Sep 21 2010

The recession is over… right?

This article on CNN Money declares that the recession is over, and has been since June 2009. Lasting 18 months, it was the longest recession since the the Great Depression.

Something tells me that although technically speaking the economy is improving, it doesn’t seem like everyone is a-ok just yet.

For one thing, unemployment is still high: The national rate in August was 9.6%. The rate has hovered around that mark for the year.

In Allegheny County where I live, the rate was 7.2% in July. But in the state, there are more than 20 counties with rates higher than 10% — Cameron County is at 18.9%! And Pennsylvania is doing better than a lot of states.

There are still plenty of mortgage-holders who are underwater on their houses. Some of them will continue to make their payments and wait for their home values to recover (hopefully); others will decide it’s not worth it and will default.

Other people are staying in houses that they can’t really afford, but they know that they can’t sell now, either.

And let’s not forget all the consumer debt Americans have — credit cards, car loans, student loans, medical debt. It’s not pretty.

So while the economy may technically be on an upswing, I’m not holding my breath that we’ll all be seeing good financial times in the near future.

The massive debt problem, unemployment situation, and housing issue need to be resolved first.

What can we do? Continue living below our means. Stop borrowing money. Build up a healthy emergency fund. Don’t buy houses that are a stretch to afford. Pray.

Is the recession “over” where you are? How have the last few years treated you financially?



3 Responses to “The recession is over… right?”

  1. I definitely don’t think the recession is over. My job is to help people find jobs…and it’s not easy, due largely to that reason. I have noticed things picking up around here a little bit, but certainly not enough to declare the recession over.

  2. Thanks for positing this. I also wondered how we can say that the recession has been over for more than a year and the unemployment rate is still sky high. I am in NYC and my attorney boyfriend has been out of work for almost 2 years. He was a good saver, but has over 100K in law school debt and we have high living costs. It’s very tough for us.
    Ashley´s last post ..Mom Mom Boots would be so proud!

  3. The recession still isn’t done over here. I’m laid off from my factory job, making side money doing massages (going to school for it), but isn’t paying what it should just yet. Several of my friends are completely jobless and it doesn’t look “better” than it did a year ago.

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Hey! I'm Kacie, wife to Shane and mother to Jonathan (7), Vivienne (5) and Amelia (2) . I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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