Let's share how we're preparing for Depression II...

[CoffeeCat]

Anyone who doesn't prepare for very dire circumstances, is going to suffer greatly.

It's apparent that people who aren't preparing--are similar to the passengers
on the Titanic who didn't run to a lifeboat, because they just couldn't believe that
such a masterful piece of modern machinery could sink.

This ship's going down, people. That's no longer a far-off-possibility. It's happening.

We've been stockpiling essentials for a while. We're keeping cash at home and
we've chopped non-essentials from our budget (newspaper subscriptions, fitness-center
membership). We're also spending very, very little.

We're also talking with our neighbors a lot more, before winter comes and we all retreat
indoors. We'll all need each other, and we'll need to share--so it's good to keep tabs
on others who may need you--and vice versa.

How about you? What are you doing to prepare?

[DontTreadOnMe]

1. Pay Off ALL credit card debit... now.

no more monthly payments for me. I will keep the cards open, but with zero balances.

[AndyA]

4. And the credit card companies will close your accounts for non use.

I think credit cards should be used regularly, but for smaller purchases that can be paid off monthly, so no interest accrues.

That's what financial advisors have told me to do. You never know when you might need credit in an emergency, so it's nice to have some credit available.

[mr_hat]

7. I was wondering about just defaulting on cc debt.

If no credit's available and jobs are non-existent, why send what I have left to BofA (or whoever). What's the point of a maintaining good credit rating?

[tigereye]

34. I don't think the lack of credit is a permanent state...

there is always some benefit to maintaining a good credit rating for when things improve.



(this is funny, me as the voice of financial reason!) :rofl:

[NJGeek]

50. umm that kind of doesn't make sense

because if banks close and things really go belly up, you might not have to pay it, or get better terms... why give them your cash now? especially if it is a low rate card, you should pay it down but not necessarily pay it off - especially if you could use the cash to shore up immediate term needs (food, water, electricity, gas)

[AndyA]

2. Why do you hate America?

"You should be out spending! By not spending, you're responsible for slowing down the economy! Everything will be just fine if everyone just keeps doing what they were doing..."

I kid you not, someone said this to me today! The idiot was overlooking the fact that with credit lines gone, the source of fuel for the spending spree is gone.

People really are too stupid to live... :(

[CoffeeCat]

13. Ok, ok....I'll go---

I'm off to Pier One--to buy some $40 candles and a $200 silk ottoman that will fall apart in three months (but
I can always buy another one, right?). I'll use my Pier One store card and take 3 years to pay off these items
at 20 percent interest, paying about $1,200 for them once I've paid off my $10 monthly payments. Whoo hooo!

My next stop is Home Depot. I need new granite on the countertops and limestone in our master bath, as well
as a glass back splash for the kitchen and a $5,000 restaurant-grade Wolf stove. Yippee! I can put it on
my Home Depot card!

Ok, now I'm hungry from all of that shopping. Must go to Cheesecake Factory for lunch. $30 on the Mastercard.

Clothes. I need clothes. You definitely need comfy shoes if you're going to shop all day. Six pairs of
Clark's in various colors should be fab. Put it on my store card.

Time to go home. This is draining. I need a vacation. Remind me to call the bank--to borrow $7,000 against our
home---cuz we're going to Atlantis. I hear Oprah goes there! All that shopping requires a week of luxurious R &R.

Am I a better American now? :)

[AndyA]

48. Only if you go buy a new Escalade to do all that running around in first!

An Escalade would look so nice in your driveway...

NOW you're a good American! ;)

[RichGirl]

53. Atlantis????

You mean the ancient city that is now under the sea?????

[Zensea]

3. If there really is a Depression ....

preparing isn't going to do you much good.

[CoffeeCat]

17. Stockpiling canned goods....

and essentials (like toilet paper, toothpast, shampoo) can leave you not so vulnerable.

[Better Believe It]

55. Deflation Will Drive Those Prices Down As We Slide Into A Depression

So why pay for and stockpile those items now?

[CoffeeCat]

60. Well...

...one theory is that people won't have the money to buy those things.

So, a stockpile insulates you from needing some things, if you are low on cash or if
you should happen to lose your job.

