Debt ceiling crisis and you

SFM in KY · #21 07/28/11, 11:27 AM

Our monthly income is solely dependent on the government, two SS checks and a Navy retirement check. If those are received, little would change for us other than the increased costs due to inflation, which we already deal with, of course, since that is fixed income, definitely not adjusted for rising costs due to inflation.

stamphappy · #22 07/28/11, 12:14 PM

We are in the same boat as SFM in KY ----- DH gets a Navy retirement check and he works for a Federal Gov't Contractor. I have a temporary one-year-only job as a 1/2 time teacher. We do have enough money saved to pay the bills for maybe one year depending on inflation.

geo in mi · #23 07/28/11, 12:48 PM

I appreciated WIHH's comments about the Minnesota shutdown. Here in Michigan, it has been a slow, gradual decrease in the overall economy, what with the domino effect felt earlier by the automotive decline. As for the gov. here, I think Michigan will see a further type of decline by the reductions in the state budgets. This area seems to have declined much earlier, so what you see is what you get, and will be that way for a long, long time. No prospects of any recovery, no great increase in job growth, and certainly no pay increases for a long time. In this county, one can drive around and see dozens of vacant houses.

With all the joblessness and poverty around here, I'm surprised we haven't had that great of an increase in the crime rate(no zombie hordes yet, anyway) The sheriff gave the monthly crime report for our township and it was up somewhat, by the numbers, but not drastically. I'm also surprised that I haven't seen too many people tearing up their backyards for gardens--but I have seen a lot more chickens in the strangest places(usually in someone's front yard, or along the roadway).

I do live in a sort of lake/resort area, where many people go away for the wintertime. But I haven't had any locks on the doors yet--probably will do so as wintertime approaches. And get some more practice with the twelve gauge.

geo

starlady · #24 07/28/11, 12:52 PM

In the short term, probably nothing - although I'll be super upset if they close the national parks next week, as I've got plans to see friends in Yosemite. In the medium term, I maybe won't be able to buy a house in the next 2-3 years like I'd planned.

In the longer term, if the economy crashes and the state of South Carolina goes belly-up, I could lose my job (college prof) since I don't have tenure yet.

Classof66 · #25 07/28/11, 01:21 PM

When we had the high interest rates in the early 80's, the money markets and cd'd were paying incredible interest. One did not need to be incredibly wealthy to benefit from this. There was good competition for a savers money. No one ever mentions this. My dad was a frugal person, had always been. He really made no changes in how he lived, but he had inherited money, which he had worked darn hard for, and he put it in CD's and did very well.

Mike in Ohio · #26 07/28/11, 01:41 PM

I think it will be a mixed bag for me personally but presents interesting opportunities. It's a short term/long term issue.

1) 401k and IRAs will take a hit but I think that will be short term. I plan on doing nothing with what is already invested as there aren't any good options. Pulling out of stocks/bonds and putting into a Money Market account just puts one at risk in the Money Market account.

2) Our mortgages are fixed rate and well on their way to being paid down. It might impact our ability to buy additional property (we are always interested in adjacent parcels at the right price). We don't carry credit card balances nor do we have any variable rate debt.

3) A significant drop in the stock market represents a buying opportunity in my mind (for select stocks/verticals). Same goes for commodities (think oil and natural gas).

4) Longer term I expect to get hit for more taxes.

5) Many of the short term impacts will depend on which things Obama decides not to pay. Hard for me to predict.

6) One big wild card is what China will do. They could dump U.S. debt on the open market and really cause some interesting outcomes.

Just a few thoughts and avoiding the politics.

Mike

Rickstir · #27 07/28/11, 01:42 PM

I have moved 80 % of my 401K's into fixed income at 4% interest. I am retiring in 2 months. I will teach online classes from the farm. This results in a $600 month reduction of expenses ( I have a rather long commute). Two freezers are full, pantry is pretty full. 300 gals of gas in the tank. (Wish I had a small diesel storage tank). Deer and tukey are plentiful. Lake is full of fish. An average garden this year. i have been buying ammo for 3 years now and have a good inventory.

ronbre · #28 07/28/11, 02:34 PM

other than people passing on their costs in higher prices it won't affect me at all..I don't collect or pay interest

ronbre · #29 07/28/11, 02:41 PM

put that TJ quote on my FB wall

FarmboyBill · #30 07/28/11, 04:19 PM

My brother inherited the farm,machinery, cows, that made up my family farm, from my dad when he died. He didnt have to work hard for it at all. Yes, he came down to see whatever it was that dad called him down for, but, over the years, he ended up with more cows on dads pasture than dad, and it started out with dad have way more cows on his own pasturre. He did dads haying, but he got the vast majority of they hay at the end, as there was around 45 cows on the place and around 4/5 of them was dads.

