$1 USD, that's like $1 CAD?

[Khan]

I saw that it was 1.07 in my local M&S so isn't that up slightly, I saw 1.01 over the weekend.

[Dunenewt]

Yes, but only a couple of months ago it was 1.25

[Andrew]

US Feds cut interest rates.

So they are now between 0% and 0.25%.

Crazy.

And now more signs of deflation, with prices decreasing for everything.

I hope the Fed reserve and governments do something so that we go back to unsustainable growth and repeat this process in 15 years. ;)

EDIT:

http://research.stlouisfed.org/fred2/categories/122

Graphs now reflect the official recession.

[Andrew]

Crude Oil Tumbles Below $36 as Demand Drop Swells Inventories

$36?

Woohoo! Time to buy a bunch of SUVs! Better scrap all the renewable energy projects. It's not like the price of energy will increase again.

*1970s knocking on door*

So if this recession is bad, how is anyone at this forum going to deal with it? Spend less? Create a larger buffer of savings? Education to get another job?

I'm saving, saving, saving. Not much spending even though I have money to spend. I have a budget to follow and my budget is not looking good, but I'm being cautious(pessimistic) about it, so hopefully it turns out good.

[Dante]

Sit back, spend less, observe the ruin. The only thing that bothers me really is the likelihood of making the same mistakes again, and that less because it would be harmful rather than it just smacks of idiocy.

I suppose I find it difficult to care about economics. My bank went under a while back, but it was bought out and I lost nothing. The food I buy is the same price, the internet bill hasn't gone up. Nothing really changes. Until it does, I'm content to watch and smirk.

[Tatar Khan]

Most people do not react to recession news unless they sit down and think about it because they are not feeling it. So there is less people investing, less people going to financial advisors overall. People are spending less on larger items but they still go and buy expensive lattes and go to the restaurants. I checked with different business owners and their revenue has suffered in the larger items, the items about which people sit down and think before buying, other things are still selling.

[Andrew]

I checked with different business owners and their revenue has suffered in the larger items, the items about which people sit down and think before buying, other things are still selling.

I agree. I doubt Tim Horton (coffee) sales have been affected much. But car sales have declined. People cut out the big items first but keep consuming the small items. Small items do add up though.

[chatfsh]

These are tumultuous and, dare I say, fascinating times that we are living in.  I

[Egeides]

I remain employed at my bank (one of the very few banks that managed to avoid making stupid decisions fueled greed and shortsightedness)

In your view, what's different with that bank to have acted different?

There's lots of anti-bank movements and they have their reasons with what's happening. I'm guessing that banks might have to draw lines if they want a mutual trust environment instead of anti-bank measures (maybe there're reasons to be pessimist there :-X).

[chatfsh]

Basically, Wells Fargo avoided the lure and the pitfalls of the subprime real estate market.  As you probably know, most of these subprime mortgages were bundled into securities along with prime mortgages and sold as securities to investors all around the world.  Investors were promised the customers mortgage payments as their return.  Well when the customers began defaulting on their mortgages, the banks were no longer able to pass the payments onto the investor.  This started happening at an alarming rate where this debt was defaulting like mad.  Banks were forced to write-down all of the bad loans, which basically meant that their assets were significantly over valued.  These write-downs manifested themselves on the Income Statement as the Provision for Bad Debt expense which was in the billions off-setting any profit earned in that quarter.

Each quarter, the provisions kept getting bigger and bigger as the subprime mortgages continued to default.  But it didn

[Andrew]

Bailout approved: Automakers to get $17.4B

Gotta love western economies. If your business fails and you are big enough, don't worry the government will rescue you. When you see mergers, think "If that new business fails the gov will bail them out"

[SandChigger]

;D

Excellent!

[chatfsh]

A little more bailout commentary

Sad, but true...

[img width=462 height=350]http://api.photoshop.com/home_abe914e0723545049a58db23b60a25a7/adobe-px-assets/37c09751c8724763b70b23f7e0a81b4a

And why not when you have government bailouts to cushion the fall?

