts that what they have done.
    In addition there is a stigma associated with mental health throughout the armed forces. So these soldiers come home without knowing how to tapper off the Prozac, and they feel they have to hde their issues.

    It’s just awful.

  40. dnd

    Nannymm,
    I heard last week that more solders committed suicide than were killed in Iraq and Afghanistan. I can’t begin to understand what’s so wrong with how we treat our vets.

  41. Nannymm

    It’s beyond awful, UB. Wait till you read the Salon series. It’s hard to believe that the “Support Our Troops” gang keeps turning a blind eye to this. I hope and pray that Obama cracks down HARD on this and ensures that our soldiers get all the help they need in a professional and therapeutic setting. This is just plain disgraceful!

  42. This is a story I read last month that really stuck with me. Two promising souls.

    http://www.nytimes.com/2009/01/02/us/02veterans.html?pagewanted=all

    We need to take care of these Veterans. So they can cope and re-adjust to civilian life, or American life.

  43. dnd

    On Lincoln’s 200th birthday I have this observation: for those of you who have never seen the Lincoln Memorial on the National Mall, put it on your bucket list.

    For me there are two memorials on the National Mall that leave me speechless: the Lincoln Memorial and the Vietnam Veterans Memorial.

  44. dnd,
    I would love to see the Vietnam Veterans Memorial, when I was last in DC….I was in eighth grade….it wasn’t built yet.

    I have heard how moving it is. I can’t imagine.

  45. Nannymm

    I have seen both, dnd. Am planning to take my grandson to DC in the next couple years. I want him to see it for himself.

  46. dnd

    Sra Burrito,
    “I have heard how moving it is. I can’t imagine.”

    Correct on both counts. I remember visiting on a beautiful summer day. People on the National Mall were chatting and laughing and enjoying the day. As we descended into the Memorial, a hush came over the crowd. Grizzled old vets were weeping. People were laying flowers, touching the names on the wall. People were praying. Leaving the Memorial I saw the last name on the wall. I felt a pit in my stomach.

    That day I completely understood why my father, a WWII combat vet in Africa and Italy, hated that war in Vietnam.

  47. dnd,
    Thank you for sharing your experience.

    You may know that there were many people whose designs for that memorial were competing with each other, I remember design winner was a young woman (I think) from Ohio……

    To me that is a great compliment to the importance of art and design…that is, when the art actually really works to influence and make people feel and think on their own.

    Some year, I will go….cherry blossom time…if I have a choice.

  48. If you haven’t seen Slumdog Millionaire, you really should, excellent movie and well worth the 12 bucks!

  49. Axelrod To Bush Advisers: Butt Out

    But, Axelrod saved his strongest condemnation for the man who held his job in the Bush White House: Karl Rove. Of Rove’s criticism of Obama’s economic stimulus plan, Axelrod said: “The last thing that I think we are looking for at this juncture is advice on fiscal integrity or ethics from Karl Rove — anyone who’s read the newspapers for the last eight years would laugh at that.”

    Rove did not return an email seeking comment. But, he did pen an op-ed today in the Wall Street Journal in which he starkly criticized the way Obama has gone about addressing the financial crisis and heaped praise on congressional Republicans for how they have handled the matter.

    http://voices.washingtonpost.com/thefix/2009/02/axelrod_on_bush_advisers_butt.html?wprss=thefix

  50. Here are some links to back up the factual assertions I made. Many of these links are to blogs and you’ll find many wild speculations being made at same of these links. I think if one were to make a timeline of Obama’s life and make a note of who his associates were during each milestone , the speculations and theories woud almost write themselves. I’ve seen a few of these timelines and they’re part of what has substantianted by fears about this guy. (My first awareness that something was odd about this candidate was when Michelle was giving unusual spiritually themed campaign speeches last year).. so I look at the man’s past… what of it that we know..and what of it that we know he admits to and that which he ommits or lies about.

    This is the problem when people want to be put into positions of power and yet are not forthcoming with their past. There is no doubt at all that Obama did all he could to minimize and defuse all question into his ties with Ayers. The leads to the question , “Why”. It’s the smae thing with many people wanting to see his Birth Certificate. Why not release it? Why actively fight it, spending hundreds of thousands of dollars when it could cost $20 to make all the rumors end.

    His relationship with Ayers could be completely irrelevent, but the fact that it goes back at least 5 years beyond that which he admits to, and the fact that Barack’s wife knew William’s’ years and worked together is even more incredible thing to not disclose when being asked about Ayers.

