Treasury Sect'y warns of "tough times"

**suki** · 07-21-2008, 08:44 AM

Paulson said the number of troubled banks will increase as they struggle to cope with big losses on bad mortgages. The government this month took over IndyMac after a run led it to become the largest regulated thrift to fail.
"Of course the list is going to grow longer given the stresses we have in the marketplace, given the housing correction. But again, it's a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation," he said in broadcast interviews.
Paulson used appearances on the Sunday talk shows to tell people that deposits up to $100,000 are fully insured. He said no one has lost a single penny on an insured deposit in the 75 years that the Federal Deposit Insurance Corporation has operated.
"We're going through a challenging time with our economy. This is a tough time. The three big issues we're facing right now are, first, the housing correction which is at the heart of the slowdown; secondly, turmoil of the capital markets; and thirdly, the high oil prices, which are going to prolong the slowdown," he said.
"But remember, our economy has got very strong long-term fundamentals, solid fundamentals. And you know, your policy-makers here, regulators, we're being very vigilant."

"Our first priority today is the stability of the capital markets, the stability of the system. And these institutions have investors all around the world ... and those investors need to know that we in the United States of America understand the importance of these institutions to our capital markets and to our economy and to our housing market," he added.
Paulson acknowledged the U.S. is continuing to lose jobs, though he said the $168 billion economic relief plan approved this year has created jobs that would not otherwise exist. The plan included tax rebates for people and tax breaks for businesses.

http://money.aol.com/news/articles/_...527x1200287482

In reading this article, I felt Paulson was overly optimistic. But, that's the position I would expect him to take. From what I've seen, the third quarter economic indicators are not great and the stimulus package did not have the intended effect. I believe our economy is going to tank even more than it has already, that things will become even tighter and the situation will last for years, not months.

Thoughts?

**PrairieRose** · 07-21-2008, 10:46 AM

I do think it's kinda funny that the gov't is telling us that the economy is so strong

. Propaganda is a wonderful thing, don't you think?

I personally choose not to watch the news daily b/c of the repeated reports on how horrible things are. Ok, we're in a recession could be a depression but I just don't need to hear it 47,000 times a day. We've had tough times before, albeit not depression era tough times in most of our life times, but I believe we'll all learn some hard lessons and come out of this thing smarter than ever. Perhaps it was time for a wake up call for those of us who've been sleep walking through life, enjoying our $4 latte's and take out pizza almost daily. I just keep thinking "That which does not kill you makes you stronger". I read a quote the other day about worry. I'm going to flub it up but it was something like "worry is a negative prayer over something that hasn't even happened yet". I'm not gonna worry myself sick over it. It won't make any difference at all. Prepare for the worst, plan for tomorrow.......but no need to worry, worry, worry about anything really.

**suki** · 07-21-2008, 10:53 AM

I should have said 2nd quarter indicators weren't great. We've just started the 3rd quarter... it's not looking very good so far.

I agree with Prairie Rose, I'll not waste energy worrying... just spend that energy preparing in whatever way possible.

Today, it's harvesting and canning green beans!

**shortstack** · 07-21-2008, 11:01 AM

I think the scariest part is not knowing what is going to happen. If we knew we could all make the right decisions.
I am praying for the Lord to care for us but at the same time am being proactive with the knowledge and skills that He has given me

Andrea

**PrairieRose** · 07-21-2008, 11:28 AM

Originally Posted by suki

Today, it's harvesting and canning green beans!

Hey Suki, I can remember canning green beans w/my momma and her 'secret ingredient' for the best tasting green beans was a big ol' dollup of (are you sitting?) bacon grease. Yum. (very heart healthy....

) Do you use bacon grease?

**suki** · 07-21-2008, 02:53 PM

Yes, I do! Sure does make 'em yummy!

**JanieD** · 07-21-2008, 05:30 PM

Didn't go to the link... just can't (need my head in the sand today to cope). So my post may be a little off. I am somewhat concerned that I'm not preparing enough for the rough times ahead. I really need to stock up my cabinets with food & household items. Seems life keeps me from get to the store for those sale items a lot. Need to get a plan in motion very soon. Otherwise, I'm avoiding debt & saving for future needs as basics may cost quite a bit more from now on.

As far as savings, investments & such, I'm not sure what can be done to keep my piggy bank safe. I hope this is just a cycle & the future will help off set any losses.

**fuzzybunny** · 07-22-2008, 12:29 AM

I'm focusing all my energy on clearing the last c.c. then no more debt. Since I am single and have no kids I'm not too worried. If I have no debt and a little savings I would be okay short term in case of job loss and be able to take anything and muddle through. If it actually did get "really bad" then I would go stay with my dad in the hills. He's off the grid and we would make do... however I'd rather not use an outhouse and/or composting toilet if I don't have to.

**PrairieRose** · 07-22-2008, 09:39 AM

Originally Posted by fuzzybunny

If it actually did get "really bad" then I would go stay with my dad in the hills. He's off the grid and we would make do... however I'd rather not use an outhouse and/or composting toilet if I don't have to.

I'm so trying to talk Gripey into our own windmill here in our small town. I want to build a solar heater for our pool (which wouldn't be hard at all and presently haven't been heating it save the solar blanket but early in the year it's coooollldd). I think I'm gaining ground after our large electric bill this month.

**freyadog** · 07-22-2008, 10:02 AM

Originally Posted by PrairieRose

Hey Suki, I can remember canning green beans w/my momma and her 'secret ingredient' for the best tasting green beans was a big ol' dollup of (are you sitting?) bacon grease. Yum. (very heart healthy....

) Do you use bacon grease?

Are you saying that you put the bacon grease in the green beans before you put them in the canner? If so what is a big ol' dollup?

**PrairieRose** · 07-22-2008, 10:16 AM

Originally Posted by freyadog

Are you saying that you put the bacon grease in the green beans before you put them in the canner? If so what is a big ol' dollup?

Yes mom would put the green beans in the jars add some water and 'about a heaping teaspoon' (big ol'dollup...it's a technical southern term....lol) of bacon grease in each one. I mean makes em' mouth watering, melt in your mouth good. (Be sure to take your Crestor after eating....rofl)