Hi everyone, I hope everything is going well for you. Today I noticed the American stock market has taken a nose dive. For the past few months I have been hearing about this recession. To be honest, I didn’t really think much of the recession. But, in the past few weeks I have really noticed the way people are spending their money. The feds went out of their way to cut fund rates by 0.75 today. That might not sound like a lot, but it is huge. This is the biggest move they have made since 1984. That means they are getting desperate. I even saw some panic in their faces today. The Dow Jones dropped by over 400 points earlier in the day. Only to be recovered at a little over 100 points under as the day ended. Over a 100 point drop in the stock market is huge. When the feds cut fund rates to try and boost the economy, there is something wrong.
Other countries around the world are getting richer while we suffer. The United States has made some pretty bad decisions to bring on this recession. For one, they pretty much force huge companies to move to other countries in order to operate properly. Every time a huge company moves to another country thousands of jobs are lost in the USA. It’s harder than ever to get a good reliable job, that you can stay at for a long period of time. Almost every company seems to be on the verge of disaster. It’s cheaper to operate a business in another country. You don’t have to pay huge salaries to employees if they don’t operate in the USA.
Now is the time to start your home business. You may need some emergency money. While we are in this recession, it’s a good idea to not spend money unless you really need to spend it. Don’t spend more than you make. In the past, you could spend more than you make. Because you knew you could make it up somehow later on. Since we are in a recession (seems like it is going to be a bad one), you never know if you will get your next bill caught up or that car payment fully paid for the month. Most people rely on only one job to pay for the bills and keep a roof over their head. A second or third income will really help out until the recession is over.
If you have kids that live with you; lay down the law and make them get a job to help out. Don’t take all their money, they are kids. They could help with a few bills each month and pay a room-and-board fee regularly. This will set a good example for your kids and get them ready for the real world. Desperate times take desperate measures to fix things. And it is desperate times. The US dollar fell to every major currency in the world except the Yen today. Our money used to be top dog around the world. Now it is getting to the point where other countries won’t except a dollar, because it’s not worth as much as their currency.
We have to bounce back somehow. The only way to bounce back from a recession is to save your money and only spend it on necessities. The bad part is, by saving your money you can’t help the economy. But as Americans, we have to be smart. Even though our government isn’t making the smartest decisions right now. Overcome the bad and be positive the whole way through it. No matter how bad things get, stay with it. One out of 600 homes that has a mortgage, is up for foreclosure in America right now. That’s not good. Even hard working families are struggling right now. All it will take is one bad thing to happen to them and it’s all over. I have seen people get laid off from jobs they have had for decades. Now they don’t have anywhere to go for work. They didn’t have a back-up plan in place just in case things went wrong.
We have to prepare for the worst in recession. Having a back-up plan can be the best preparation you can do in time of recession. Don’t let that one thing destroy your progress towards your dreams. Save as much money as you can. Get some other incomes going in to house. Anywhere you can save money, take advantage of it. Don’t waste any money unless you can spare it. Not all of the people in the USA are in tough times right now. If the recession hasn’t affected you yet; don’t worry, it will. This recession is supposed to be the worst one America has ever seen. I would hate to see anyone lose everything they own because they weren’t prepared for it.
President Bush wants to give us an eight hundred dollar tax break. The sad part is; it won’t make the economy any better. People are just going to pay off bills with the extra money. He wants to give us this money because he thinks people will spend it. But when half the country is in debt over their head; the money won’t do the economy any good at all. Half of Americans polled say they are on the verge of losing everything if things don’t get better. It is going to take a lot more than eight hundred dollars to fix problems amounting in the thousands per family.
Sorry to bore you with this subject everyone, but it needs addressing. I just hope things get better before they get worse. Thanks for reading my blog, see you all tomorrow.
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