    If this guy is so “transparent” why not tell everyone that Ayers/Dohrn were instrumental in Obama meeting and falling in love with his wife?

    So having prefaced with all that, here are some links that collaborate with the factual statements about Obama’s past activities/events.

    ======================================

    He’s a disciple of Saul Alinsky. His first mentors called him gifted at using Alinsky’s framework. He’s a foot shoulder of ACORN. He sued Citibank in the early 90s over Mortgages and state of Illinois over motor-voter. He’s he rainmaker at the Chicago Allenburg Challenge, responsible for “spreading the wealth” of a 100M grant to his friends..

    [Alinksy/ACORN stuff. I assume the CAC is not disputed by anyone]
    http://www.glennbeck.com/content/articles/article/196/16130/
    http://www.ibdeditorials.com/IBDArticles.aspx?id=302137342405551
    http://www.zimbio.com/Barack+Obama/articles/916/Saul+Alinsky+yet+another+Obama+mentor+Marxist
    http://www.thenewamerican.com/usnews/24-elections/395
    http://www.newsweek.com/id/128633/page/3

    =================================================

    And he’s a guy with some very well connected people that go back to his childhood.

    The radical Frank Davis is a friend of his g-parents. He flees Chicago and hides out in Hawaii for a while, taking a young Barak under his wing. Back in Chicago Frank Davis is friends with Thomas Ayers, CEO of the power utility and father of William Ayers.

    http://www.newswithviews.com/Kincaid/cliff209.htm
    http://www.telegraph.co.uk/news/worldnews/northamerica/usa/barackobama/2601914/Frank-Marshall-Davis-alleged-Communist-was-early-influence-on-Barack-Obama.html
    http://atlasshrugs2000.typepad.com/atlas_shrugs/2008/10/obama-marinated.html
    http://texasdarlin.wordpress.com/2008/10/05/obamas-ties-to-ayers-back-to-high-school/

    =============================================================

    In the 80s, a certain Michelle Robinson is working at a lawfirm right alongside the beautiful wife of William Ayers.. Bernadine Dohrn. It is Ayers who gets Obama his job at that lawfirm. and that is how Obama and our gracious First Lady meet.. under the approving glances of Bernadine Dohrn and William Ayers.

    http://oldatlanticlighthouse.wordpress.com/2008/04/22/was-bernardine-dohrn-the-mentor-of-michelle-obama-at-sidley-austin/
    http://en.wikipedia.org/wiki/Barack_Obama

    =============================================

    As I mentioned earlier, Obama sues Citibank over Redlining. Obama isnt the only one interested in banks.

    So is his mother, Stanley. She prefers life in trainquil Indonesia. And it is there that she meets with Peter Geithner. He’s the father of Timothy Geithner, the tax cheat and fraud and current Sec of Treasury.

    http://www.economicpolicyjournal.com/2009/02/who-is-timothy-geithner_12.html

    =======================================

  51. To Blog Moderator/Admin:

    I posted a longish comment that had links backing up my earlier statement. I suspected the SPAM filter would eat it,a and I think that is what happened.. can you release it?

  52. In Rules for Radicals Alinsky writes, “There’s another reason for working inside the system. Dostoevsky said that taking a new step is what people fear most. Any revolutionary change must be preceded by a passive, affirmative, non-challenging attitude toward change among the mass of our people. They must feel so frustrated, so defeated, so lost, so futureless in the prevailing system that they are willing to let go of the past and change the future. This acceptance is the reformation essential to any revolution.”

    I think this is what Barack is doing with his traveling road show of Misery in America.

    Projecting people’s most personal challenges for nationwide broadcast .. tales of the most sad woe and personal misery… beaming around the world. People in misery decrying their condition…
    . and all of it to say “America’s systems have failed”

    Clearly there are problems.. I am not denying that. nor am I saying these folks are lying (though I have to remain skeptical of everything i see on TV). but what in the world is the President of hte US doing ? Why is he wasting his time with this? The actual job a President does is adminsistering the Exec branch.. the exec branch implements the law. The law is set by Congress based on the People’s need (allegedly)

    In any case.. the Dems have the numbers to pass this bill.. he doesn’t need to be doing this to overcome opposition.

    He’s alinskinig… he’s doing all he can to get people to want the US to trash our Constitution and Liberty and become socialist or worse.

  53. I released it, only two links per post in the future or your post will be held up.

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