Wake up Washington -- Recession is here!
Filed under: Banks, Budgets, Debt, Saving Money, The Dolans, Wealth
Ken and Daria Dolan are widely known as America's First Family of Personal Finance.
We are SO sick and tired of hearing all the talking heads -- the economists, Wall Streeters, politicians and so-called "experts" -- debating whether or not we will have a recession this year.
Folks, just look around you for heaven's sake...we are ALREADY in a recession! And it doesn't take a genius to see it...- Consumers didn't consume as much over the holiday season as they did last year.
- Only 18,000 new jobs were created last month.
- The number of homes in foreclosure is still growing at an alarming rate.
Plus construction industry layoffs are mounting, credit card defaults are growing, oil prices are choking household budgets and hurting businesses...
Look, we're not trying to depress you or sound alarmist, but we are saying BE PREPARED -- we think this economy is going to get worse before it gets better. It is time to get control of your money life. Pay down your debt. Beef up your savings. Protect your portfolio.
And tell Washington to wake up, to stop trying to sell us a bunch of bull about the "good news" in the economy, and start making smart policy decisions that will boost this economy (unlike their ridiculous plan for addressing the subprime mortgage crisis.)
Tell us what you think! Are you and your family feeling the pinch? Are you worried about what lies ahead for our economy, or have the Dolans finally lost their marbles?
Ken and Daria Dolan of Dolans.com have hosted their own national radio program for 22 years, anchored their own television shows on CNN, authored six books on money matters, served as money contributors on CBS This Morning and have now launched a comprehensive web site and free e-letter at Dolans.com.
Reader Comments (Page 1 of 2)
1-26-2008 @ 12:12PM
mark said...
Let's put the blame where it belongs, on the gov't. To raise minimum wage sounds like a good idea, but think in the long run. It has cost us all. A fast food meal is now $5.70 not $3.00 food the same, and any product is going to cost consumers more, now add fuel costs. TA DA instant resession. So are they going to raise SSI payments for the poor? People on fixed incomes are the ones to suffer. NO one is plannig to spend 50 billion to help them instead the gov't is giving it to businesses.This gov't needs to be removed. Let's put someone on a fixed income in to be president.
Reply
1-28-2008 @ 9:45AM
Texmac said...
We have elected a house full of crooks to manage our nation, Now it looks like we are about to do it again, Grow the hell up America, Stop putting fast talking slick num-nuts over our nation who has no back ground running a large company,
Reply
1-28-2008 @ 9:50AM
Fred Phifer said...
Yes I agree we are in a recession. Bill Clinton(D) did balance the budget and had an excess. George W Bush(R) wasted it all and now has this country back in record debt. But, until all politicians wake up in Washington and bring back jobs from overseas to the good ole USA, it is only going to get worse over time. My wife and I worked for GE for 31 and 35 years until they closed all the motor businesses in 2006, and were forced to take an early retirement from there.Now, all that is left in this country are the lower paying jobs. I say that every politician that has voted to send jobs overseas, shoudl have their job sent overseas also, or he hanged has traitors to the American workiing people.
Reply
1-28-2008 @ 10:28AM
T-Bone said...
Well put Fred! We the working folk out here are truly amused when we hear the same dribble from all the so call experts (talking heads) in cyberspace. I once read somewhere that "when you lose your job it is a Recession" and "when your neighbor loses his or her job it is a Depression". Hmm I wonder who said that? I work in the Mortgage industry, suffice to say its looks like a Recession to me. In this industry I have seen greedy companies send thousands of good paying jobs to India and Phillipines. WALLSTREET SAYS GREED IS GOOD.....WOW SEEMS LIKE THE TAIL WAGGING THE DAWG TO ME...
But what do I know I don't have a degree in Elite-ism and every day I wake up I see the 500 pound Gorilla in the room (plez read the former as RECESSION)..gas is nearing $5/gal...food is through the roof...power costs are soaring...the graph of the DOW JONE line looks like cardio line on a patient in cardic arrest.......Wow what a mess we the American people have become SHEEP...What can you pay with a $600 handout from Washington?
Reply
1-28-2008 @ 11:59AM
rich said...
In the event this country becomes a neocommunist state as wished for by some and -Then -if business and economy went "BAD" would the people be held accountable for a decline in living conditions ?
Reply
1-28-2008 @ 12:46PM
LAWMANTOO said...
HEY FOLKS, I AM IN A RECESSION PROOF BUSINESS. I PRACTICE BANKRUPTCY LAW AND , WOW, AM I BUSY.
BELIEVE IT OR NOT, WE'VE BEEN IN A RECESSION FOR ABOUT TWO YEARS ACCORDING TO MY CLIENTS' STORIES. BUSH AND HIS CONGRESSIONAL LACKYS TRIED TO SKEW THE NUMBERS BY MAKING BANKRUPTCY MORE DIFFICULT TO DECLARE. BUT THE ROADBLOCKS WERE MERELY TEMPORARY.
WHEN THE JOBS GO TO THE THIRD WORLD AND THE BILLS REMAIN AT HOME, GUESS WHAT? THE S*** HITS THE FAN.
THE BEST THING WE CAN DO IS HUNKER DOWN, CLEAN OUT THE CONGRESS AND WAIT IT OUT. WE CAN ALSO BITCH OUR HEADS OFF TO THE POLITICAL PARTIES DEMANDING CANDIDATES WHO ARE MORE INTERESTED IN SAVING THE UNION RATHER THAN LOOTING IT.
Reply
3-24-2008 @ 11:29PM
Joan said...
Can anyone answer this question for me? I'm a field rep for a data collection company. The company pays me $.33 per mile. I've been told I can claim the difference between the $.33 and $.485 the government allows. Is this true? And if so, where do you claim it?
Any help will be appreciated.
