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The Recession and You

Started by 23 Daves, August 30, 2008, 12:00:16 PM

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23 Daves

There are a few threads on the forum at the moment referencing impending financial doom for the whole country, but I just wondered how many posters have been personally hit by crashing house prices, rising fuel bills, economic stagnation, etc, themselves.  The press would seem to have us believe that a significant percentage of people are presently destitute, and eating leaves from the gutter - whereas speaking on a personal level, I only know a couple of people who were made redundant late last year, and one person who was wrongfully sacked this year and is now taking legal action against her company (which she stands to do very well out of, as they haven't a leg to stand on).  It hardly seems like an amazing tally, and unless people buying slightly fewer computer games, CDs and DVDs counts as a "crisis", I can't see anything much going on at the moment.

I'm going to have to breathe in a bit this year, just because my loving landlady has put the rent up, and also heating costs are going to rise, and I haven't had a pay rise which really takes into account either occurrence adequately - but I'll manage by just spending less money on crap, and possibly downloading the odd CD I'm not sure about rather than buying it.  The company I work for has also (freakishly) increased its income by 17% this year and is taking on more people, so I'm not too worried about the prospect of redundancy yet either.

I've no doubt that things are set to get much worse over the next two years, but is anyone suffering a lot right now?

Jemble Fred

I remember the early nineties' recession ©Norman Lamont being talked about an awful lot, but not noticing any effects whatsoever – won't this be much the same, ultimately, to those not heavily involved in finance? We're not talking soup kitchens, breadlines and Grapes of Wrath, are we? Though I'm no expert...

As it happens, and sorry if this is A) incorrect, and B) offensive – bear in mind I fly from financial matters like a smouldered gannet – but I'm hoping for a windfall at the end of next year which could give me a chance to buy my own house or at least start the process... which would be a very good time to buy, no? Bad luck for the poor seller, of course, but shouldn't it be a boon to the buyer?

I repeat, I know NOTHING.

TheWizard

I think a lot of stuff in newspapers is middle class people playing at austerity and slapping themselves on the back about it.

biggytitbo

Well if the chancellor is correct and its the worst economic crisis in 60 years then we only have to look at 1948 for what it will be like. So massive debts, food rationing and general austerity.

There's always a bit of a time lag before a recession really starts to hit home. I think the next year will bring major bank failures, the FTSE below 4000, house prices down 50%, the pound crashing, a big rise in unemployment and repossessions, oil at $200 plus, and a desperate government trying to inflate their way out of the mess by printing more money. I think then the pain will hit, especially for those that spent the last 10 years borrowing lots of money to buy consumerist shite and overpriced houses.

Backstage With Slowdive

I've actually done well out of the credit crunch because my landlady couldn't sell the flat as my tenancy came to an end, so she agreed to my offer to stay on under a new tenancy, which was great as I couldn't find anywhere else to live due to all letting agents being cunts who won't accept someone on Housing Benefit (despite me explaining that I am technically still in employment).

Jack Shaftoe

Jemble Fred said:

Quotevery good time to buy?

Depends, I think, because it's pretty hard to get a mortgage right now, although the rates seem to have come down again since my partner and I bought our first house three months ago (d'oh!). Having a chunk of cash for a deposit is always going to swing things in your favour though.

In a year, I seem to have gone from being single and renting, to having bought a house with my partner, who earns way more than me, but has just gone on maternity leave, with the child due in about a week's time. Thus I am the sole bringer-in of income for a while.

It should be terrifying, but at the moment it's working out okay, so I'm trying not to think about it.

Jemble Fred

Congratulations! And thanks for the info... I have a horrible feeling I may end up being one of those cunts who says 'Recession? What recession?'

Galeee

If you can arrange a cash deposit, think it's 10%, & the rest of the finance, you'd probably do best at a repossession auction.
It feels kind of evil, though, profiting from others' misfortune & all that. We bought the house we're in now very cheaply in an auction 15 years ago - & then we had the previous owner, who went bankrupt, lodgng with us for about 18 moths, so we didn't feel too guilty...

As a rural dweller,  the fuel prices are caning my finances. We get one bus a week here, so own transport is a necessity. I am considering a donkey and cart..

Blumf

There's already been lay-offs at my life-partner's work (supplies the building trade). Fortunately she wasn't in the direct line of that. I'm hoping my company is a little more shielded from economic swings.