Also--I combine coupons and sales and I get tons of stuff for free. I stockpile
when I can get things for free or nearly free.

I know what you mean though, and your point is well taken.

However, I don't think that people who were struggling during the Depression, were
suddenly excited that the price of everything was so low. The problem was a lack
of money, not high prices.

[eShirl]

19. oh yeah, just ask anyone who survived the Great Depression

:eyes:

[iiibbb]

24. Some of you need to go do some reading about the history of the Great Depression.

Most of us will be fine.

I hope to prepare by boning up on my charity.


--added... still nobody knows how far down this is going to go yet.

[Zensea]

31. I've done plenty of reading about it

and my father lived through it -- he lived in Oklahoma and then Los Angeles during the 30s when he was a teenager -- so I heard first hand accounts of the Dust Bowl from him. :)

[CoffeeCat]

42. Ummmm....

...the Great Depression happened because an unsustainable bubble popped.

I'd say the parallels are quite similar, to what is about to happen to Main Street today.

The Housing bubble has all ready popped. Now, a major portion of our economic growth--which
was propped up by credit card spending, home-equity spending and other borrowed money--is
about to collapse.

That's a massive, downward shift in aggregate demand.

If anything, this is worse than the Great Depression, because most people in the 1930's--didn't rely
on credit cards and they didn't borrow money against their home to pay for vacations and furniture.
People were humble and got by on way less, back then.

This bubble is bigger---and the explosion is going to be more massive this time.

What does this mean? Hell! I don't know. But I'm looking at the facts and seeing pretty dismal
consequences.

I am not afraid or upset. I'm looking at this from a problem-solving viewpoint. We need to be calm
and prepare--do what's needed to keep yourself--and your family--safe.

[rainy]

5. my mom has some dementia and will need lots of money in

the future. She has about $330,000 in investments right now. Should she pull all of her money and put it in a safe savings account?

[maseman]

18. Is it in stocks?

I would put into CDs and Money market funds in different banks so that way if one would fail you'll have money in various banks.

[rainy]

41. Her money is tied up in two accounts. One is a money management fund

and the other is some kind of mutual fund with supposedly relatively safe investments.

[maseman]

54. Not FDIC insured but probably fairly safe

[CoffeeCat]

20. I'm interested in hearing what people...

...smarter than myself have to say about this.

We are struggling with the same issue. We have our 401k in the stock market. We've lost 30 percent.
So, do we switch the 401k from the stock market, and into a MM fund--or do we stay put.

In my opinion (and I'm no expert), we are just starting the crisis. We are nowhere near the bottom.

I think it depends on how old you are. If your mother needs this money, in the next 10 years, I would
get it into a money market account. Even an ING account. Those accounts pay around 4-5 percent.

I don't recommend cashing out a 401k, because of the 30 percent penalties for taking the money out before
you retire. We are looking into re-routing the money from stocks to a money market. My husband and I
are contemplating all of this now, but we don't retire for 2 decades.

I hope others have expert advice for you.

[Bicoastal]

6. I'm learning to play the old-timey banjo...

....plus I got a really nice bindle picked out.

[davsand]

8. I'm dropping trou and grabbing my ankles.

I am also looking for a source of cheap lube. I am told Crisco works great and it is shortening.

:evilgrin:


Laura

[OwnedByFerrets]

61. Are you too tall?

:rofl: Sorry bad joke.:P

[elocs]

9. Your entire thread depends upon everyone accepting your premise and its degree

without question. If you want more of TEOTWAWKI than you could ever want, and some very useful info, go here: http://peakoil.com/forum8.html This could keep you busy for days. For economics and finance try here: http://peakoil.com/forum33.html

[stuntcat]

10. well I'm glad we're not in debt..

We've been learning for years to get by without consuming much. The things that would really do me in are if I didn't have clean water and if I didn't have power to run the refrigerator.

I'm a pessimist so I'm ALWAYS expecting the worst! But I still hope it won't come down to it.

[harun]

11. Time to make some Amish friends (n/t)

[crankychatter]

12. truck patch, guard dogs, concertina wire, k-rations, fall out shelter, weapons cache'....

silly billy

we'll be sharing scraps in the camps

http://en.wikipedia.org/wiki/Man's_Search_for_Meaning

I only want to be morally sustained

I will be at ground zero, happily ladling soup, and bringing others a moment of light, love and laughter

what else matters?

