E90Post
 


 
BMW 3-Series (E90 E92) Forum > BIMMERPOST Universal Forums > Off-Topic Discussions Board > Just how bad are things in the US?



Reply
 
Thread Tools Search this Thread
      03-05-2009, 08:07 PM   #1
SPQR M3
First Lieutenant
SPQR M3's Avatar
Australia
43
Rep
330
Posts

Drives: 2009 E92 325i
Join Date: Jan 2009
Location: Australia

iTrader: (0)

Just how bad are things in the US?

Here in Australia, all we read about is how bad the US economy is. I know the media always makes things out to be worse than they actually are, but I was wondering how bad things are from "the street"? I know I am asking on the wrong forum, since most people who own an M3 probably have money and a secure job, but I'm really interested in seeing things from a "normal" person's perspective.

In Australia, the economy is not too bad - yet. We have been protected by strong banks (none gone under yet), and our strong exposure to China, which is softening the blow.
Appreciate 0
      03-05-2009, 08:14 PM   #2
Blake
Banned
No_Country
750
Rep
4,649
Posts

Drives: Chevy Aveo
Join Date: May 2008
Location: Parent's Basement

iTrader: (7)

it's pretty bad, all things considered. the dow jones hit a 12-year low today. it's weird to think the average was over 11000 just a year ago and we're looking at an average of low-6000 today. there are blocks of houses that are either for sale or foreclosed with no end in sight. it's not that there aren't buyers, it's just that if you don't have 20% or more to put down on a mortgage, there isn't a bank in the land that will even look at what you have to offer, unless you have near perfect credit and high LTV. it's pretty crazy...i hope this is a once in a lifetime event. whole states are near bankruptcy!
Appreciate 0
      03-05-2009, 08:15 PM   #3
number335
Second Lieutenant
number335's Avatar
20
Rep
254
Posts

Drives: E92 Coupe
Join Date: Mar 2008
Location: Orange County, CA

iTrader: (0)

It's pretty bad here. Our company had to do some layoffs for the first time in 70+ years of business and we have a freeze on wages. I once thought I had a secure job as long as I worked hard and didn't screw up...not anymore. Real estate values have plummeted and there are thousands of people out of work.
Appreciate 0
      03-05-2009, 08:21 PM   #4
Citizen Z
Alpine Master
Citizen Z's Avatar
United_States
109
Rep
1,310
Posts

Drives: '08 135i AW Sport
Join Date: May 2008
Location: Kansas

iTrader: (1)

Its doing better than what the news would lead you to believe. The dow being up or down doesn't really impact people on a daily basis other than to depress them because they just finished watching a TV show on how bad things are, not because their life actually sucks. Compared to other recessions, unemployment is surprisingly low. Negative news gets lots of play but I haven't heard many people talking about how their relatives or friends are laid off and had to move across country to live with their parents or siblings or crazy shit like happened in the Great Depression.
__________________
Alpine White with Taupe Leather 135i, Sports Package, Heated Seats, Comfort Access, iPod Adapter

Fastness: http://www.1addicts.com/forums/showthread.php?t=252727
Appreciate 0
      03-05-2009, 08:27 PM   #5
Mega Man
エアーマンが倒せない
Mega Man's Avatar
United_States
268
Rep
2,041
Posts

Drives: 2009 135i
Join Date: Oct 2008
Location: SoCal

iTrader: (7)

Garage List
2009 135i  [0.00]
It's pretty bad where I work too...everyone stays overtime not because they want overtime pay, but because we need to show our usefulness and commitment to our company (lay off coming soon!).
Appreciate 0
      03-05-2009, 08:36 PM   #6
johnnymu
Warranty Killer
johnnymu's Avatar
Taiwan
124
Rep
1,015
Posts

Drives: Nike shoe
Join Date: Jun 2007
Location: cincinnati, OH

iTrader: (4)

Quote:
Originally Posted by Citizen Z View Post
Its doing better than what the news would lead you to believe. The dow being up or down doesn't really impact people on a daily basis other than to depress them because they just finished watching a TV show on how bad things are, not because their life actually sucks. Compared to other recessions, unemployment is surprisingly low. Negative news gets lots of play but I haven't heard many people talking about how their relatives or friends are laid off and had to move across country to live with their parents or siblings or crazy shit like happened in the Great Depression.
Maybe you haven't but I hear it everyday. Just a typical day driving through my community I can visibly notice a difference, less retail store operational, less cars at the mall, car dealership closed. I have to deal with more crimes now personally cause 2000 inmates were released early here. Yes, I noticed higher crimes in my business cause of this.