I remember the early 90s recession and not seeing much happening, but if you ask around you will find people who were screwed over by it. Assuming Darling et al are right expect more people to be adversely affected this time around.

Jack Shaftoe

Thanks for congrats.

My earlier plans to ride the recession out by growing all my own food fell on its arse, when my entire tomato crop got blight and went brown and yellow. Although I did find a wooden crossbow (for kids) at the gift shop at the nearby castle this weekend, so I may sneak back, copy the plans and rig up a few with bungee cords and sharpened curtain rods, to repel looters when the dark days come.

(secretly, I want to roam the countryside with my newborn daughter strapped to my back, righting wrongs like in that Lone Wolf Cub manga, but my partner might get annoyed).

CaledonianGonzo

I work (when I have to) as a contractor in Financial Services and this summer I've definitely noticed a bit of lethargy in the jobs front.  In fact, it's taken me a couple of months to find something this time around, which is about 7 weeks longer than it normally takes me.

That giggling, snuffling sound I hear is the wolf outside my front door.  Luckily, my new role pays stupid amounts of money, so I can hopefully get rid of it by hitting it on the snout with a massive bunch of fivers.

And further congrats and best wishes to Jack, Mrs and the forthcoming bonny baby Shaftoe.

koeman

I'm a mortgage broker, and doing ok, but I know a lot of fellow brokers who have gone out of business. Talk in the industry is that the media is doing a lot of damage with the constant scaremongering, stories of house prices falling at the fastest rate since god knows when, and telling us that things are going to get a lot worse before they get better.

But the main reason for all of this is that banks are unutterable cunts, and when things do right themselves, the banks will do exactly that they did before, and fuck it all up again before long, the greedy, unethical, dual-pricing cunts.

And many congratulations to Mr Shaftoe and kin, just don't let your kid work in a bank, Jack.

biggytitbo

I find this idea of the media talking us into a recession absolutely hilarious. I don't remember the VIs complaing when for 10 years you couldn't switch a TV program on or read a newspaper without seeing something encouraging or talking up House price inflation. The fact is it's that 10 year gold rush that has gotten us into this mess, the parties over and we're now going to have to clean up the damage.

Ronnie the Raincoat

I'm not sure if I am just imagining this or not, due to the hysterics in the press, but my shopping is costing me more these days.  I buy roughly the same amount each week and my bill has gone up from the £20s to the £30s.  Everything seems to be a little more expensive than it was, and it's adding up.

Lfbarfe

Quote from: 23 Daves on August 30, 2008, 12:00:16 PMI'll manage by just spending less money on crap

This is the key. As far as I can tell, the so-called crisis is merely the end of a period of runaway, unsustainable, unjustified growth and prosperity, rather than a full-scale reverse. And what it means to most punters is an end to pointless acquisition and waste. I used to be a terrible spendthrift, but I've adjusted, over the last couple of years, to justifying every single bit of expenditure. If I don't absolutely need something, I don't buy it. I can get at least three good meals for two out of a single chicken. When my computer went wrong earlier this year, I was quoted £150 by a local repair shop, and saw new machines going for not much more. Instead, I sourced the parts myself online and did it for under £50. It's an oddly liberating feeling, and I feel I'm ahead of this particular curve, so I'll be with Jemble in the smug camp, letting our million pound book advances mature in our off-shore accounts and telling charity collectors to fuck off.

The weekly food shop is going up a bit, but if you have access to a freezer, you can beat the odds. I already have the Christmas turkey, bought last December when Morrisons was knocking them out half price. Buying stuff that's just about to go out of date and batch cooking are your friends. Also, soup. I made some last night with several onions, a tin of chopped tomatoes and a couple of spuds that the Covent Garden lot could have charged at least £2.50 for. I estimate my ingredients to have cost less than 50p.

Braintree

I'm suffering but not due to the credit crunch as such but due to the fact that some stupid policy(that even Universities minister seems not to understand) means I got no grant(I can just about live without that) and no tutition fee loan, so I had to pay £3070 out of overdrafts and bursaries but I'm down a lot of money. Luckily my credit rating is pretty good so I got student credit cards to cover me and my money goes back to "normal" in January but February-December 2008 has(and will be) been the toughest for me financially.

