Foehammer said:
Unemployment is still in the single digits unless I missed something
You mean
rate, right? Even so, 6% unemployment is nothing to shake a stick at.
The unemployment rate in the US is very misleading. You are only counted as unemployed if you are using the unemployment center for something, like getting a unemployment check or looking for a job through the unemployment center. Once your checks run out, or if you don't qualify, and you aren't looking for a job through them, you are no longer unemployed. Also, gauging the employment situation in your area by looking at help wanted signs, really isn't a great way to do it. Most of those signs are for part time, entry level low paying jobs like retail clerks who are in demand because of the coming Christmas rush. They don't represent good paying, family supporting jobs.
Sure, there are millions of people who are doing just fine right now, buy even if you are doing fine, if you loose your job, you will have a lot of competition finding another and that is what scares people. That is why people are saying that they plan on spending less money this year for the holidays then they did last year.
I tend to be financially conservative and I personally would like a bigger cushion if something goes wrong in my life, than have a new toy. Some people aren't in the same boat, like students and young people living at home and some are and still don't worry. But I don't think I'm so conservative that I am the only one who is going to put off unnecessary purchases until things start to look a little brighter. I also realize that people are sick of hearing about it, but that doesn't change anything that will or won't happen. Being prepared looks silly if nothing happens, but you're much better off when it does.
The lower cost of energy has been a big help for many folks and is helping a lot with people heating and gasoline costs and has put a lot of extra money that people didn't know they had into their pockets. But, it is the bad economy, at least in part, which has created a glut of oil on the market and the lower cost that comes with an imbalance of supply/demand. Over the summer, people were worried how they were going to pay 1000 a month heating oil bills. That has been the one silver lining in the cloud.
Chris
