But, enough complaining; back to job searching and attempting to add to my income through blogging.

I think that this recession has the power to open up our eyes to the fine line there is between making it and not making it in this country. The benefits of this are twofold. One it puts fiscal responsibility back on the top of the list. Two it raises the social consciousness that people out there need help, because more of these people are your neighbor, your co-worker, you sister… it personalizes the plight of poverty in America.

I can’t articulate many reasons for it, but I also feel that a recession is a great time to bring the focus to your family. Finding things to do together as a family that are not expensive, that bring back some quality time to your life that might have been slipping away in the “boom”. I also think this particular recession is a great time for my husband and I to start a family. I lost my job recently and am finding it might be quite a while before I find a new one. As long as we can survive on one income this it is a good time to take some time off from my career without the stigma of having done it solely for having a child.

http://www.richerandslimmer.com/2009/01/24/vacation-update/

However, I do agree with you that if one has already saved up a sizeable chunk of money, and has safe job, this is a good time to buy and go on vacations.

Regards

If you lose your job, there is nothing *good* about a recession. Especially if you lose your job that was productive for the real economy (i.e. we could do with a few less people in the financial sector).

Funny, what are the jobs that people have here that they feel so secure in? I’m curious, cause I know mine’s not safe…

So true ^^^^^ (Good article by the way)

The sales over Christmas were pretty good… and still are! I picked up a bargain digital camera and plasma TV. (Even though plasma might be heading the way of the gas guzzling cars… a social stigma to own…)

Unfortunately, really answering Brandon’s question is probably like 2 or 3 blog posts. Here’s the “really quick version”.

In the 80s, the government tried to “kill” the recession by raising interest rates. High rates = more people buying government bills = more dollars in circulation = higher inflation rates.

If you look at the 30s, the US government basically just “printed” money they didn’t really have in an attempt to “keep people working”. Personal savings rates actually went negative as people had to take from their savings to pay their everyday expenses. It all ended with the second world war. The US had a ton of post-war surplus production. So they issued war bonds (effectively borrowing from themselves) and became mass generators and exporters of goods. (b/c of the war, it’s hard to say if the money printing really “worked”)

If you look at Barack’s current plan. It’s in line with the 30’s version of “printing” money, but it’s on a much more massive scale. Currently, he’s on record saying that the plan is to “print” $1,000,000,000,000 USD this year and for years into the future.

For perspective, he’s going to introduce into the money supply, one Canadian GDP. Note that the US is necessarily producing any more goods, it just has an extra trillion in cash floating around.

Which brings me to a really important point about this whole “recession” thing that’s going on.

All of the points made by FT are very valid, especially in the one-year time frame. However, for those looking out several years, there are lots of really awkward things going on that are going to affect the global economy as a whole.

Just a peek:
1. The US, the world’s largest economy, is operating unsustainable deficits. A trade deficit, a savings deficit and a budget deficit, all growing. They’re in an inflationary recession and potentially headed for hyper-inflation (1980s). The US cannot afford to raise interest rates. Of course, they also have the world’s most expensive army.
2. India & China are trying to join the middle-class world. That’s 2 billion people who want a quality of life on par with the Western standard. That’s placing a very high demand on commodities.
3. “The world” just lost a lot of “paper money”. I’ve read estimates in 30+ trillion dollar range worldwide. This is a really weird setup, b/c the world didn’t suddenly lose 30 trillion in “stuff” (commodities), a bunch of people really just defaulted on paying their IOUs (dollars). This has actually created a temporary deflation as there is not enough “cash” available.
4. We are pushing on an energy crisis. 4% of the world consumes something like 50% of the world’s energy.

So with all of these things that are “cheaper”, I think we have to ask ourselves why?

Note unemployment will linger for several years after a technical recession has lifted. If you are one of the survivors, there are deals to be had for several years after the resession as well.

But that stay 4 nights get 3 nights free is an amazing deal, and I’m sure I’ll kick myself later if my work picks back up soon.

There are opportunities in recessions, you just need the cash on-hand to take advantage of them!

I’m taking a trip to San Francisco next month; taking the train down the west coast (in one of those sleeper car things), one night in Portland, three nights in SF, flying back, and doing the whole thing for about $500. There are absolutely amazing deals out there right now.