[eShirl]

14. we're poor, so my "emergency pantry" consists of bulk dry beans & legumes, grains,

ramen, flour & yeast, dry milk powder (reminds me, must get powdered egg whites)

Almost forgot: sprouting seeds and a second-hand sprouter! But you can grow sprouts in any old glass jar.


Also have been learning crochet, just got some inexpensive plastic knitting looms at Wallyworld, and have a simple hand-spindle for spinning wool that I haven't tried yet... think I'll try that out soon..

[DevonRex]

29. We were poor when we were in college, with 2 babies. And

I learned how to stretch meals like you wouldn't believe. Yep, dried beans, brown rice, flour and yeast, and oatmeal will see you through just about anything.

You can start your own vegies indoors from seeds without even having to buy them. Just get the seeds from, say a tomato, let them dry for a week or 2, and then you can start your own plants from them. Peppers work great that way, too.

[melody]

15. We aren't "going down"

We will all survive. Things will be lean for many of us but we'll get through it. To depict this as a financial Armageddon is overreaching.

And I say this as someone who paid off her house, paid off all her bills, got rid of all non-essentials (except for cable ... I gotta have the internet) and put away some money. I also put together a local circle, made a list of local resources, stockpiled and
looked into getting a gun (sad, but true).

That said, it's *not* the end of the world. Things will not be as bad as the bad scenarios are depicting.

[Mojorabbit]

25. I am not so sure

I think it is going to be very bad. I see many more foreclosures when those millions of mortgages scheduled to be reset in 09 become due on top of those that will happen when more people lose their jobs. We do not have a manufacturing base anymore. 80 percent of our economy is service oriented.
Without good effective leadership from the top we are going to be in a world of hurt.

[melody]

32. It has as many unique attributes that are positive as it does negative ones

We will get through. With an Obama administration, we just might get through it quite nicely.

[eShirl]

27. hope for the best but prepare for the worst

[melody]

28. That's my motto :) n/t

[stuntcat]

59. yah

every day I think I can't be any more horrified by the news :*

I do hope for the best, mainly for the sake of the animals/pets/critters, but nothing will surprise me from now on.

[OwnedByFerrets]

62. Its nice to be optimistic, but you have NO way

of knowing this for sure. There could be tens of millions losing their homes. It really COULD be that bad.

[melody]

63. Of course it could be but odds are better that it won't

Optimism helps you survive. Pessimists die ten years earlier and can't cope any better with crises than optimists. Besides, simple logic says we have as many reasonably good possibilities as terribly bad.

But if you really want to give up hope, by all means do so.

[Alter Ego]

16. I have a very secure job, no credit card debt, no bills other than student loans

and a car payment, and no rent (I live at home).

And this shit still scares the piss out of me.

[CoffeeCat]

33. I like that the student loans....

...can be placed in deferment--if you tell them you are having financial hardship.

So, if you do run into an emergency--you can get that monthly bill off of your plate
for a few months--if things do get tough.

So glad you have a very secure job. My husband's job is not secure. He works for a high-tech
start up that is financed by venture capital. Yikes.

[iiibbb]

21. Hopefully just keep my job... and zero balance on cards (as always).

[DevonRex]

22. Learn how to grow some vegetables indoors during the winter.

I've started tomato plants. You have to start new ones every 2 weeks and you have to pollinate them yourself. You can use an electric toothbrush placed against the stem, which makes the pollen fly, or you can do it by hand with a small paint brush. I go to the Colorado State University website on how to grow vegies and herbs indoors. It's pretty helpful. I grow most of my own herbs now, so I don't have to spend money on them and they're much better anyway. If you have neighbors who are interested, then each house can have different vegetables and herbs so you can trade with each other. It's a wonderful community-building opportunity.

Also, learn how to stretch your protein. For example, if you do baked chicken then you can make chicken and rice soup with the little bits that are left over. I always used the meat from the wings and thighs for that, since my family didn't care as much for the dark meat. But in a soup, with lots of vegetables and spices added, they loved it. That way, you have created 2 healthy meals instead of just one, and in fact you'll have enough soup for the next day's lunch, too.

