Frugal Kick

Yes, Virginia, it IS a recession

On December 1, 2008 the National Bureau of Economic Research (NBER) finally brought up the rear and announced that the United States has been in a recession since December 2007. The full announcement and analysis is available as a PDF here: Download NBER Dec 11 2008.

So now we can move on and start debating, is a depression next?

From where I stand, there do not appear to be any signs of the economy improving. In fact, I am hearing of more companies planning layoffs, more companies going out of business, and more people hunkering down even further to endure what 2009 may bring.

The Writing on the Wall: Recession, Again

A CNN poll conducted over the weekend revealed that 59% of Americans believe another economic depression is at least likely, if not very likely. The results don't surprise me.

Historically, when the economy has struggled, my husband and I have been lucky to not feel it immediately. We're employed in sales and finance, and generally are not the first jobs to face layoffs in tough times. So, I know that when I start to fear losing my job, the economy is officially in the toilet.

The question is, when is the National Bureau of Economic Research going to declare this puppy a recession? Even rapper Young Jeezy has beat the NBER to it, releasing an album in September titled "The Recession" and offering these Buffett-esque words of wisdom, "Now that money slowed up, I'ma be the one telling you to save it like they ain't gon' make it no more."

Your Bill for the $700 Billion Bailout

Some simple math for a complicated issue:

U.S. population is 300,000,000. The cost of the bailout is $700,000,000,000. Divide. Carry the one. Ta da! Your bill is $2,333, or $9,332 for every family of four.

I’m neither an economist nor politician, and don’t pretend to understand this $700 billion bailout. But that $700 billion has to come from somewhere to fund this plan.

Now that’s NOT frugal!

Are We Headed for Depression 2009?

Warren Buffett said in April that the recession will be "longer and deeper" than most people are expecting. With all the commotion on Wall Street last week, the forthcoming financial institution rescue plan, and little good news to speak of, it looks like he's right.

If my family and circle of friends and acquaintances are any indication, the economic troubles that started on Wall Street are careening down Main Street and crashing through front doors. My company is regularly laying off people, a close friend who is a dentist is seeing less patients, my husband is closing fewer sales and has fewer prospects, and an acquaintance who is a pastor is collecting fewer donations each week.

But are we headed for another Great Depression? At that time, unemployment levels were at 25% and being frugal was a way of life, not an option.

It's Hip to be Frugal

This article on MSNBC struck a chord with me as I'm in the midst of a complete lifestyle overhaul brought about by the current recession. According to this article, frugal is now hip, and if that's true this marks the first time in my life that I'm cool.