[img width=462 height=350]http://api.photoshop.com/home_abe914e0723545049a58db23b60a25a7/adobe-px-assets/21963a043bf84044933516ea49f4216c

Can you say "socialism"?

[img width=462 height=350]http://api.photoshop.com/home_abe914e0723545049a58db23b60a25a7/adobe-px-assets/ee164ec786e54c20a375db94f01a8c16

I thought that you guys might appreciate (cringe at) this one.

Last but not least...

[img width=462 height=350]http://api.photoshop.com/home_abe914e0723545049a58db23b60a25a7/adobe-px-assets/c6143331d3cf4821a8bc5b40075969ce

My sentiments exactly!

[Tatar Khan]

My idea would be is to cushion them for a bit and offer the big 3 for sale not as a company but as parts so that way other automakers can buy them out. The American automakers are just unable to compete they can't make quality or low price cars. So let the Korean, Germans and Japanese take over. Maybe we can also let in the French and the Czech in to the market.

[Dante]

The British car industry is whining about not getting a bailout. Apparantly the big payouts in America and continental Europe are a good idea, and if the British industry doesn't get a similar injection of cash soon it will collapse completely.

Good! Let it collapse. It's been choking on its death rattle for far too bloody long now.

[chatfsh]

In the U.S. the auto industry and the government can

[Andrew]

Big is back: As pump prices plunge, SUV sales surge

Woohoo!

USA!USA!USA!

This comic prefectly describes the mentality of North Americans when it comes to gas prices.

Former Merrill Lynch executive pays 37 million for NYC apartment (with taxpayer money)

Chrysler Faces Criticism for Full-Page 'Thank You' Ads

A full-page ad in The Wall Street Journal runs between $206,000 and $264,000, and a full-page ad in USA Today runs between $112,000 and $217,000.

You get a bailout from gov. How do you spend the money? On marketing of course!

I thought they were on the brink of collapse? Good old socialism. USA is afraid of it (oh noes tax funded education and healthcare!), yet when it comes to failing businesses the government is always there with the "invisible hand" to protect them.

EDIT:

Fed aims to buy $500 bln in MBS by mid-year

The U.S. Federal Reserve on Tuesday moved forward aggressively with an effort to drive down mortgage costs, setting a goal of buying $500 billion (346.4 billion pounds) in mortgage-backed securities by mid-2009.

Hurray the gov is going to buy a bunch of worthless mortgages.

During the last depression the government took gold away from everyone. Now the banks want to own all the real estate. A good way to consolidate power and wealth. Inflate everything really high, make money, then collapse it and buy it all again at low prices.

[chatfsh]

A little good news -  despite the recession, according to FORTUNE, there are still a precious few industries that are thriving.  Is anyone surprised to discover that the video game industry is doing exceedingly well?  Apparently, it

[Egeides]

Joke:  What is the difference between an economic recession and depression?  Recession is when you lose your job; a depression is when I lose my job.

It’s just a foible of human nature.  I don’t mean to be crass toward the plight of others, but as long as I have my job, my home and money in the bank (stuffed in the mattress ;)), I fail to see  what all the fuss is about.  Of course my personal circumstances could change in a flash, but until then, life goes on much as usual.

I think it's quite true. Things are real when they become real in people's lives. With this, I would not expect an economy to tank just because people "know" that it isn't straight.

[Andrew]

The joke I learned is:

It's a recession when your neighbour (or co-worker) loses their job. It is a depression when you lose yours.

[chatfsh]

Yeah, same thought. ;)

Fed aims to buy $500 bln in MBS by mid-yearHurray the gov is going to buy a bunch of worthless mortgages.

During the last depression the government took gold away from everyone. Now the banks want to own all the real estate. A good way to consolidate power and wealth. Inflate everything really high, make money, then collapse it and buy it all again at low prices.

So let

[Dante]

Would that be so terrible?

[chatfsh]

Intent of question:

a. Vintage sarcasm

b. He

[Dante]

Oh! So close. But I'm afraid the MILLION DOLLAR ANSWER was in fact option B.

Better luck next time. By which point inflation will probably necessitate a $45bn dollar question.

[chatfsh]

Funny.

For the short and personal answer:  As I