Always have dried beans and brown rice in stock, as well as oatmeal. If you don't have fruit trees in your yard, this would be a good time to plant some. Same with raspberry bushes and grapevines. This economic crisis may last a long time, so think ahead. If you plant the raspberries and grapevines this fall, you will probably have fruit next year. The fruit trees will take longer to produce but we'll probably still be in a recession when they do.

From now on, anything I plant will provide some sort of food for my family. It only makes sense.

[eShirl]

37. sprouts are another good indoor vegetable

but not everyone likes them

[DevonRex]

39. Bean sprouts? I love them. Thanks. :)

[vi5]

23. The same way I always have...

I've always lived as though financial disaster was seconds away. I think it comes from graduating college and entering the job market during a low point in 1992 so that I know what it's like to work at all "levels" of employment" and to know what it's like to live on minimal income even as a college graduate.

Carrying no credit card debt month to month. Not spending a lot month to month so that my family has enough money saved to pay the necessary bills (mortgage, food) during any lean times if my wife or I should lose our jobs. Just learning to live frugally.

[msallied]

26. Plastic sheeting and duct tape. That's all you need. :)

We're cutting back on spending too right now. But, we're mostly doing it because we have no money anyway. Luckily, hubby's job has been as demanding than ever. I'm keeping my fingers crossed.

[tigereye]

30. well, fortunately the house is almost paid off and the cars are already paid for

we might put off buying a new furnace unless we can get a better price and are paying off all the credit cards (we only have 2)


I am trying to line up more contract work... but I don't know that the bottom is exactly going to fall out quite in the way you are saying, though. I'm not sure we are headed for the dark ages just yet.

:shrug:

[SoonerPride]

35. Please make sure we call it The Republican Depression

Not Another Depression or Depression II, but THE REPUBLICAN DEPRESSION

[KamaAina]

64. But the first one was a repuke depression, too!

I'm so confuuuuuused!

[cjsmom44]

36. RE: Old House & Land

We have a 200 year old home on acres of prime land...enough to feed a family on....and a barn..Now only to learn about homesteading?

[weezie1317]

38. I'm volunteering for Obama! And...

paying off debt (student loans, construction loan)


I'm worried about my brother who is a house painter (runs his own company). I have room in my house for his family if it ever comes to that.

[NickB79]

40. I've been preparing for the past 3 years

I've purchased a chest freezer and stock it full whenever there are sales. I also add in frozen fruits and vegetables from my dad's farm.

I work a huge garden at my dad's farm, growing organic and heirloom vegetables as much as possible. I freeze, jar and dry a lot of it to take home, and store the rest in my dad's cellar. I built and "cooked" a large compost pile this summer, adding approximately 500 lbs of coffee grounds collected from Starbucks (it's like crack for earthworms). I've also planted more fruit and nut trees to compliment what are already growing there. I've planted apples, peaches, apricots, and hazelnuts (all now fruiting).

I've purposely stayed at my job because it is very secure (food safety testing), even if it isn't my dream job. Our business has actually been going up steadily the past year. Even in a depression, people have to eat safe, clean food.

Paid off all my credit cards, and now pay them off at the end of each month. The car I purchased gets 40 mpg highway, and is completely paid off as well. I drive 60-65 mph instead of 70-75 mph to save fuel (I can get 45-48 mpg if I drive 55-60 mph, but that is rare on the local highways).

Eating in much more often. We invite friends over and cook dinner for them and watch movies at home instead of going out to dinner and a movie theater. We can feed and entertain 4 people on less than $20 a night.

My fiance and I actually experimented last winter with getting through an entire Minnesota winter without turning on the heat! We live in an apartment, and they no longer cover the heating like when we first moved in. We were looking at $40/mo in heating bills. So, we weatherstripped the windows, patio and A/C unit, cooked often, ran the humidifier, ran a space heater sparingly, and wore sweaters and socks. I even stacked all my pots and patio furniture in front of the patio door to block drafts. The heated garage below us, and the insulating effects of neighboring apartments kept the temperature at 60F even when it was -20F outside. Oddly enough, my houseplants never looked healthier!

I go to the local libraries all the time now instead of purchasing books or CD's new. If I find something I really like and want to add it to my personal collection, I check out the thrift stores, pawn shops, Amazon and Half-Price Books.

I use the free weight room here at the apartment complex and do all I can to stay healthy. I have excellent health insurance through work, but that might not always be there. An ounce of prevention is worth a pound of cure, as they say.

And finally, if anything horrible were to happen (such as rampant unemployment to the point that even I get laid off), my fiance and I have already agreed we will be willing to move to my dad's farm and tough it out there. Farming is hard work, but the farm is completely paid off, profitable, and will keep a roof over our heads and food in our bellies.

[Zenmaster]

43. I'm continuing on with my life and not panicking.

In fact I'm buying a house and changing jobs.

[fed_up_mother]

44. Making sure we all have good, sturdy clothes and shoes for all seasons

I figure we'll scrape buy well enough to buy food, but new clothes will be a luxury.

And I am buying food like rice, beans, and olive oil in bulk. I'm buying fans for when we can't afford to run the air conditioners, since it gets very hot here. I think I'm going to buy a couple more blankets for the winter, warm socks and slippers, even though our winters aren't really cold. We can go without heating if we must.

And if things are going to get even worse than that - well, there's no way I can plan for it. I don't live out in the country and can't go completely off the grid willingly. (Assuming there is a grid.)

[DevonRex]

45. Don't forget cans of evaporated milk or boxes of dried milk. I had

forgotten them until somebody up thread mentioned it. Look into growing vegetables indoors, too.

[rug]

46. I'm burning Republican yard signs in my furnace.

[RTFirefly]

47. I'm screwed, regardless.

I'm halfway through getting my bachelor's degree as a full time student. Even if the FASFA loans are still there, they're not going to be enough. No private loans, no work, no assets, no money ... what's going to happen, are they going kick everyone who's not having mommy and daddy pay for it out of school?

And the Titanic is a bad analogy. There weren't enough lifeboats, and the only ones who did get to the lifeboats were rich. Then again, maybe that is a good analogy. Unless you're rich going into a depression, you're boned.

[RichGirl]

56. Actually...no.

During the depression, it wasn't poor people jumping out of windows, it was the rich. For a lot of poor people it was business as usual because they were already frugal and living off the land, working on farms. I once saw a documentary of black millionaires. Not singers, ball players, etc...they were business people. They had worked all along, saving from their meager salary, when the depression hit were able to buy property and land dirt cheap and build companies. The rich had lost everything. A lot of the cash was in the mattresses of the poor.

Keep in mind, the depression wasn't just a financial set back for the wealthy, it was emotionally and psychologically traumatic. A lot of ego and self image was wrapped up in wealth, not to mention losing that lifestyle.

A depression can often be a re-distribution of wealth.

[graywarrior]

49. Paying off credit cards, looking for someone to split the rent with us

supplementing fuel with wood heat, cancelling health club membership, stocking up on rice and other grains, soaps, cat food and litter, and getting ready to walk everywhere....which is a pain up here in the north country.

Guess we'll be cancelling cable tv and land phone. Keeping cell and internet. Trying to decide whether to keep Mr Gray's biz phone.

We met a stockbroker last night who hasn't slept for 3 weeks. He was freaking out and in total terror of what is going to happen. He said that once the credit card companies stop allcredit, the country is fucked. Wish I'd never talked to him.

[roseBudd]

51. I have already begun cooking dry beans, barley, making yogurt with powdered milk

[KayLaw]

52. I've read a lot.

I've read books about the Great Depression and frugality. I've also explored the survivalist sites for ideas. We just stay away from debt and live within our means. There are some interesting videos on YouTube about Great Depression cooking that feature an older woman who survived the GD. Lots of pasta and potatoes.

[Marsala]

57. This is ridiculous

A recession, depression or even Great Depression II is NOT the same as the total breakdown of our society. Our standard of living may drop considerably and unemployment may shoot up, but things will for the most part keep on going as they've been going.

[Max_powers94]

58. What am I doing to prepare?...

Hiding under a rock until Jan 2009