I have affiliation with major food distributors and we have these kind of discussions all the time. Coca-Cola, Pepsi have both cut jobs, Sysco distributor has lost 15% accounts due to closings of restaurants. My mailman fear of job security cause he's on the end of the totem pole. My post office also layed off 20%(employees that has been with the company three less than 3 years),My mail is constant late or sent to wrong locations. Other distributors I don't deal with anymore cause of bankruptcy.

Perhaps you just don't talk to the right people but everyday I hear a different story and I see it with my own eyes.
__________________
EUROPROJEKTZ Midwest Member
08 335i Jet Black | too much to name....

Appreciate 0
      03-05-2009, 08:39 PM   #7
Hawkeye
Brigadier General
Hawkeye's Avatar
No_Country
2070
Rep
4,365
Posts

Drives: '07 Z4 Coupe, '21 X3, '16 GMC
Join Date: Aug 2007
Location: Iowa

iTrader: (0)

Garage List
Quote:
Originally Posted by Blake View Post
it's pretty bad, all things considered. the dow jones hit a 12-year low today. it's weird to think the average was over 11000 just a year ago and we're looking at an average of low-6000 today. there are blocks of houses that are either for sale or foreclosed with no end in sight. it's not that there aren't buyers, it's just that if you don't have 20% or more to put down on a mortgage, there isn't a bank in the land that will even look at what you have to offer, unless you have near perfect credit and high LTV. it's pretty crazy...i hope this is a once in a lifetime event. whole states are near bankruptcy!
Banks here will do 95% financing, I don't know what kind of banks you are looking at...?

BTW, don't you want a low LTV instead of a high one? (I am assuming you are talking about Loan To Value, as in the amount of the loan compared to the value of the asset you are borrowing againt?)

Around my area I would say it is not too bad (midwest). Not too many foreclosed homes, but then again I think people in the midwest are *generally* smarter about their finances and live within their means... or it could just be that everything is cheaper here. Of course there are always outliers to every rule (like me who pretty much spends as much as I make at this point in time)
__________________
2007 Z4 3.0si Coupe • 6 MT • Black Saphire Metallic • PP • SP
2016 GMC Sierra SLT Z71 Premium Plus 4x4
2017 Harley StreetGlide • Denim Black • V&H Tune
2021 BMW x30i • Phytonic Blue Metallic • Fully loaded
Appreciate 0
      03-05-2009, 08:45 PM   #8
number335
Second Lieutenant
number335's Avatar
20
Rep
254
Posts

Drives: E92 Coupe
Join Date: Mar 2008
Location: Orange County, CA

iTrader: (0)

The dow being up or down impacts people's investments/savings and company capital. It's a spiral effect. People are losing money and are afraid to invest, which in turn prevents companies from investing/utilizing that capital they normally would have and end up downsizing. Downsizing means layoffs and less spending and more government intervention, which means more taxes. The dow isn't just some frivolous number.
Appreciate 0
      03-05-2009, 08:46 PM   #9
Blake
Banned
No_Country
750
Rep
4,649
Posts

Drives: Chevy Aveo
Join Date: May 2008
Location: Parent's Basement

iTrader: (7)

Quote:
Originally Posted by Hawkeye View Post
BTW, don't you want a low LTV instead of a high one? (I am assuming you are talking about Loan To Value, as in the amount of the loan compared to the value of the asset you are borrowing againt?)
yes yes, sorry for confusion. i was writing fast.
Appreciate 0
      03-05-2009, 08:47 PM   #10
cougfan335
First Lieutenant
cougfan335's Avatar
United_States
10
Rep
326
Posts

Drives: 335i Coupe MT, Montego/Saddle
Join Date: Mar 2007
Location: Reno, NV

iTrader: (6)

I would say it is pretty bad. If you want to sell your house you have to take it in the shorts. I have friends who have accepted 3 offers and no one could get financing on a $200k condo. My Dad is 55, talking to him retirement options are looking ugly with the uncertainty in the stock market. He's lost 1/3 of one of his retirement accounts.
__________________
e92 335i: Montego, Saddle Brown, Burl Walnut, MT, Sport, Prem, CW, PDC, Rear Shade. Mods: JB4, BMS Dual Intake, Cyba Scoops, Beyern Mesh Chrome 19" wheels, 15% F1 tint, LeatherZ weighted shift knob, body color reflectors, Matte black grill with Montego surround, middle lower grill removed, left and right lower grills painted black.
Appreciate 0
      03-05-2009, 08:53 PM   #11
Aija
Captain
29
Rep
687
Posts

Drives: 335Coupe 6-Speed!
Join Date: Jan 2006
Location: California, Bay Area

iTrader: (0)

There is definately a noticable difference on how things were 4years ago as compared today.

