I'm feeling abit anxious

[QuakerBear]

Hello everyone,

Let me start by saying sorry for bringing the glum news here but here goes.

I work in a medium sized company in Surrey and it seems like businesses round us are having an awfully bad time. Every week we're getting letters notifying us of companies going into receivership (to the point where one of our suppliers who budgets for two bankrupcies a year has had seventeen in seven months), prices are going up faster then companies can produce price lists, our customers are all tightening their belts and we're barely keeping our heads above water.

I know things could be a lot worse, I have a lovely familiy, food, shelter, medical care etc. but I'm starting to feel abit anxious about how sustainable the local business comunity is. Part of me knows that a simple, frugal life is a good, healthy one and that I'd be able to survive just fine. I'm not frightened of hard work or being abit hard up. I also know that because of the growing scarcity of resources a downsizing is inevitable and will do the enviroment good Then the other part of me is worried about what may happen, I'm young enough to have never seen a recession before so feel abit afeared of the unkown and don't feel so secure anymore.

So, am I worrying over nothing? What do you think's going to happen and when?

Thanks chaps, I do look in on you all but it's so busy here trying to keep afloat that I rarely have time to post now.

Over and out

[The Riff-Raff Element]

Well, I can't exactly make any guarantees but personally I think that the worst might have been averted. An awful lot of bad debt has either been nationalised (mostly by the Americans who had the most to lose, after all, but to a lesser extent in the UK) or absorbed into more solvent institutions (Lloyds / HBOS), and a huge amount of money has been pushed into the credit markets by the central banks.

We'll pay for all this later on - I doubt we'll see much in the way of growth for quite a few years, and I think some other businesses will go West (some people seem very concerned about Goldman Sachs for example) - but the effects should be attenuated.

And there will have to be some changes - regulation is going to have to be tightened because there is insufficient transparency.

Mind you, I've been wrong before

[Annpan]

I think that things are going to change, I don't think we are going to be in a long term recession but I think growth will stagnate for a while.

This happens every now and then, and often wonderful things come out of the other side - when the economy begins to grow again there is more space in the market and new business can get off the ground.

I think that the main change is going to be that people will be more interested in time than in money (I believe that we have been going this way since the turn of the century) I think that we will all settle into a more modest existence, more like how most people lived before the eighties brought this money grabbing society about.


But this is all just wishful thinking, who knows what tomorrow will bring.

[mrsflibble]

I'm worried too because I have no idea how this will pan out. I'm most worried about our home. with 2 months notice we could be kicked out. we pay a very cheap rent at the moment and renals round here are goign up as nobody can get a mortgage. the thing I'm most worried about is the worst cae scenario; going back to live with jim's dad *shudders*, but if it was a choice of moving back there, being crippled by rent or becomming homeless I know he'd welcome us with open arms. or at least I hope he would.

[Thomzo]

Hi
We are going through a period of change and change is always unsettling. I won't tell you not to worry as it is natural to be concerned. Perhaps, though, you can turn your anxious feelings into some practical planning? Think through what you could do if you were made redundant. Find ways to cut back on spending now so that you can save some money just in case. Mrs F - perhaps you could have that conversation with DIL? If you know that you can stay with him then you will know, at least, that you won't be homeless. Hopefully it'll never come to it but I firmly believe that you can't be too prepared.

I started work and bought my first property just at the start of the last big recession in the 80's. It was tough and we knew a lot of people that got caught in the negative equity trap. Most people did survive (financially) and within a few short years the houses were worth a lot more than they had paid and interest rates had come right down.

Interest rates are a lot lower than they were in those days. We were paying 15% on our mortgage at one stage.

I think we will find ourselves in a recession but hopefully, the "worst" effects of this one will be to make people stop and think about how much stuff they need to buy and spend more time doing instead of buying.

Zoe

[Graye]

I do remember the last recession and the problems it caused. However, dire as they were at the time, people are very resilient and soon adapt and come up with bright ideas to help themselves out. Don't be too pessimistic. Change is a scary thing but very often in brings out the best in people and makes them do something completely different which may work out just as enjoyable as their "old" life.

And Mrs F, you may need to double check this but I understood the two month's notice thing only comes into play at the end of the agreed tenancy period. So if you have recently agreed a year or a two year tenancy you won't be asked to move until two months after that period expires, even given a worst case scenario. You may have something called a "break clause" in your agreement which might alter things but it's well worth having a look at your paperwork before you get too worried.

[Flo]

Have been there, done that and been out of anywhere to live in the last recession and out of a job too. It can be pretty "interesting" or downright fearsome depending on your character. Let's just say that it takes a few years to get yourself back on your feet. I was lucky and found work whilst other half managed to find housing that my wage would cover even though it was not the best. It got us back into the rental market and when the job fell through, well the dole covered food and heating whilst housing benefit paid the rent as it was cheaper than the rent for equivalent social housing (that says how bad the house was doesn't it?). At least we were back in the system but there was a six month period before that where we were very lucky to have a roof over our heads. Perhaps we were just very lucky indeedy to pull through.

You have to be willing to fight your corner is all I can say.

[red]

I think the current financial situation around the world will effect us all - it has a knock on effect.

I agree with Thomzoes advice. start preparing now, save where you can etc

[mrsflibble]

we have a 3 month break clause and our first year is nearly over. and after october our tenancy I think reverts to a rolling tenancy so 2 months notice and it's byebye. after having had some really bad experiences I kake a point of reading paperwork before I sign ANYTHING and I've also got some really good knowledge of the landlords and tenants act. I'm actually more scared of our letting agent going bust than anything else lol! they're on the downward chute now hahaha!

[Millymollymandy]

Been there, done that, in a few years property prices will be sky high again and everyone will still be moaning......

We have had our own personal recession - hubbie lost his job just after 9/11 and couldn't find another one anywhere (looking in several countries!) for love nor money. Finally he's having his first good year as a consultant in his own business so we can afford a few little luxuries but we never know how it is going to go in the future, so we are always frugal/tight/whatever you want to call it so we don't suffer like a lot of people who throw their money around and don't think about the future! (Plus we don't have a mortgage but when we did we had a fixed rate one so we didn't have to worry about the amount going up or down).