Real-Life Signs
We're in a Recession
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AOL
What a Recession Looks Like
Are we in a recession? Officially, that's up to a nonprofit group of economists at the National Bureau of Economic Research to decide. While their declaration is based on facts and figures, we took a more "average joe" approach to determine whether we are already in the midst of the big "R."
Our bloggers spied more than 20 new trends in everyday life that seem to say we are. Click through our gallery to see what they're seeing.
· Recession Signs Overview
First Up: Recession Sign No. 1 -
Robert F. Bukaty, AP
No. 1: They Stole What?
Thieves have taken to removing catalytic converters, which help control emissions, from the underside of parked vehicles. The converters contain trace amounts of platinum and rhodium --which go for about $2,054 and $9,278 per ounce, respectively -- and can be sold on the black market for a couple hundred dollars each. Victims, however, pay much more than that for replacement parts.
· Which Vehicles Are Hardest Hit
Next: Recession Sign No. 2 -
Getty Images
No. 2: A Little Off' 'Target?'
Who better to weigh in on consumer behavior, than the people who work in retail stores. For example, a merchandiser who works in a Maryland Target has noticed she is getting fewer items for the displays that she manages and that the store traffic has been considerably less since the holidays. She says there don't seem to be as many people shopping and they are moving less merchandise.
Next: Recession Sign No. 3 -
Tim Boyle, Getty Images
No. 3: Joining the Club
Costco is one of the few retailers doing pretty well these days. Why? As Americans increasingly worry about the rising price of food, more are finally biting the bullet and joining wholesale clubs, like Costco. Case in point: WalletPop.com blogger Amey Stone recently jumped on the wholesale bandwagon. She says, "No matter how secure my husband and I feel in our own jobs, we see rising job insecurity all around us. Given that backdrop, I decided it really is worth it to pay $50 to join the Costco club."
· More on the Costco Effect
Next: Recession Sign No. 4 -
No. 4: Wedding Watch
Even with weddings, people are increasingly watching their pennies. They are booking the affairs in off-peak times and reducing the number of guests they invite, according to the National Association of Catering Executives. People also are increasingly bargaining with caterers to keep their costs low without sacrificing the pomp of what should be a once-in-a-lifetime event. For example, don't be surprised if you attend an otherwise lavish wedding this year that does without a Viennese Table, a selection of deserts served at the close of an affair.
Next: Recession Sign No. 5 -
No. 5: Plenty of Tee Time
Planning on hitting the links this summer? You may not have to worry that much about bumping into other golfers because there are fewer of them. According to The New York Times, people are quitting the sport in droves, partly because of economic reasons, such as corporations cutting back on country club memberships. This has occurred despite the popularity of Tiger Woods.
Next: Recession Sign No. 6 -
No. 6: No New Car for Now
The auto industry, which already is hurting mightily, is trying to convince buyers to jump into a new car with lots of incentives. That's because dealers are desperate as thousands of Americans decide to delay their purchase of a new car this year.
· $1K Monthly for Minivan??
Next: Recession Sign No. 7 -
Michael A. Jones, Sacramento Bee / ZUMA Press
No. 7: Wait-Free Cheesecake
Getting a reservation at your favorite restaurant has gotten a lot easier lately -- too easy for the liking of owners of dining establishments. Sales are down at chains ranging from Red Lobster to Ruth's Chris Steakhouse.
Anecdotally, one of AOL Money & Finance's editors was recently able to get immediate seating at the Cheesecake Factory in Sterling, Va. -- during prime-time dinner hours on a Thursday night. Previously, the wait had always been more than an hour.
Next: Recession Sign No. 8 -
No. 8: Unusual Home Parties
Move over Pampered Chef and Mary Kay, "gold party" services are coming to town. Companies like My Gold Party and Gold Party by ADI have sprung up offering to help convert your friends' gold to cash, either by supplying you (for a fee) with the equipment and training for do-it-yourself appraisals or by sending a representative to your home who will set up shop in your kitchen.
