Is it a Recession or a Depression?
March 12, 2009 by Kristin LaVanway · Leave a Comment
Have you heard the old saying: “A recession is when your neighbor loses his job…a depression is when you lose your job.” Yeah, that used to be kind of funny until we all found ourselves in a position where we had to decide between the two. Face it, we are all in one category or the other these days.
This saying comes to mind as I read different blog posts and comments about the recent announcements of the Obama Stimulus Package and the Homeowner’s Assistance Plan dubbed Making Home Affordable (for information on this program, check out the official site at www.financialstability.gov). Clearly, our nation is facing some unprecedented financial challenges right now, and everybody “in charge” agrees that we cannot just sit around and watch things to from bad to worse to even worse than we imagined. “Someone” has to do to “something”, right?
But as soon as “someone” does “something”, it seems that all the pundits come out of the wood work, with their gloomy predictions of why this won’t work. Why should we “bailout” those who dug themselves into a hole? Why should we spend money on “that” when we should be spending money on “this”. Opinion after opinion, debate after debate, blog after blog…it goes on and on.
As I have been reading these “expert opinions”, one thing is clear. The folks who complain the loudest are definitely living in a recession, not a depression. Let’s face it…if they were about to lose their home, don’t you think they would be lining up pretty quick for some of that “bailout money”? I have yet to hear anyone confess that they screwed up and deserve to lose their home for being greedy and materialistic. I haven’t heard that from anyone. And there are those out there who will receive assistance because they were greedy and materialistic, but more often than not, those who will (hopefully) be helped out are people who did all the right things and still ended up in the wrong situation.
Like the firefighter who’s pay is now half what it was last year because the city cut all overtime (yeah, that’s right…so if there is a fire, there are half as many firefighters showing up to put it out)
Like the nice couple who have been homeowners for 35 years but lost their home when the husband got very sick and could not work any more.
Like the couple who are struggling to get by on one income after the husband lost his job months ago, and are living with relatives so their special needs son can attend a school that can accomadate his disability.
Like the amazing woman who ran the local water and ice store, and helped everyone out with their problems, but lost her business when the economy tightened up.
And so on, and so on…
A friend of mine really summed it up recently. She and her husband are living in an apartment here in the Valley while they try to sell their house in Atlanta – he worked in the building industry, she works education. They moved back and forth between Arizona and Georgia for as the building industry struggled and now find that their savings is wiped out, their income roughly half of what it was, with a home that they cannot live in and they cannot sell. They are definitely living in a “depression”. We were chatting about all of this and she admitted that she never, ever thought she would find herself in this position. They worked hard and saved – they had it made. They were planning to retire in a few years. But a little bit of bad luck and they are wiped out. She said, you know, I am completely humbled by this experience. I will never judge anyone again…if this could happen to us, it could happen to anybody.
And that is the truth of the matter. Hopefully those “somebodies” don’t have to be living in a depression themselves before they stop pontificating and work together to do “something”.
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I am a Realtor in Gilbert, AZ, working with clients throughout the Phoenix Metro area. I am lucky to love what I do and appreciate the difference I can make in people's lives.
In a previous life, I was a rocket scientist - really! - but decided to step away from corporate America to be a Mom to my four boys. Found it hard to do bake sales, so I ran a small independent programming business instead.
Flash forward...I am now a single mom and I face many, many challenges everyday. I am living through the hardships that many are facing in this economy. These experiences have motivated me to help other people in my shoes.
I have teamed up with Dean Ouellette to form the East Valley Team - the best darn team in the Valley. Check out our site at http://www.EastValleyTeam.com. I spend way too much time on YouTube - check ou tmy channel at http://www.youtube.com/klavanway