-You see more discounts on clothes, shoes. Despite the discounts, people arent shopping as much as before (even when they were much more expensive)

-Everytime you turn on the news...this company is laying off X amount as the other company is laying off Y amount.

-Grade Schools are cutting back on programs like sports.

-Public colleges are cutting back on admitting students

-Used car values is trashed.

Just the other day i went to the valley. What used to be a brand new neighborhood with every house having people living in it is now empty. Literally, I went to see this one neighborhood, EVERY HOUSE was foreclosed in that block
Appreciate 0
      03-05-2009, 09:05 PM   #12
Rawhide
Captain
Rawhide's Avatar
United_States
360
Rep
786
Posts

Drives: 2022 M340ix
Join Date: Nov 2008
Location: USA, KC

iTrader: (0)

Just hope we collapse like the Soviet Union in a fairly quiet way and not go super-critical.
Appreciate 0
      03-05-2009, 09:07 PM   #13
ideliver
Major
ideliver's Avatar
238
Rep
1,247
Posts

Drives: E60 M5, E71 X6M, E46 M3
Join Date: Feb 2008
Location: At the gas station

iTrader: (0)

Garage List
2006 BMW E46 M3 'vert  [0.00]
2008 BMW M5  [0.00]
2011 BMW E92  [0.00]
2012 BMW X6M  [0.00]
2003 E46 M3  [0.00]
16% unemployment in my county and climbing....
__________________
Current: 2006 E46 M3 'vert 6-sp 2008 E60 M5, 2011 E92 328 6-sp, 2011 E70 N55, 2012 E71 X6M

Appreciate 0
      03-05-2009, 09:11 PM   #14
johnnymu
Warranty Killer
johnnymu's Avatar
Taiwan
124
Rep
1,015
Posts

Drives: Nike shoe
Join Date: Jun 2007
Location: cincinnati, OH

iTrader: (4)

The dealer where I got my bmw is closing
Some public schools are combining as one and taking in double the capacity amount needed.
__________________
EUROPROJEKTZ Midwest Member
08 335i Jet Black | too much to name....

Appreciate 0
      03-05-2009, 09:32 PM   #15
cougfan335
First Lieutenant
cougfan335's Avatar
United_States
10
Rep
326
Posts

Drives: 335i Coupe MT, Montego/Saddle
Join Date: Mar 2007
Location: Reno, NV

iTrader: (6)

Luckily things are going to turn around any day now. The gov't has yet to meet a hole we can spend our way out of.
__________________
e92 335i: Montego, Saddle Brown, Burl Walnut, MT, Sport, Prem, CW, PDC, Rear Shade. Mods: JB4, BMS Dual Intake, Cyba Scoops, Beyern Mesh Chrome 19" wheels, 15% F1 tint, LeatherZ weighted shift knob, body color reflectors, Matte black grill with Montego surround, middle lower grill removed, left and right lower grills painted black.
Appreciate 0
      03-05-2009, 09:45 PM   #16
M_Six
Free Thinker
M_Six's Avatar
United_States
16537
Rep
7,447
Posts

Drives: 2016 MB GLC300 4matic
Join Date: Jan 2009
Location: Foothills of Mt Level

iTrader: (0)

A lot depends on where you live. Out here in corn country the housing market never went ballistic, so there has been no major slump, although new construction is off a bit. Still, prices have remained fairly steady. Unemployment isn't too bad, but that's because two of the major employers are universities. There has been one plant shutdown in my town that cost some jobs and Caterpillar just north of here had a big layoff. Otherwise it hasn't been bad. Still some major construction going on at my university, so most people should be safe for a while. No idea how hard it is to get a home loan now, though. We've thought about an equity loan, but that may be something we wait a bit on.

The real killer is the beating our retirement accounts are taking. My wife has lost a ton. Her fund is bleeding money as fast as she contributes. The conventional wisdom is to ride out the rough times, but at some point you have to stop throwing good money after bad.
__________________
Mark
markj.pics

"There is no shame in dropping fruit in your glass."
-UncleWede
Appreciate 0
      03-05-2009, 10:35 PM   #17
jlaw
First Lieutenant
United_States
29
Rep
351
Posts

Drives: F80 M3
Join Date: Aug 2007
Location: Miami, FL

iTrader: (0)

Things are HORRIBLE.

