Notes from Arcadia
2:35 PM December 2, 2008
Headline in today's L.A. Times: "Recession Could Last Into 2010".
The story includes this lightning bolt: a few professors who study various scientific markers in the economy have now proclaimed that we're in a recession.
Actually, it started a year ago, in case you were wondering.
Outside a Starbucks here, it's not exactly earth-shattering news. How are people cutting back? They told us the following:
1. They're not going to Starbucks as much as they once did.
2. More family "communal" dinners, or "pot lucks".
3. One gift per kid for Christmas
4. Eating meals at Mom's house
5. Coupons
6. Going to parks instead of going out. More hiking and "nature" activities that don't cost anything.
The bottom line is that families are looking at the bottom line. They're living within their incomes, instead of spending money in home equity that no longer exists.
I did feel sorry for one woman who told us she had recently retired from teaching after 35 years. Instead of enjoying this time, she was worrying about her grown children. She told me she might have to take a part-time job, not for herself, but to help her kids pay their mortgages.
Posted by Eric Spillman | Permalink | Comments (9) | TrackBack (0)
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Hi Eric,
We should give them the bridge loan, they are not asking for free money, this would effect the entire u. s. economy in a negative way if we don't, where is our compassion?
Posted by: James Richardson | December 04, 2008 at 09:45 AM
Concerning the request for government aid to help save the big three . Lets not forget the fact that the money comes from taxes. Why should our tax dollars support their foreign investments in Mexico and and Canada? The cars built across the border do nothing for our job market. Lets not forget the Parts manufacturing, and support industries that are required to maintain those operations as well.
Posted by: Hal | December 04, 2008 at 08:23 AM
Yes, we need to retool the auto plants to mass produce "green" or at least maximum fuel efficient cars, hybrids, electric vehicles, ect. If the government is going to spend to bailout the automakers - a large chunk of the money must be marked to make the Ameerican auto industry competitive with Japan and Germany again. That will only happen if they build smaller, more fuel efficient vehicles, or cars that can run on alternative green energy. Otherwise, the government will just be throwing "pearls at swine" again!
Posted by: Craig | December 03, 2008 at 12:09 PM
It is was caused by whom/who?
It is the problem of dealing with a fiat currency..
Gold and silver is the way to go.. Just as the Supreme law of the land says only gold and silver coin shale be a dender in the payment of debts(Article I, Section 10).
Just obey it or amend it!!.
SO what does the new prez and his team say to do?
more credit and spending, not more saving and manufacturing we need to make something again..
Posted by: Jared Held | December 03, 2008 at 11:01 AM
You are so right, Paul.
My parents used to say "Always pay cash." But I thought we lived in a different world where credit was king. We had to use credit to build a financial history. We were too sophisticated for it to become a problem, right? Wrong!
Posted by: jozielee | December 03, 2008 at 07:15 AM
Eric,
If people had learned from their parents and grand parents who lived through the Great Deprssion, it was to live within your means this country would not be in the shape it's in.
Now we are all paying for it with higher costs. It's funny it took this long to say we are in a recession. People have been saying that for over a year. Now it's true.
We all have to tighten our belts.
Posted by: Paul | December 03, 2008 at 05:03 AM
EddieInCA:
This article is about cutting back. Maybe even the newsroom is feeling the pinch - recycled footage must be less expensive than sending out a reporter and film crew. Hahaha. Good catch.
ERIC:
One of the many reasons I watch the KTLA Morning News is for the inexpensive entertainment ideas suggested by most of you, especially Gayle Anderson. She sent us to the Ghost Train at Griffith Park ($5), the Motorcycle museum exhibit (free), the Rose Parade (free), the Skirball Noah's Arch (minimal fee), the Santa Monica light show (free), etc. This was never more helpful than during Gayle's Do-It-Cheap segments when gas prices soared.
We don't have to spend a lot to have fun. Thanksgiving morning you visited families whose greatest joy was spending time together. This morning Allie talked about feeding friends instead of buying them presents. Being with friends and family - that's what the holidays are all about.
The economy? Recession, depression - we may have to revert to wearing a rope for a belt, but we'll pull ourselves through it.
L'Chaim!
Posted by: jozielee | December 03, 2008 at 12:35 AM
Hey Eric -
Your 10pm News showed a clip of a New Zealand car chase tonight, 12/2/08 at around 10:15pm that is actually from 2000!!!!
Who the f**k is running that newscast?
Here's the youtube link to the "news" pushed tonight on KTLA: http://www.youtube.com/watch?v=o5X8m_FsYvs
Look at the date it was posted: 1/12/08.
Posted by: EddieInCA | December 02, 2008 at 10:20 PM
Maybe all these discussions will encourage people to live within their means and spend less. Cutting back is hard, but spending time together is precious.
And the car companies don't want to hear it, but driving older cars and paying off the house were choices we made to keep expenses low.
We chose to live simply so we could both work from home and be there for the kids. Now as our clients have cut back, we've cut out some of the eating out and Starbucks and other non-essentials, but I wouldn't trade my time for the world.
Posted by: Angel | December 02, 2008 at 04:27 PM