Jeremiah 29:11

Unfortunately, I think things will get worse in 2008 and I hope during the Fall things will get better. We shall see. I hope this is a short lived slowed down.

MGDMike

Oh I hope so as well!

RLSH700

I think that is a likely possibility. The overall economy has been climbing for quite a while, it is only natural that it will have slow downs. You have to have slow downs before your growth periods. I think the long term is going to be more effected by the decisions made by the people who will be put into power. If any taxes increase, don't expect things to improve much.

Jeremiah 29:11

Part of the problem is with the press talking recession in the news, everybody believes it, they quite buying stuff and it becomes a self fulfilling prophecy.

RLSH700

That is also part of the problem. When people hear the press talking this way, it causes people to panic. The thing that amazes me is that they have been talking doom for the last six years and people still believe it. I learned to ignore the press once the Y2K problem was proven to be false. In my opinion, they hold no credibility. They will say whatever they think will sell more papers and/or help any agendas they might have.

1 Bad Mirada

i dont think that the middle class will dry up, so much as it will shift away from the "lower class". back in my parents time (they are babyboomers) "rich people" drove high end cars and lived in huge houses. six figures was the standard, but now that we have people who make SO much more than that, the middle class is now those people creeping up on six figures, especially if there are two incomes. i would say that the upper class household is now in the quarter-mil a range for a household of 2.

people who are "lower class" are still every bit as poor as they were in the 60s, as they are unable to afford anything more than the basic needs, but now the government rewards laziness for those who are poor just because theyre lazy.

RLSH700

That sums up my observation. From what I have observed, people in the middle class are doing better than they ever have. I remember when people had one to two cars in a household, now people normally have one or more per person. People keep getting larger and larger homes filling them with more and more luxuries. My grandparents still like to say they are part of the lower class but they aren't. They can afford to go on trips to Europe or pretty much anywhere in the world. They can retire anytime they want, but they don't because they would be too bored without the farm. They like to say the tired old saying "the rich are getting richer and the poor are getting poorer" yet they are able to buy newer and nicer cars more often, travel more, have more luxuries they never had before, eat out whenever they please, see any movies they want, etc. Back in the days that they want me to believe things were so perfect they were doing nowhere near as well as they are doing today.

The only cases I have seen where people have dropped from middle to lower class is following a death of the bread winner. In most of these cases, the problem can be resolved in a matter of two-four years as the other parent gets the training, education, or whatever necessary to get a good paying job. Other times, they have to make a very difficult but often necessary decision to relocate where there is work (a common problem where I was born and raised after the coal mine and printing plant shut down). The people that are still part of the real lower class that do not escape is a result of what you have described, Patrick. They depend on the government instead of picking themselves off the ground and putting in the effort.

1 Bad Mirada

exactly. my parents are a good example.

my dad is self employed, as he owns a shop. my mother owns a small third party cobra insurance company...she was previously the person who did all of the work, and the owner retired, selling her the company. things have gone well enough for her, and she has now hired her sister, although my mom hasnt become the boss that never comes to work. she prefers to be very hands on with things. my dads shop has slowed down over time, as hes gotten older, he doesnt want to tear into big jobs so often. they are, by most financial standings would suggest, in the lower class...but they own a house, an early 90s 30 foot motor home, he drives a 1994 525i and she drives a mid 90s volvo wagon. granted, they arent rolling in money, but more so, they make very good use of the money that they do have...most people who make the money that they do, dont handle it as well as they do. i think thats another problem...my parents get a new car when they can afford it, and that goes for everything else. too many people who dont have deep pockets are far too quick to spend a fortune just to keep up with the jones'.

on their tax return, theyre in the "lower earning class", but you would never guess it by looking at how they live, and it has been that way for the last 30 years.

Albeeno

I disagree with anybody who blaims this unending flow of negative news on the press! The press isn't driving up the price of light, sweet crude; they're not making your home worth a fraction of what it used to be; they're not causing your employer to make layoffs. Let's get real! It is what it is folks. The two biggest factores that are hurting us is the housing market and the fact that it's more difficult now than ever to get credit and/or approved for a loan. Wonder how this is going to effect most of us who were more then likely planning to finance our new Challengers...

And here's some more good news:
Employers Slash Jobs by Most in 5 Years
Friday March 7, 11:31 am ET
By Jeannine Aversa, AP Economics Writer
Employers Slash 63,000 Jobs in February, Most in 5 Years, Feeding Recession Fears

http://biz.yahoo.com/ap/080307/economy.html

1 Bad Mirada

is that picture your sig? if so, thats WAY too big...

back on topic, you surely cannot deny the fact that the media feeds this crap. i dont know how often i read something about how "gas prices are going up again", so everyone runs out to get gas, and a day later, its gone DOWN a few cents. the media creates fear, and people eat it up.