Why do people hype up this financial "crisis" to be worse than it really is?
Despite this "horrible economic crisis", for some reason I still have to fight for a parking spot at Wal-mart on a Saturday afternoon, I still have to wait 2 hours to get a table at a restaurant on a Friday night, and I still have to fight my way through an over crowded mall.
For such a huge financial crisis, People sure do seem like they still have a huge amount of money to spend.
- Anonymous1 decade agoFavourite answer
FEAR. From Al Gores warming scare to most of the Democrats agenda. They want control of the American public though FEAR
- 1 decade ago
Thats exactly WHY there is a huge financial crisis. Americans (and yes I am from the US before anyone bashes me) spend too much. We blame the banks for lending out subprime mortgages, yet apparently the guy that took on the loan for $400,000 when he made $60,000 a year was too stupid to realize he couldn't afford it in the first place. We blame the credit card companies when they start cutting credit back to customers because of all of the peole who have run their credit to the limit and not paid just so they can have something better than the guy next door. This country is built on greed and capitalism and when it starts to go away they all freak out. No one wants their taxes raised, but they go insane when states start having to cut education and public safety or if someone even suggests a tax on gasoline. Big screen tv's, high dollars cell phones, luxury automobiles...all of this comes with a price tag and America is now seeing it.
Come to Virginia and I will guarantee you that the mall is empty and you can get a seat at any restaurant but the Walmart is packed because they are cheap and Americans are having to start learning how to live on less.
And even if there was a complete depression (which I'm not sure it isn't alread) there are still people so addicted to spending that they will be out there in the malls shopping even when they go flat broke.
- 1 decade ago
From the perspective of someone who has never made enough money to be considered even lower-middle-class, I can tell you that I am living pretty much as I always have. There's enough money for food, the lights are still on, and I still can't afford or justify $10 movie tickets, $80 jeans or $100 meals in restaurants.
I don't kid myself into thinking things aren't going to get worse, but I really do think the people who are being hardest hit right now are the ones who were either making way too much money for the sort of work they did (ie. autoworkers and computer-types) or those working in fields that are just becoming obsolete (ie. home-building and oil-related businesses), all of whom should have seen this or something like it coming for quite some time now. There are also the folks who were living in $2200/ month houses, driving two brand new cars and spending way more than they were making, and I have not an iota of sympathy for any of them. They are merely getting a taste of how the other half lives, and golly, ain't it bitter?!
By the way, how un-American am I for admitting that I'm looking forward to the day when a U.S. dollar is considered scrap paper and people will have to get by on their wits and their mettle, leaving many of the formerly middle-class folks sitting on their hands and wondering how it all went so terribly wrong? For years I have watched the banking elite, the U.S. government and the Federal Reserve do their level best to turn this country into a giant corporation, and they've nearly succeeded. Won't it be jolly fun to see them fall flat on their collective bums?
- Anonymous1 decade ago
If your avatar is real, I am very surprised by such statement from a service man . Tens of thousands of people are being laid off daily sir , Wal Mart sells cheap food, Food is always the last place where consumers cut ,Even if it means going without other things. If you pay attention like I do, You will see that what I am saying can be confirmed by the fact that Wal Mart and other large food chains like them are some of the very few businesses who are not making cut backs. I'm not a doom and gloom person, But you also need to be in reality as well. Wait till all these tens of thousands of people who have been laid off can no longer pay their bills start having an effect on the industry who they can no longer pay because of being out of work,
Your going see just how bad it is. I will also take into consideration, That as someone who comes from an all military town, The military trains soldiers to think a certain way, Which is to stay positive no matter how bad things look, So that when they are in battle and men are dying all around them, They keep going, I'm not sure if that's the case here or not, But that's all I can possibly think of as to why you would think that things are not tough, Because saying things are not tough is not reality . You can be on a large ship that's sinking, And your still going to enjoy a degree of enjoyment and comfort before it goes down, But that doesn't meant it's not sinking. God bless.
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- MephistoLv 51 decade ago
wal-mart offers everything at a discount, what you failed to mention is that just about everything made is foreign and to top it off their wages are below the standard, ask any employee. Which is why they are constatnly sued and whihc is why wal-mart closed some stores and settled on the suits.
that does not change the fact that wal-mart eventually will drive itself into the ground, like ooh , say circuit city, mervyns and some other stores... theres one coming to your town to, eventually. I am sure there are several forclosures as well in the works...
as for food, I made a food test just for kicks and guess what, between groceries and eating out, I spent about 25 dollars more over groceries and for all that cooking oil (fat), I think I'll stay with groceries..Source(s): on another note, when single and no payments, indulge, afterwards comes reality..... enjoy..
