Is an economic depression possible?

[Luv2BeFrugal]

Ok, so I'm a worry-wart...

I keep hearing blurbs on the news and seeing things here and there in news articles about possible depression-type situations... "Severe recessions" and such.

I just wondered what you all were thinking on this? Should I be concerned or just ignore the stories as hype?

Thanks...

[sdrjeolsen]

Kathryn,

You're not alone, I think about that alot. My parents were depression kids, so it has been ingrained in me to always be ready for the worst. I think about it a lot. I think that's why I find that era of history so interesting. It took the people by such suprise, they were on the tail end of a great economic boom. With all the news lately about subprime mortgages and such, I do get a little concerned. I try not to think about it too much, I try to remind myself that usually the news over hypes things...like bird flu, major earthquakes....since I can remember (probably late 60's early 70's), California was at any moment going to fall into the sea due to a major one. So I don't put a lot of stock into the media's ideas. I think a lot of it is just hype for ratings.

That being said, I do believe it is good to be prepared. That's why I hate debt, it makes me feel unprepared and tied to the economic system. Now we just got into a heckuva huge mortgage that we'll be paying on for some time, it makes me diligent about making extra payments on it. I'm always on the lookout for things I can do and prepare just in case. I have lots of extra food in the pantry, case of beans, case of rice, etc.. When we moved the movers were convinced we were Morman because of our humongo food supply. We have a well and I have provisions for gray water recycling if needed and rainwater usage as well. A wood stove will heat our house if need be and we have trees to last us years if it came to that. Now I have chickens too. At times I feel weird thinking the way I do, but better to be overprepared than under prepared.
I wouldn't say I live in worry or fear, I belive my faith in God keeps me secure, I know that He knows the future and has promised that my future is bright. but at the same time the Bible talks about the ants and grasshoppers and being prepared, not being slothful.

I also remind myself that people lived through the depression. It was hard, but they most say it was the best of times as far as family and togetherness and all pulling together. I remind myself that I have skills to be frugal and to make ends meet. So do you. I think if the situation presented itself, you would be a leader among your peers as far as helping and giving ideas as to how to stretch a dollar. You have more in you than you realize, we never know till the heat is on what great strength resides within.

I guess my advice is be prepared to the best of your ability, but don't worry.

[Darlene]

I always say never say never and save for that rainy day. I don't dwell on things but try my best to make sure that I'm living below my means and have a cushion & a plan. We just like being self sufficient and live our day to day lives that way. Things are always changing & anything I can do to be able to go with the flow makes me & mine happy campers.

[pkellyc]

They say a recession is headed our way. I believe it, Dh is on 40 hours for the first time in 22 years. We have always lived on 40 hours and thank goodness for that. Some of his coworkers are already having problems.

I believe things are going to be slow for a while but a depression? I doubt it.

[baxjul]

I believe that we are headed into a depression! I've believed that for a while now. I think that we could be very self sufficient in a depression, and we do have a small cushion.

[jamie79]

I think the country has been in a recession for quite sometime now. A depression is a different thing. Will we be in a depression like the Great one. If we keep spending untold billions on the war, not make any new jobs etc. then yes we could be.
Dh will not be unemployed. Thats an upside to being military so I know we will always have his salary until he retires

[shadomoon]

I've always been of the process that you prepare for the worst and hope for the best.

I believe we have been in a recession for a year or two now myself. But you know, the people who went through the depression, didn't see themselves in a depression- it wasn't called that until it became history.

Sometimes you don't realize how bad it was until you come through to the other side.

[frugalfarmwife]

I've watched our own town here lose lots of business over the borders, housing go stagnant and the horse market (a definate luxury) go into the tank, the price of EVERYTHING go up in farming, farms disappearing, and now even watching the company I work for attempting to push out the older full time employees to replace them with cheaper part timers. It's tough out there, so yes we all do need to be prepared for whatever the future brings.

I'm not personally worried, hubbies in an industry that is continuing to grow every day and his pension is separate from SS and will be there, and we raise most of our own food, heck even have our own generator.

I do worry for many friends and others we know that are already struggling and don't "get" frugal ways, many are already on the brink of bankruptcy, rising prices on everything without out rising income will be the downfall of a lot of them.

kj

[FreesiaE]

Maybe, but it will be nothing like the Great Depression due to the FDIC.