I dont think he worked too alful hard for what all he got.

MushCreek · #31 07/28/11, 04:41 PM

We took our 401K money out of the stock market to see what's actually going to happen. We moved it into a safer fund until the morons in DC finish whatever it is they are trying to do. I'm not ready for SHTF yet- I have a house and barn to build, and a garden to start. If things really start going crazy, I'll buy enough materials to get the house dried in, while my money is still worth something.

SquashNut · #32 07/28/11, 04:52 PM

We depend on the people getting their goverment checks to make our living, so I am sure our income would slow down.
But we are ready with enough to last a 5 or 6 monthes if need be.
My garden this year has been a struggle, but I just reseeded any thing that didn't come up, with what I thought would work better.
I am going to be snapping green beans for days on end here pretty soon. And will have to can potatoes to keep them all.

kirkmcquest · #33 07/28/11, 04:59 PM

Quote:

Originally Posted by FarmBoyBill

My brother inherited the farm,machinery, cows, that made up my family farm, from my dad when he died. He didnt have to work hard for it at all. Yes, he came down to see whatever it was that dad called him down for, but, over the years, he ended up with more cows on dads pasture than dad, and it started out with dad have way more cows on his own pasturre. He did dads haying, but he got the vast majority of they hay at the end, as there was around 45 cows on the place and around 4/5 of them was dads.

I dont think he worked too alful hard for what all he got.

Sounds a little bitter.

mightybooboo · #34 07/28/11, 05:11 PM

If its a ture default and ceiling a LOT of hospitals will fold very quickly,gov money is involved in a LOT of them to a very large degree.

No medicare payments most hosps will be toast.Even a reduction would BK most,ask me .Ours did.Slowdown in gov payments and having to take what walks thru ER door and dont pay,thats doubled.BK we went.

Rusty'sDog · #35 07/28/11, 06:28 PM

Most people are speaking of the Federal level cuts, but we must also remember that each State receives fed money for various programs (highways, education, energy, andandand). When those funds cease flowing, local programs will be cut (or tax increases raised to cover the lost fed money). Before you can spend it, it needs to come from somewhere.

It will hurt for awhile, but most states will benefit from being less dependent on the feds.

SageLady · #36 07/28/11, 07:27 PM

Quote:

Originally Posted by Wind in Her Hair

Just curious how someone works hard for inherited money?

Well, I know I worked darned hard for years taking fulltime care of my mentally ill and alcoholic parents. Yep, I definitely earned the money I inherited.

As far as interest rates going up - I would be happy to finally be making money on my money for a change. Don't have that much and what I do have I wouldn't want to risk investing it at this time, but making money on it in a CD would be great.

big rockpile · #37 07/28/11, 10:28 PM

Quote:

Originally Posted by plowjockey

If our Govt. "shuts down" and could not send out good checks, to anyone, it would not matter how "prepared" one thinks they are, unless they live in a fortified cave, with a lifetime supply of food, water and medicine, etc. they will not be prepared enough.

Those who "don't have", will simply start taking, by force, if necessary, from those who "have".

Anyone who thinks a a real, extended, Government shutdown, with millions of hungry, desparate people, will be anything less than armageddon, is only kidding themselves.

The most important thing to stock up on, will be ammunition.

X2

big rockpile

geo in mi · #38 07/28/11, 10:36 PM

It would be interesting to get up a pool of those who think the gov. will default vs. those who think a rabbit will be pulled out of the hat just in the nick of time......

geo

willow_girl · #39 07/28/11, 10:38 PM

My stocks already are taking a beating!!!

salmonslayer · #40 07/28/11, 10:39 PM

We also get a military retirement check but we have other income and enough savings to last 2 or 3 years at current prices but we have a full pantry, no debt and enough physical assets we could get by for quite a while. My biggest worry is our 5 kids, all of them are employed but two are still in college and it pains me that they may not have the same opportunity we had. One of our sons got laid off out in Seattle and was really struggling but he moved to the farm and already has a pretty good job for around here but he has zero saved for retirement and he is almost 30. Thats the impact I see, a few decades from now lots of folks will be a lot farther behind than we were.