- 1 decade ago
I don't think you have a very good understanding of the situation. You should visit Florida some time and see what's going on. This state is a belwether for the overall economy.There is a credit freeze currently going on. A severe credit freeze. People can't get loans for anything. Small businesses are going out of business left and right here in Florida. You should see the vacancies for commercial real estate here. The percentage of vacancies is high right now. And as I know from experience, there are absolutely no jobs out there right now- especially here in Florida. Employers simply are not hiring because they can't afford to. Actually, they are going in the opposite direction as they are laying off workers by the thousands. Foreclosed homes are lined up down the block here in Florida. The days of building new homes are gone- people can't even sell the homes they have even as they have slashed the price by 50%. Bad bad things are brewing right now. And it'll get worse before it gets better. A lot of folks might be living out of their cars (if they have one) real soon.Source(s): me- a political science and economics graduate
- Anonymous1 decade ago
Ever watch Looney Toons? Remember when Wile E. Coyote would run straight off a cliff, but then he'd just hang there in mid-air for a little while... until he looked down?
The people you describe are like Wile E. Coyote, in that moment.
The "crisis" has hardly even begun. Most people have no concept of how bad it could potentially be. No one really knows where the bottom is, or how far the bankers intend to take this thing.
- Chris KLv 41 decade ago
I agree. The economy is bad and we are in a recession but worst financial situation since the great depression? Hardly. This is barely reaching the low of the late 70's where unemployment was just into the double digits and the dow was under 1000.
Its always the same thing with the media. Make bad situations worse and good news does not exist unless you were just elected president.
- kerfitzLv 61 decade ago
For some this really is a financial disaster, and for many corporations it is too. The hype probably made it worse since the market reacts strongly to negative news and with the ability to affect a trade in mere minutes makes the market even more volotile than it should be... Companies that closed or are going bankrupt probably had poor business practices to begin with and this is just the market culling the wheat from the chaff.
- iraqisaxLv 61 decade ago
What almost nobody seems to realize is that our continued financial crises are all the results of the abandoning of sound financial principles such as the gold standard, and establishing a private central bank (the Federal Reserve System), and listening to "economic experts". How can it be that our economy is going down the tubes? After all, our economy has been controlled by "experts".
Well, I'll tell you the truth: we have all been swindled for almost a hundred years. The experts are nothing by mouthpieces for criminal bankers who have stolen our wealth. They have done this by creating a private central bank, which created currency out of nothing, and earned interest for doing this from the treasury bonds they purchased with their FRNs.
It was our politicians who did this to us in 1913, in complete disregard for the Constitution which tasks them with coining money out of gold and silver. These same politicians then passed the legal tender laws, forcing us to use FRNs for all debts public and private, rather than gold and silver coin which the Constitution required.
Then in 1933, these same criminals stole our gold. And in 1965, they stopped using silver in our minor coins. Then in 1971, the connection between gold and the "dollar" (actually the paper FRN which represents the dollar) was severed. Now, there was no restriction on how many FRNs could be printed, and inflation really took off.
Today, not content with how much they steal from us with inflation, our criminal politicians are now making massive gifts to their friends of billions of "dollars", supposedly to forestall an economic meltdown which they have caused.
Yes, people have a huge amount of currency to spend, but what is it worth? Look what it costs to buy a cup of coffee. Where has the purchasing power of the "dollar" gone? It has been stolen from us by our criminal politicians and their banker friends. And this theft is not going to end soon. The American people are too stupid to understand what has been, and is being done to them. They continue to elect the same criminals who are beholden to the same interests.
- Killer QueenLv 71 decade ago
I said the same thing a few weeks ago and got so many thumbs down. Only a small percentage of the population has been affected. There are still plenty of people with jobs and money to spend.
Some of the "tragedy" can be attributed to lack of personal responsibility. Houses that people couldn't afford in the first place, buying luxuries instead of saving, etc. Financial experts say everyone should have at least 6 months' income saved away for emergencies but how many have actually done that? Some say they can't and I imagine there are those who truly can't. But I read about that family of 7 who has never made more than $33,000 a year. They paid their house off in 9 years. Two of their children have now graduated college. It's about priorities.
Plus, what we claim as poverty would be rich in other countries. People who are on assistance have cell phones, cars, computers, etc. I'm not saying they don't need a hand up. Maybe they do. For me, I would sell anything I didn't need to look for a job before I would accept assistance.