Has anyone been affected heavily by the financial crisis? Or seen dramatic changes on your friends?

I applied for a developer position in a big software company, final interview was scheduled next week, but the company stopped all recruitment. No big impact on my life, but still, I feel I'm a victim.

So far I and no one that I know has had a problem, with the exception of my mutual funds taking a hit. However I believe that it is still too early to predict just where this meltdown is going to go but I have a feeling that it will get worse before it gets better.
The clients that I do work for are quite busy, but will that continue? They can see that the buying out a few banks and paying off their CEO�s is not going to solve the problem so it�s a waiting game to see what happens next.
However yesterday I did stock up on a bunch of food just in case things get really ugly.

I don't think it will get such terrible. Maybe the food will get a little more expensive and you end up with saving a few dollars, not worth the trouble.

My grandparents really suffered through the great depression. My dad so feared the political climate of the '60s that he built a fallout shelter in our back yard that connected to our basement and my mom stocked it with food. Many members in our family stocked food and knew canning pretty well. So I have been raised with an awareness of such preparation for potential hard times. I haven't really practiced much, lulled by sensations of security... but really, these past few weeks have made my hair stand on end!

Ultimately, the US food system will have enough food on on hand in wear houses for about 2 years, is my estimation. Let us pray our farmers and food manufacturers find a way to say a float over this time period and keep producing.

America not only feeds herself, but half the world that has to import food products. So people everywhere should be on guard. Third world countries of course will suffer the most.

I can think of many reasons why one should stock food in this day and age.
We have come to think of ourselves as invincible in a world that does
not fail but I suspect that there could be quite a few flaws in that thinking.

For now, we don't know where this financial disaster is going to lead.
Clearly, in the US many people who never anticipated such struggle are now
homeless or going to be homeless or forced into what may be considered destitute
living situations.

What happens if farmers cannot get loans, as they have always needed to finance the coming year of planting and farm maintenance?

What happens if some of the large canning companies cannot get money to meet payroll? or keep operations going?

Clearly for me I am concerned about my paycheck. My income comes directly from the government though medicare payment for service given to elderly patients. Will the government stay afloat? Will they just keep printing money endlessly? Will elderly patients across the nation be left high and dry in nursing homes as funding fails and caregivers are forced out to seek other employment?

Will the halt in construction work have an effect on all the supportive industries, products manufacturing and employment they have been sustaining?

Clearly the trickle down economics has not been such a great shake for the American People but the effects of disaster in the higher echelon of finance is presenting much more than a trickle down recession. It's speeding down the track heading for middle America like a steam freight locomotive.

Other countries will not fare so bad, but here in the US, access to credit rules for a large percentage of business and farming. No credit access. No production.

We shall see what we shall see.

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Re the assertiion:

"What happens if farmers cannot get loans, as they have always needed to finance the coming year of planting and farm maintenance?"

'always needed'? 'always needed'? How amusing

A huge part of the U.S. population is completely addicted -- and they
are apparently completely unaware of that fact. Also the world's
current economic problems are completely 'excessive credit' based.

The sub-prime mess it completely 'credit' driven. And it was the trigger
for the economic mess we are in.

Those who are not addicted to living on borrowed money are doing
just fine right now, although they will be forced to bail out those are
addicted.

__________________
Imagined knowledge kills learning . . .
The cure for boredom is curiosity...there is no cure for curiosity..

You may think it is amusing but it is the reality of the farming industry for the last 45 to 50 years, ever since farms have been consolidated and made into mega industries. Few farmers get by without loans. Many of the small family farmers, what is left of them, they often need loans too.

I have not said if it is right or wrong and I see nothing amusing about it. It is just a statement of the reality here in the US. Regardless of the addiction many businesses and individuals have to the need for credit the falling of the system could have profound impact on all.

If things don't start to iron out soon we may see a significant rise in crime, mass movement of people seeking food and shelter. Unless of course a fully socialist state is instituted.