· More on This Gold Party Trend
Next: Recession Sign No. 9 -
No. 9: Bye-Bye Businesses
The National Federation of Independent Businesses (NFIB) reports for March that it's Small Business Optimism Index is at its lowest point since the second quarter of 1980. Businesses are complaining that increased selling prices are not keeping up with overhead inflationary pressures. Nearly one-quarter indicated that they raised employee compensation by a margin which is outstripping profitability increases. Headlines abound of popular retailers shutting down some (or all!) of its stores: Home Depot, Sharper Image & many others. Losing Competitors
Next: Recession Sign No. 10 -
No. 10: Repo Men Revival
Repo men have some enviable careers right now. Newspapers around the country have been publishing stories about local repo men raking in the bucks, taking away mostly vehicles, from cars to campers, and motorcycles to motor boats. According to KHOU, a Houston TV news station, 1.5 million vehicles were repossessed last year, a 15-percent increase from 2006. 2008 is expected to jump 10 percent from 2007
· More on Repo Men Rewards
Next: Recession Sign No. 11 -
Susanna Frohman, San Jose Mercury News / MCT
No. 11: Payday Lenders
Nationwide, Americans pay about $5 billion a year to borrow more than $40 billion from payday lenders. Even those who know what a bad deal these types of high-interest loans are, are not immune to them today. WalletPop blogger Geoff Williams, never intended to step foot inside a payday lending establishment ... until this year.
· My First Payday Loan
Next: Recession Sign No. 12 -
No. 12: Empty Mall Events
Walletpop blogger Josh Smith shares this story: One of my friends is in charge of marketing at a nearby mall, and works closely with their kids program. The program provides fun activities for children, during which parents can either put on a tiara or spend time shopping without junior in tow. Even though the event is free, attendance has been drastically down due to a lack of incentive to use the free daycare the events provide. In short, parents don't need their children watched, because they don't have the money to shop. Few Kids Need Care
Next: Recession Sign No. 13 -
No. 13: Concert Cutbacks
According to frequent sporting-event and concert-goer Josh Smith, spending $100 plus dinner on a show or baseball game while food and gas prices are rising seems frivolous. This year he and his wife missed the entire season of their favorite minor league hockey team and passed on seeing one of their favorite comedians.
· What Will He Do Instead?
Next: Recession Sign No. 14 -
No. 14: Odd Biz Combos
There is a growing movement of small businesses to compensate for falling sales by adding new business products. For example, blogger Tobias Bucknell shares that the dojo in his hometown has added a new side business to its martial arts: balloons. In Tom Barlow's neighborhood, the local model train shop is now also making banners.
· Strange Combo Ideas
Next: Recession Sign No. 15 -
No. 15: The Well-Off Hit Thrifts
Picture this, thrift store brethren: A woman in a late model Mercedes parks next to you and wanders into your favorite thrift store. What's going on, you wonder, not a little put out by the sight of an apparently well-off member of society making use of "your" affordable consumer items. What's going on here is an over-all belt-tightening. As the economy loses steam, people fear for the jobs, and the house-ATM machine dries up, people are looking at all the ways they can save. Frugality has suddenly become "in." More on This Thrift Store Trend
Next: Recession Sign No. 16 -
No. 16: Trimming Travel
A lot of people are canceling or dramatically altering discretionary travel these days. With the ever-shrinking dollar, travel for fun and pleasure has dropped far down on the list of splurges for many middle class families. Gasoline prices, groceries, utilities, rents, day-to-day living expenses are taking a larger-than-ever chunk out of our budgets.
· More on Travel Trimming Trends
Next: Recession Sign No. 17 -
No. 17: Summer Camp Cuts
If you have a couple of kids enrolled for four to six weeks, as many are, summer camp can set you back more than $10,000. WalletPop blogger Michelle Turk spent $3,000 last year, but not this year. She plans to either skip camp altogether or find town-run camps that are a few hundred dollars vs. a few thousand.
· Summer Camp Sticker Shock
Next: Recession Sign No. 18 -
No. 18: No Zoo Too
Another place that parents like WalletPop blogger Sarah Gilbert is avoiding in these cash-crunched times is the local zoo. And no, it's not because of the price of admission. It's the treat stands at every turn that have the kids shouting "gimme" and mom shelling out $20 for non-nutritious junk.
· Why The Zoo Is Out
Next: Recession Sign No. 19 -
No. 19: Coffee House Chaos
Blogger Tom Barlow has a favorite coffee shop. However, it's undergone a change in the past few months. More and more frequently, formerly vacant tables are occupied by middle-aged executive types with their brand-new laptops, cell phones and lattes poised for action that never comes. Barlow suspects they are in the same boat as one of the fellows he knows, recently cut free as a part of recession-driven downsizing.
· Give Me Back My Coffee Shop
Next: Recession Sign No. 20 -
AP
No. 20: Sin City Slowdown
In the market for a Vegas vacation? Now might be a great time. The Wall Street Journal recently reported that "Reacting to a national economic slump that has depressed gambling revenues and room rates ... casino and hotel operators are offering up a buffet of spring time deals normally reserved for the hot, slow summer months." Room rates have fallen more than 20%conventioneers aren't staying as long as they used to, gaming revenue is down slightly, and it's easier to get in to A-list clubs than it used to be.