My mum, on a low income, is really struggling too. Ronnie is right. Food is going up,even in cheap supermarkets, around 20p per week for some products. Which adds up I think if your income is above £15,000 you aren't noticing any major effects but anyone below that is.

So I conclude that the people who have posted so far(except Ronnie) are middle class cunts.

koeman

Quote from: Braintree on August 30, 2008, 01:30:36 PM
So I conclude that the people who have posted so far(except Ronnie) are middle class cunts.

I find that very offensive. I'm a working class cunt.

Braintree

Quote from: Lfbarfe on August 30, 2008, 01:30:06 PM
This is the key. As far as I can tell, the so-called crisis is merely the end of a period of runaway, unsustainable, unjustified growth and prosperity, rather than a full-scale reverse. And what it means to most punters is an end to pointless acquisition and waste. I used to be a terrible spendthrift, but I've adjusted, over the last couple of years, to justifying every single bit of expenditure. If I don't absolutely need something, I don't buy it. I can get at least three good meals for two out of a single chicken. When my computer went wrong earlier this year, I was quoted £150 by a local repair shop, and saw new machines going for not much more. Instead, I sourced the parts myself online and did it for under £50. It's an oddly liberating feeling, and I feel I'm ahead of this particular curve, so I'll be with Jemble in the smug camp, letting our million pound book advances mature in our off-shore accounts and telling charity collectors to fuck off.

The weekly food shop is going up a bit, but if you have access to a freezer, you can beat the odds. I already have the Christmas turkey, bought last December when Morrisons was knocking them out half price. Buying stuff that's just about to go out of date and batch cooking are your friends. Also, soup. I made some last night with several onions, a tin of chopped tomatoes and a couple of spuds that the Covent Garden lot could have charged at least £2.50 for. I estimate my ingredients to have cost less than 50p.


I think that is the crucial thing here. People are so dependent on things being easy. On This Morning there was a family who were pre chopped lettuce for 95p when a whole lettuce was 75p. More people(and I include myself this. I rely on ready meals too much because my cooking is atrocious) need to start making meals and chopping their own veg. I think as a single person I just think "Oh well it will just go to waste" but with freezing and making meals last over a few days(Mince can always be re-heated and cooked chicken and stock can make lots of meals too)

Cheap, government subsidised cooking classes would be great because people would carry on what they have learnt even when the economy improves.

xXx SuTtOnPuBcRaWl xXx

I survive almost entirely off things from the reduced section of my local Tesco. It's actually very easy and cheap to do this. Usually there's a fairly decent selection of stuff there.

Lfbarfe

Quote from: xXx SuTtOnPuBcRaWl xXx on August 30, 2008, 01:50:18 PM
I survive almost entirely off things from the reduced section of my local Tesco. It's actually very easy and cheap to do this. Usually there's a fairly decent selection of stuff there.

The people who visit the reduced section of my local Asda at about 7pm each night should join the riot squad. They blockade the fridge very effectively, to ensure they get the pick of the bargains. However, most of the time, they pick off all the crap, leaving the £1.50 joints of pork for people who know what to do with them, like me.

Braintree

Quote from: xXx SuTtOnPuBcRaWl xXx on August 30, 2008, 01:50:18 PM
I survive almost entirely off things from the reduced section of my local Tesco. It's actually very easy and cheap to do this. Usually there's a fairly decent selection of stuff there.

I'm used to buying supermarket own from my budget childhood. I do think the reason many university students suffer is because they never saw their parents buy cheap food or budget. The middle class annoying women in The Daily Mail who are screaming about problems are probably just having to budget for the first time.

I always panic that the reduced section is out to kill me though. Is it always poison-free, SPC?

xXx SuTtOnPuBcRaWl xXx

Quote from: Braintree on August 30, 2008, 01:55:19 PMI'm used to buying supermarket own from my budget childhood. I do think the reason many university students suffer is because they never saw their parents buy cheap food or budget. The middle class annoying women in The Daily Mail who are screaming about problems are probably just having to budget for the first time.

One thing that absolutely infuriates me is people who refuse to buy supermarket own brand produce. So many people insist on buying the brand product when the supermarket own brand product is identical. For example Heinz beans are no better than supermarket own brand beans. In fact I'd even say Sainsbury's beans are slightly better. But so many people insist on buying Heinz because they think it's better. Absolutely fucking stupid. It actually angers me.