Did you know that the congress was forced to pass that 700 billion dollar bill under the threat of martial law? Most of them didn't want to pass it but this is what was hanging over their heads. Rep. Brad Sherman speaks of the threat he and other congressmen received before the vote on CPAN. If martial law was to be initiated congress and the senate would have no power at all. Of course we all know that the only person capable of giving such a threat is Bush. It is an Executive Branch privilege since the inception of the Patriot which allows the President to call martial. Apparently he felt the danger significant enough to usurp the will of congress through threat. Do a goole or yahoo search on Sherman and you will find the clip where he states the threat he and others received...this is the shadow government in action. Your freedom was taken away on this day.

The credit crunch may cause great depression - the worst result I can imagine. Severe food shortage is unlikely since there are not dramatic climate changes.

Arrow: your post makes me worried. I have been working at home for 5 years, maybe I should take it more seriously and get a job for more insurance. I tried to find a job a few weeks ago, but mainly for social connection.

Donee: I like your signature.

Kevin,

I don't know what it is like in your part of the world, but these last few weeks surely we have all seen how fragile the economic system is and how devastating it has become for millions.

I have always maintained caution in my financial strategies. Since the financial world has been far too complex for either me or my husband, (who are both college educated BTW) we have been most conservative, only venturing out a couple of times in stock gambles (which we were most surprised to have won in those games) One of our most important investments has been in gold that we hold, not some institution. Other investments have been in the most stable investment programs, low risk, etc.

My 401k is not growing right now, as it has been over the last 5 years even though I throw money in it every month. I have a very low risk portfolio. It is my one gamble that I continue with due to employer matching funds and tax shelter on deposits into it. So over the next year I don't stand to loose much if I loose, but the gamble is here...
every month I keep purchasing shares and right now at a very low cost so I am purchasing more shares than I was last year with the same amount of money. If the market does go up I will do well.

It is in my opinion, that if you do not want to be blown in the economic and political winds of change that is dictated by a largely insane system and insane people, you better do some serious thinking and be prepared for potential realities.

Since we don't know where all this will end I do think we should prepare for the worst and hold thoughts for the best. People in this day and age are pretty good at holding positive thoughts in the market, until something like this happens any way. They fall severely short on preparing for the worst. Its like they dwell in a dream of false security. Believing always in the state, the institutions, the system. They have lost memory of how our ancestors have suffered and just how hard they had to work to survive.

Kevin: you mentioned that you have been working at home for 5 years and were wondering if you should get a “real” job.

Well here is my story. When I started out I was working with a large company for 13 years, when it was sold I went with the company that bought it and stayed with it for a few more years. I then when to work for a guy from the original company who started his own company. During this time I started a couple small companies of my own but never did much with them, however I also was doing consultant engineering and building prototypes for different companies. With time people became aware of what I could do and I would get recommend to someone else who had a problem. Eventually I wound up doing this full time.

Awhile back one guy that I was doing a lot of work for asked me if I would like to work for him full time. It was a very tempting offer, no more feast or famine between jobs plus paid health insurance. I seriously considered it but finally said no. The problem was by this time I had become use to my independent life style, I could get up in the morning when ever I wanted, if I got tired of working on something I would stop and do something else. On the other hand I have no problem being in my shop working a project at 10, 11 o’clock at night, or week ends. Thus the thought of going back to a ridged 9-5 job was now as terrifying to me as the person who feels he might lose his 9-5 job.

So if you enjoy what you are doing, and that is the key here you must enjoy what you are doing, then by all means keep on doing it. Let those who could use your services know that you exist and offer to help them in anyway you can.

Mad Scientest: Many thanks for sharing your experience, it's surely very helpful. I did enjoy the freedom very much, but I have two big problems:

- I'm not self-disciplined, I may work very hard or don't work at all for a long time. I have wasted the past two years.

- I don't serve clients directly, I seem to have forgotten how to communicate with people - It's getting worse and worse.


The first problem may not be only because I'm lazy, after a long time working alone, somehow, I just don't want to do any work.

Hopefully, I will be recharged very soon.

Kevin, are you in the US?

No, I'm from China.