· More on Vegas Slowdown
Next: Trend Sign No. 21 -
No. 21: Living With Gramps
Does the thought of moving to a new city after graduation, as the economy heads towards a recession, frighten you? If so, you may want to do what some whippersnappers are doing; moving in with grandma and grandpa in order to save money on rent. Many families are making it work. Living with your grandparents can also provide benefits to the entire family ,who can rest easy having someone around to help out around the house and be a point of contact in case of emergencies.
· More on Surprising Roomies
More on AOL: Dig Out of Debt -
More on AOL:
How to Pay Down Debt
Sure, we all want to get out of debt. But once you've made that decision, and have unlocked a source of cash (big hurdles, to be sure), there is a question of just what is the best way to pay it off? That, depends on your goals.
Whether you are afraid of losing your home, are closing in on retirement or want to get a big loan in the near future, WalletPop shares 6 common reasons people want to reduce their debt load and the best strategy for each.
Six Smart Ways to Pay Down DebtMore in Money & Finance:
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Recent Comments
ROBDAV265 02:44:23 PM May 13 2008
with the high gas prices its keeping people of the road and driving around has been a pleasure , love it !
Custom prc 06:06:27 AM May 13 2008
Can`t we find another cocaine abusing alcoholic rich kid phony born again moron who couldn`t maintain a C average in college to lead us for four more years of the same republican family values?
The Bush and BinLaden family`s have been in bed together for three generations, it`s all about the OIL, how stupid we have become. The best propaganda machine since Josef Goebels. Too bad ignorance isn`t painful.
Mykittywinks 05:40:46 AM May 13 2008
AOL FALSLY REPORTED THIS THE DEFINITION OF A RESESSION IS TWO QUARTERS OF NO GROWTH IN THE ECONOMY.. THIS IS NOT HAPPENING. WE HAV HAD GROWTH THE PAST TWO QUARTERS AOL AND THE DEMOCRAT MEDIA LIE FOR POLITICAL REASONS
SIXKNIGHTS 04:31:27 AM May 13 2008
THE GOVERNMENT IS FULFILLING ITS OWN PROPHECY ----- RECESSION ?? THE GOVERNMENT IS CAUSING THIS TO HAPPEN BY THE LACK OF WORKING ON BEHALF OF IT'S CITIZENS -- SORRY MR. PRESIDENT AND ALL YOU LEADERS YOU HAVE BEEN SITTING AND WATCHING OUT MOSTLY FOR YOURSELVES.
AMERICA needs to watch out for the Clinton style of politics. She's taking loans from herself. This is what I am talking about. How many New Yorkers have been taught to make themselves so wealthy they can take a loan out from their ownselves?
I BABINI 02:47:31 AM May 13 2008
THE OIL COORPORATION KNOWS WHEN BUSH IS GONE THEY CANNOT STILL FROM THE PEOPLE ANY LONGER AT LEAST HERE IN THE USA--SO THEY ARE NOW FILLING THEIR VAULTS AND BUSH WILL NOT STOP THEM__HE WILL BE GETING FINANCIAL AWARDS FOR LETING IT HAPPENS.
STILL TIME TO IMPEACH THE SHIT HEAD.
Wyoed1 12:44:41 AM May 13 2008
I guess if you think there are no high paying jobs in this country anymore, come to Wyoming and become a school teacher for a starting wage of 44 thousand a year, or if you are a strong and vibrant indivudial, go to work in the oil fields for a starting wage of 33 dollars an hour with a gaurantee of 12-15 hours a day. For the not so skilled, go to work at McLand for 10.50 an hour. But you do have to have the first 100 bucks for the gas tank to get here. After that keep feeding the econmy and keep Wyoming out of any recession.
Golferzing 12:43:47 AM May 13 2008
AOL SUCKS. Big Time. Doom n Gloom jerks. It won't help in November. Yes we McCain, you arseholes.
Clwnfshy 12:39:25 AM May 13 2008
WELL NO KIDDING YOUR A BRAIN!! WHO CAN AFFORD TO WASTE MONEY WHEN THERE PUTTING A HUNDRED BUCKS IN THE GAS TANK TODAY???? AND THERE ARE NO JOBS THAT PAY ANYTHING IN AMERICA ANYMORE...
Wyoed1 12:25:05 AM May 13 2008
Then OJ should do well as a politian. If he's a theif, he'll fit right in with all of the ones in office........LETS VOTE