Another example is nurofen, which people buy at a few pounds for a packet when exactly the same number of pills containing exactly the same amount of ibuprofen costs something like 40p (or whatever, I'm not sad enough to have memorised the price of ibuprofen) if you buy it supermarket own brand. There really is no excuse for this kind of behaviour. It should be punishable by death.

QuoteI always panic that the reduced section is out to kill me though. Is it always poison-free, SPC?

I've never been made ill by anything from it. They wouldn't sell stuff if it was dangerous (well, they probably wouldn't, or at least they're not supposed to).

biggytitbo

What beans someone buys is their business not yours! Whilst I have a lot of sympathy for the way the economic system treats ordinary people I have no sympathy for people who just accept the situation and don't protect themselves. My family has always been poor and I've never had any money until recent years but I'll be fine in this recession because I refuse to be a victim and I've taken steps to make sure I'll not only be fine but will probably benefit from a downturn. Choosing to be a victim, ie taking out stupid loans you can't afford, spending too much on crap, having big debts, financial illiteracy is unforgivable in my view and those are the people that are going to suffer.

Emma Raducanu

I'm starting back at university this year and living off and paying tuition fees from my savings, in a way it is heart breaking to imagine my bank account going from beautiful thousands to, I predict, minus £1000. The only way recession can affect me, is by forcing me into looking for a job should I reach my overdraft sooner than anticipated.

23 Daves

Quote from: Lfbarfe on August 30, 2008, 01:54:09 PM
The people who visit the reduced section of my local Asda at about 7pm each night should join the riot squad. They blockade the fridge very effectively, to ensure they get the pick of the bargains. However, most of the time, they pick off all the crap, leaving the £1.50 joints of pork for people who know what to do with them, like me.

Yes, I've noticed this phenomenon - you can witness entire families acting as "barriers" to the reduced goods.  Although in my local Sainsbury's/ Asda, there's never anything on the shelf worth taking, just prawns which are due to go off at the end of the day, packs of salmon for ten (ditto) and microwave meals.  

I am planning to go on a cooking course or just teach myself at some point this year, purely because my mother is a hopeless cook and didn't pass much useful knowledge down.  She was part of the seventies generation of mothers who thought it was sophisticated if you got everything out of a packet - I was even told off for not eating Spam as a child.  So I'll get some sort of book and start learning, that or just do a quick series of evening classes.  I can do the basics, but some things still seem alien to me.

xXx SuTtOnPuBcRaWl xXx

Quote from: biggytitbo on August 30, 2008, 02:17:34 PMWhat beans someone buys is their business not yours!

That's where you're WRONG. I bet you buy Heinz beans, don't you?

biggytitbo

Quote from: xXx SuTtOnPuBcRaWl xXx on August 30, 2008, 02:31:40 PM
That's where you're WRONG. I bet you buy Heinz beans, don't you?

Morrisons own brand! Although I did buy some Heinz when they were on offer the other week. I'm a big fan of supermarket whoopsies and 2 for 1 deals in general and tend to buy what's on offer.

whorespital

big up heads and nods to the discount section.

When I lived in Blighty, unemployed like, Tesco's reduced food area was a godsend. Simply unpeeled the reduced priced tags and placed them on the fresher, standard priced equivalents. I always went for gourmet. I have no idea what the stickability of them are these days but it certainly made the hunter-gatherer instinct worthwhile. 

Bit like illegal file sharing really, naughty but nice.

Emma Raducanu

I just go straight for the bins.

Santa's Boyfriend

I can tell you that a lot of media companies are really suffering, especially ones that rely on advertising jobs to bring in the cash.  Effectively, everyone that has cash to spend on advertising or tv programmes is sitting on it and waiting to see what happens with the economy, meaning that the companies that actually rely on making that stuff aren't getting any work in.  This means that only the bigger companies are doing ok right now as they've got stuff in play that will probably see them through, but even they are tightening their output.  Effectively, this whole economic uncertainty has put the jitters up a lot of markets to the point that everyone is reluctant to spend any money, meaning that fear of recession may actually cause a recession in itself.

An accountant I met briefly a couple of months ago told me that the only solvent company he'd seen in the last six months had been a retirement home.

It might not be affecting you yet, but it's out there an it's affecting a lot of people.