Reply
1-09-2008 @ 3:17PM
Mark Comerford said...
I agree completely. The gov't knows it and Wall St. knows it. This falls on the gov't and Greenspan who virtually conspired to fleece the citizens by not doing their duty and protecting us. Planned benign neglect is a charitable way of saying it.
My contention is that the Republican Party has been bought out by corporate America and followed that philsophy into government. Now, even though we are trillions in debt they, Bush's administration, is about to pillage the future of the country further by bailing out the banks and the mortgage lenders. What a disgrace !!!!!!
Reply
3-11-2008 @ 12:41PM
Sonja G said...
I agree that our government has many issues. However the general population must take responsibility for their own checkbooks and households.---No one twisted anyones arm and made them purchase overpriced, gas guzzleing suvs---no one made people pupurchase homes that are 4 times as large as they need and 5 times as expensive!---Americans are free to make their own choices and unfortunately for the past decade or so many have chosen to live beyond their means.---Out of all of my kids friends I can count on one hand the number that DO NOT live in oversized, cookie cutter houses---every one has a tv and video game system in their room and their moms all drive tanks that most of them can not even park---Greed---that's what it is, parents who can't say no to themselves and therefore do not say no to their kids.---Maybe a recession will slow everyone down and re evaluate the choices they have made.
1-09-2008 @ 3:31PM
Erwos said...
It also doesn't take a genius to know that "recession" means two consecutive quarters of negative GDP growth - just an economist. Which neither of these two are, I would point out. Being good at personal finance doesn't mean you're good at macroeconomics, apparently.
The "recession means what I want it to mean!" BS in the first paragraph is just a subtle way of diverting attention from the facts, which don't line up with their opinions. Don't be fooled.
Reply
1-09-2008 @ 3:50PM
dennis said...
well they might not be 100% but we are starving to death. i draw 925.00 a month disible { stroke } and bush { BULLSHIT } i mean and our gov. thinks we draw 26k per-year explain that one know it allllllllllllllllllllllllllll
1-09-2008 @ 4:00PM
tim said...
i agree we do home improvement work in Ga and we have been shut down for 3months. We have called every were for work even out of state and no one has anything or dont want to let go of what they gat.
Reply
1-09-2008 @ 4:54PM
bobr3 said...
Don't be fooled or a second....Erwos WORKS on Wall St. What a joke. This guy is one of the talking heads.
Reply
1-10-2008 @ 11:18AM
Erwos said...
Actually, I work for an ISP. I just happen to have a tasteful, expensive education in economics from college. But, that's another fun tactic used in the blogosphere: if you're against me, you must be a shill!
1-09-2008 @ 7:10PM
roonie said...
We need new leaders in the White-House, somwone who really gives a sh-t.
stop with the BS
Reply
1-09-2008 @ 8:48PM
Tom said...
Idiots and scare mongers!! We are NOT in a recession. Our economy is amazing, with housing,energy and credit
problems, growth continues - at a slower pace. The first
two quarters of 2008 will show 0.5-1.5% growth and the
second half of '08 will be recovery mode. There are some great buys in the market due your homework and
buy the future of the USA!
Reply
1-28-2008 @ 11:03AM
s c said...
Let's just see who is calling who an idiot when it gets really bad. At least we are prepared.
1-10-2008 @ 12:41AM
bambam said...
We had a surplus-----now a 9 trillion dollar deficit.How can people be so caught up in their "lib" bashing and democrat hating that they see nothing wrong with this whole picture.An unnecessary war,no-bid contracts to every company who happens to be a huge Republican campaign contributor....its ludicrous.The working class who are the backbone of the tax base ask How....can you sell America out like this?We should make it economically advantageous to help the planet,not poison it!Our kids will judge us harshly for this complacency when we knew better.Its as if the white house said"to hell with the working class.....we can get Chinese and Mexican imports to push them into economic ruin.
Reply
1-10-2008 @ 2:16AM
Phil said...
FIRST THINGS FIRST,YES WE ARE AND HAVE BEEN IN A RECESSION ! YOU DO NOT NEED TWO QTRs IN A ROW TO BE IN ONE! SOME PEOPLE LIKE THE ENRON STATS THE U.S.GOVERNMENT GIVES OUT TO WALL STREET . UNEMPLOYMENT ,THE DEPT O LABOR ONLY COUNTS PEOPLE WHO MADE APPS IN THE LAST 90 DAYS! THEY DO NOT COUNT PEOPLE WHO COLLECT BEYOND 90 DAYS OR WHO WERE DENIED OR EXHUSTED THEIR BENIFITS! ITS NOT 5% ITS 10 -15%. INFLATION, CORE INFLATION EXCLUDES FOOD AND ENERGY? WHY ? LEAVING OUT 2/3rds OF THE STAT's MAKES IT LOOK GOOD? LAYOFF's FROM ALL SEGMENTS OF THE ECONOMY!KEEP DREAMING ?
Reply
1-10-2008 @ 7:14AM
Erwos said...
Some guy who can't use spelling and grammar is trying to convince me of his macroeconomics skills? Give me a break.
You remind me of a friend who has the same "problems" with core inflation things. He claims it's because the basket doesn't measure certain things. In reality, it's because he hates the Fed and the current administration, and he wants core inflation to be high to prove his "point". High energy and food prices wind up influencing the core inflation basket in the long run.
Same thing for unemployment. All countries use roughly the same statistics for calculating unemployment. The fact that you don't like what they're measuring, or more likely what the results are, doesn't mean the measure is unimportant. No one was whining that the unemployment index was flawed when we had record low unemployment in the late 90's, which is rather telling.
I have a degree in economics. It's not as easy or as simple as it looks. Proficiency managing a checkbook doesn't give you proficiency in national economic matters. It's that simple, really.