Appreciate 0
      03-05-2009, 10:50 PM   #18
UncleWede
Long Time Admirer, First Time Owner
UncleWede's Avatar
United_States
17874
Rep
9,376
Posts

Drives: G01 X3 M40i Dark Graphite
Join Date: Jun 2005
Location: Oxnard, CA

iTrader: (0)

My two younger brothers (38, 30) are probably moving in with the parents. Older one is filing chapter 7 to try and save a single investment house in Montana. Other was a DJ but they cut his live hours to less than 20/wk so they don't have to pay benefits. But while he's there, between songs, he has to record voice overs so his voice is on the air 40/wk.
My city cut some serious money, and started to charge people for services. We had to get City Council to pass a new rule about the home buyer assistance program because so many were defaulting and not telling the City. The City Manger did say about a week ago that as long as we don't get reprimanded, we have a job for at least 5 years, but none of his peers in the area could say the same. Sicne you aren't buying as many BMWs, there aren't as many coming thru the city, so we aren't making as much tax on the transport.
Appreciate 0
      03-05-2009, 10:51 PM   #19
mpimping
Banned
South Korea
812
Rep
336
Posts

Drives: gti
Join Date: Sep 2006
Location: ny,ny

iTrader: (0)

http://www.ajc.com/metro/content/met...ousgeorge.html
Appreciate 0
      03-06-2009, 03:14 AM   #20
SPQR M3
First Lieutenant
SPQR M3's Avatar
Australia
43
Rep
330
Posts

Drives: 2009 E92 325i
Join Date: Jan 2009
Location: Australia

iTrader: (0)

Hmm..sounds pretty bad overall.

In Australia we are not doing too bad in our housing, because we have different laws. If you buy a house here with a deposit (ie down) of 20% or less, you get hit with mortgage insurance which you have to wear, and it protects the banks from default. But the major difference between the US and Oz is that over here, if the bank forecloses on you, and the house is sold for less than what you owe, they will pursue you for the difference - from what I understand, in the US, you simply return the keys to the bank and it's then their problem - is this correct?
Appreciate 0
      03-06-2009, 07:51 AM   #21
darkcloud
Colonel
darkcloud's Avatar
United_States
335
Rep
2,385
Posts

Drives: 09 VW JSW
Join Date: Aug 2006
Location: cleveland, oh

iTrader: (2)

Garage List
2006 325i  [0.00]
Quote:
Originally Posted by SPQR M3 View Post
Hmm..sounds pretty bad overall.

In Australia we are not doing too bad in our housing, because we have different laws. If you buy a house here with a deposit (ie down) of 20% or less, you get hit with mortgage insurance which you have to wear, and it protects the banks from default. But the major difference between the US and Oz is that over here, if the bank forecloses on you, and the house is sold for less than what you owe, they will pursue you for the difference - from what I understand, in the US, you simply return the keys to the bank and it's then their problem - is this correct?
We have mortgage protection. It's called PMI here. The problem is they didn't require the way you do it up until rather recently. They used to only give PMI to high risk buyers unless they put 20% down. Now they give it to pretty much everyone unless you have 20% to put down.

My wife and I recently bought our first house. It was a family members that had to go to a nursing facility. Our bank gave us a loan of $275k, the main house we were looking at was $210k w/no PMI because of the neighborhood w/only 5% down. The family members house we ended up buying we payed >$100k(not because of the value of the home, she gave us a great deal because she wanted a quick sell and didn't need all the money) and they slapped us with PMI, confusing yes. I was also pissed because it made no sense, I also have a credit score of +770.


Forclosures here are all different. But yea, basically they just give the keys back and walk. They'll typically trash the house too, which is a shame. Then depending on the neighborhood if the house isn't secure people will break in to rip the copper pipes out and steal the aluminum siding to scrape it all. That's solely the ghetto though.
__________________

retired 06 E90 325i

New: 09 VW Platinum Grey Jetta Sportwagen 2.0T SEL w/DSG, panoramic sunroof and Ipod adapter
Appreciate 0
      03-06-2009, 09:33 AM   #22
Seminole
Colonel
Seminole's Avatar
United_States
446
Rep
2,032
Posts

Drives: Red Flyer
Join Date: Aug 2008
Location: 38.8977° N, 77.0366° W

iTrader: (2)

Garage List
2008 E90 328i  [7.00]
Quote:
Originally Posted by cars4lyfe View Post
If and when this mess ever gets resolved, there should be a new law: you must put up at least 20% down payment to buy a house on, say, a house worth $600K and 40% down on a house worth 300K. This will prevent another bubble from ever re-occurring in the residential side of real estate.
You do realize that is that is the same amount of money down on each house in your senario... $120,000 each. Why wouldn't someone just go get the $600,000 instead.
__________________
Appreciate 0
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 12:15 PM.




e90post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST