US Economy is Barely Treading Water But There May be Positive Effects!

The US economy has been treading water forspending, but haven't made significant lifestyle
the past couple of years with conditions continuingchanges
to decline. Fuel costs and the foreclosure rate are- 3% were unsure how higher gasoline prices
acting as undercurrents. There are currently nohave affected their lifestyle and spending habits
economic indicators showing a light at the end of 
the tunnel. While this does not mean that relief isThe foreclosure rate is the highest it has been
non existent, it is highly unlikely that conditions willsince the 70's. After a five year boom the
improve in the very near future. These timeshousing market plummeted two years ago. People
may bring a sense of insecurity, however, theydepend on their home as their major investment.
may also bring us as Americans back to a moreIn a time of need they were able to sell their
conservative way of thinking.home to help them get back on their feet. An
As Americans we tend to live a bit beyond of ourestimated 15% of homeowners are finding that
means. We have nice cars, decorated homes,they now owe more than their houses are worth.
stylish clothes and dinner at restaurants. We alsoThis number is projected to increase drastically
carry credit card debt, second mortgages, homeover the next few months. Furthermore, for
equity loans and save less than we should ifmost, the mortgage is the single largest payment
anything at all. Due to the economy being sothey make per month and the percentage of
strained over the past couple of years andmortgage holders who are delinquent in their
continuing to decline we are being forced intomonthly payments has also increased to a rate
much more conservative spending habits.that is the highest on record since 1979.
Fuel Costs and the Foreclosure Rate are the twoHomeowners are cutting back spending in light of
major issues on the forefront.the fact that their real estate investment has little
Rising fuel prices are having a ripple effect. Gasto no current value.
prices are affecting overhead costs of businessesA very positive result is possible to have a lasting
who are trying desperately not to pass thiseffect even after the economy is back on its
expense down to the customer. Trucking andfeet. A restored sense of financial conservatism is
delivery businesses are obvious examples buta plausible result. If you know any individuals who
virtually every business is effected whethersurvived the depression you are sure to have
directly or indirectly, ie. the cost of suppliers go upnoticed that he makes use of everything in his
for retailers.possession and purchases out of necessity rather
We are being made aware of the rise in gasthan impulse. We as a nation were in desperate
prices in all walks. Every individual, employer andneed of a reality check. Perhaps this period of
place of business is being affected. It has atime when we are forced to conserve, stretch a
majority of us rethinking our spending anddollar and rethink our regular indulgences will help
rerouting our errands! In an article written by Brianus readjust our wasteful habits.
Carr in February 2008, he reported the results ofThe condition of the US economy is continuing to
a poll that asked "Have you noticed a change indecline. Fuel costs and the disturbingly high
your lifestyle due to higher gas prices?" as follows:foreclosure rate are major concerns. There are
- 36% of people said that they have had tocurrently no economic indicators showing relief in
significantly reduce spending in other areas of theirthe near future. These times may bring a sense
lives due to higher gas pricesof insecurity, however, they may also bring us as
- 32% of people said that they have not had toAmericans back to a much needed more
reduce spending or change their lifestyleconservative way of spending.
- 29% of people said that they have reduced