Questions of Economy
We here at Exit133 don’t like to pull our heads up out of the sand that is local news very often, but lately there’s one elephant that has been hard to miss. The national economy. Everyone is talking about it. It went from national to local so fast we hardly knew what hit us. Most emit a nervous laughter when asked what they think. “Oh we just have to ride it out. (ha. ha.)” Eeek.
So I got to thinking. (Dangerous, I know.) How has the economic downturn, wobbly banking situation, and constant drop of the Dow affected you – our friends and neighbors? Is it at all? Did the extra cable channels get dropped? Have you shifted eating out from Pacific Grill to the Hub? Are you waiting for … something? Are you worried?
Are you worried for Tacoma?
24 comments
S Squid October 21, 2008
Though it is expensive relative to other Tacoma eateries, Pacific Grill is still the best bargain in town considering what you get for what you pay. Today I paid $12.95 at lunch for the best damn BLT I have ever had, in a very comfortable, even chic space.
But the question is am I worried? Short term, I’ll pull back on a few things, but not so much things that are really important to me. If this recession lasts 24 months it will surprise me and not have much effect on my day-to-day living.
Recessions aren’t all bad. People talk as though this is the “worst recession since the 1990’s.” Ha! Poor us.
M mclovin1955 October 21, 2008
How has the economic downturn, wobbly banking situation, and constant drop of the Dow effected you
Isn’t it “affected” not “effected”?
R RR Anderson October 21, 2008
the economy is hell. I am forced to draw my underground cartoons with “hanford” discount superfund graphite instead of the luxury Ticonderoga NO.2 I have become so accustomed to.
I have become the man of constant sorrow. I blame it all on the america hating parts of the country.
N notagain October 22, 2008
I’m more concerned about the housing crash. We’ve already seen Gig Harbor cut staff, which means no govts will be hiring when I’m ready to change jobs.
I’ve also been waiting for re-analysis of the financial center downtown in light of the problems with the industry as a whole.
M Mofo from the Hood October 22, 2008
Well, I’m a little concerned about the local situation and especially when I hear that newspaper production is declining. I mean if the Tribune stops printing newspapers then what will I wear on my feet?
A altered chords October 22, 2008
I just jumped in and bought a house. We’ve just been through 2.5 years of decline in housing prices but they remain higher than they were 5.5 yrs ago so there is probably still a large potential for furthere downturn. But I need a place to live and can’t stomach throwing money away every month on rent.
My concern for Tacoma is that investment in Tacoma will dry up and the development That I’ve witnessed over the past 5 years will dissapear. Further, I’m concerned about all the vacant houses that make this area look blighted.
Jazz was invented during the great depression so perhaps it will find a resurgence and I’ll rake in the coin playing jazz piano.
I will probably only lose my real job if I spend my time writing comments on a Tacoma blog instead of working.
J Jesse October 22, 2008
My concerns are that I can’t buy a house. Prices are falling faster than I can save money and having to have 20% down is a bitch – I don’t want to spend tens-of-thousands on that! I would like to get out of this apartment – I make the income, have the down payment, but I just can’t pay $2000-$2500 for a payment on a depreciating asset.
Also, I was so encouraged and excited about all the plans for downtown Tacoma – I think her day in the sun is overdue. Those items are being dragged out or not tackled right now. It was fun to think of the condos, density, business, etc. that was slated for downtown but may or may not ever be now.
A altered chords October 22, 2008
Jesse – Please consider south Tacoma. It is an area that I didn’t even drive through until I gave up on north Tacoma, Highlands etc.
I paid $170k for a 1500 sf 3 br that won’t need any work. (hopefully)
The neighborhood looks decent. (occasional bad looking place/rental) but by and large it’s good. That whole stretch of land east of the tacoma mall and west of pacific bordered by I5 at the north (where it runs east and west for a stretch before resuming its logical north south direction) all the way down to 72nd or 74th.
I can walk to the best sushi in Tacoma (Gari of Sushi) and to safeway (big deal) and to any number of vietnamese, korean, independent burger places, a philly sandwich place and Uncle Thurms southern.
The biggest risk I have is putting on 40 pounds before thanksgiving.
D dni October 22, 2008
My personal take on this, was for once I didn’t feel bad about having money socked away for retirement.
My house is still valued at more than I paid for it, thank God, so no huge loss, and my job is still intact and I don’t see myself getting fired. However, if people quit eating I may go hungry myself.
I don’t believe we’ve seen the big picture yet. Perhaps in January more things will start coming to light.
Another good thing…I’ve noticed a dramatic decline in credit card applications in my mail box. Less recycling for me.
E Erik S October 22, 2008
I think that it the long run this recession is necessary in the same way that burning your finger on a hot stove when you’re a kid is necessary. We would do well to stop living a credit-based lifestyle in which we live far above our needs, owing lots but owning little. Or at least I hope that we’ll learn a lesson, because we’re sure going to be paying the tuition.
Consumers are in debt, governments are in debt, and companies are in debt. Most assets (stocks, houses, collectible guitars…) are far overpriced or at least were until quite recently. It’s going to take a while for the debts to be paid off and for asset prices to fall back in line with incomes. And the process won’t be fun. But if we can somehow learn to curb at least the worst of our excesses in the realms of credit use and displays of “irrational exuberance” (over stocks, houses, or anything else) then we’ll be much better for it come 2011, 2012, or whenever.
Perhaps thrift and prudence will actually become fashionable one day. Boring, yet sexy!
S Sassy McButterpants October 22, 2008
@altered chords
I can walk to vietnamese restaurants and I live NEXT DOOR to a burger restaurant… are we neighbors by chance? :)
A altered chords October 22, 2008
Not yet…Still needs to pass appraisal. But looks promising. Major intersecion is 38th and M. Your ‘hood?
O offbroadway October 22, 2008
Close to my hood. Sort of.
Still busy as heck, but obviously many major construction projects are on hold and generally, bidding might be a little tougher. But there’s still a lot out there. Might not be able to be as choosy, though.
D drizell October 23, 2008
I think Tacoma will hurt for awhile just like everyone else, but a rebound is imminent. Personally, I’ll be optimistic about my own situation until the day the big drought comes and my crops start dying or my mud hut starts to fall down.
I am concerned about the large number of people that will be left homeless and the millions of people that will starve in Africa because people stop making charitable donations, instead deciding to stuff their face at the Hub as opposed to Pacific Grill.
G GL October 23, 2008
Never thought of myself as part of the “ownership society” but my broker actually called and told me to liquidate half my portfolio. And my portfolio ain’t big. We’ve set aside any notion of selling our house, and are looking at saving more by going out less.
Yes, I’m concerned. Yes, I think there will be a little bump in confidence with the election of a new president. But long-term things are not going to get better quickly. And in Tacoma, with an already struggling downtown and less money to spend, we now have to hope that Russell Financial doesn’t jump ship.
Y Your Embellish Daymakers October 23, 2008
At Embellish we offered our clients our version of a “2008 Stimulus Package”, free hair cuts with color services of $60 or more. Clients have really appreciated this gesture as they do not have to push out their appointments as for or choose one or the other. Therefor, everyone’s day is made!! ;)
N Nick October 23, 2008
Well our favorite local employer is certainly not happy right now. The Russell 2000 index dropped over 2% today while the Dow actually went up (and the RUT is currently down 40% from its high, more than the Dow, S&P 500, AND the Nasdaq Composite). I think the universe is turning inside out as we speak…
T Thorax O'Tool October 25, 2008
I’m hopeful for 2 reasons.
Reason #1: folks (like myself) that balk at paying $250,000 for a 3 bed house in a decent neighborhood will have a chance to buy a home for a reasonable price.
My tip: if you can wait, hold off ‘till house prices are about 3x the median income in your neighborhood of choice. 3x to 4x is the average historical median price to median income ratio… since about the Civil War. It’s hard to argue with 15 decades of trend.
Reason #2: Tacoma is not nearly built-up nor did experience as big of a boom as Seattle and Bellevue… as a result, it’s still cheaper here with relatively affordable land and utilities, etc. Less of a jungle of empty condo towers and less empty malls to fill (like many of the new plazas around Southcenter or like Totem Lake Mall).
My tip: as soon as you feel comfortable, buy yourself a home or start a business. Remember, all financial panics, recessions and depressions are merely the transfer of wealth to fewer and fewer hands (like WaMu… a $300 billion company sold for like $4 billion! WTF?). You too can join in on the $$$ to be had!
N NSHDscott October 26, 2008
The economy will recover. It isn’t the end of life as we know it. You’re only really screwed if you were about to retire on savings invested in the stock market, or had a nutty mortgage that you now can’t afford. Also wouldn’t be fun to lose your job.
If you aren’t one of these people, use this opportunity (bargains and low interest rates) to get into the housing market, or upgrade (because more expensive houses lost more value than cheaper houses). Or improve the house you’ve got (my current strategy). Buy stocks, because they are a bargain right now. Live smart, but keep living. Hey, at least we live in a great place!
K Kaleenka October 28, 2008
Living smart is great if you have the income to live smart with. I lost a large part of my retirement savings so I will not be retiring in 2 years. And since the crash, both my business and my husband’s business have stalled. I’m considering changing careers. Meanwhile, my 70-year-old mom who works as a sub at her local library was replaced by a full time hire. My sister-in-law earned a nursing degree in June and has not yet found a job. My brother was out of work for a year. Got a job clear cutting trees. Three weeks into it, his boss shows no sign of paying him. My sister’s business is too slow to make her mortgage payment. Every one in my family is afraid they will lose their homes if they can’t find better employment. None of us can bail out the others. I’m too stunned to be sad. Thank goodness for Ambien or I wouldn’t be sleeping.
R rick October 28, 2008
@ Kaleenka,
Sorry to hear of your family’s collective tough situation. Best wishes for some better news in the very near future.
R rick October 28, 2008
My perspective on “questions of the economy” is that it’s clearly going to be a bumpy ride into the foreseeable future. And some of us are going to experience far more than our fair share of bad news/luck… Not unlike disaster preparedness (do you have your five gallons of water and canned foods stashed away?) I think it’s important that individuals and families pencil out a sequential action plan given worst case scenarios in terms of job loss, looming foreclosure, etc. It’s not a lot of fun to think about – kind of like preparing a will. But it’s far better to consider various plausible options objectively and with time to find out additional information, rather than waiting until the difficult crossroads are met without a plan. For example, it’s better to have a discussion with one’s family about how households might be able to consolidate, and what the timing might be to try to PREVENT a foreclosure… and before emotions are running high [Note to my brother: there’s no way in hell you’re going to live with me]. If losing health insurance is a risk, it may be a good idea to schedule some near-term wellness appointments and such. If dipping into a 401K is a looming necessity, there may be a tax advantage if you can defer until the new year. Maybe renting a spare room in your home is possible? Judging from the rooms/shared section of Craigslist, it seems this is not a unique idea—though I have no idea if this list is larger than “normal”. My daily perusal of Craigslist is typically limited to looking for a posting by Sassy in the casual encounters section. A boy can dream… Sigh… Anyway, that’s how I approach the possibility of tough times ahead.
R RegularMom October 28, 2008
How has this affected me? Well I thought being a government employee I was safe (my job anyway). Not so. I have been laid-off. So come Turkey Day I will not have an income. Yes, I am worried. I think we can make it for a while on unemployment as long as we tighten our belt, but there are only so many things a family can cut back on. We don’t have cable to cancel. The job market looks grim, so while I am searching I am not very hopeful. I am considering a change in career, but that poses other problems. My biggest concern is how this will impact my child. With no income, we cannot afford pre-school. I know there is financial aid, but my husband makes too much for us to qualify. The kicker is that with a house payment, utilities, student loans we have no extra money (pre-school, sports, new clothes, shoes, coffee, eating out etc.). So in essence we are now part of the population just getting by, one bit of bad luck and that is it.
On the bright side this gives us a chance to see how we can live a more sustainable lifestyle. I plan to bike and take the bus as much as possible. I will have more time to cook, tend our garden and make things we might otherwise purchase. I plan to savor the extra time with my family. This may turn out to be a good thing.
Thanks for the bit of free therapy.
J J. Cote October 29, 2008
Regular Mom @24:
Chin up, gal. I was in Nursing school when my 1st was born. My wife quit working to stay home and be a “regular mom”. It was hard. Damn hard. School took longer than we thought and I got my LPN first so I could work. Then went after my RN while working 36 hour weekends.I don’t recommend it for the faint of heart.
I had to retire after about 10 years as an RN because of disability. My wife raised 3 great kids. Oldest two in college now and youngest is at TSOTA. If she had worked we would have the house, the mortgage, two cars, toys, etc. It’s all just STUFF. Stuff can not replace happy, healthy, bright kids raised by a loving Mom and Dad instead of daycare. Being a stay-at-home Mom was a great thing for my wife and for our sons. Sure we don’t have a lot of STUFF. But who needs STUFF anyway?
Keep on Truckin, RegularMom.