Beware the Second Wave of the Recession

Lately there seems to be a sense that perhaps the worst of the recession is behind us. Consumer sentiment is up and the jobless rate is falling in many places. People are relaxing a bit and thinking that we might soon be back to business as usual. They’re heading out to the malls and taking vacations again. I don’t want to be a gloom and doomer, but I would advise you to beware of the second wave.

Many people who recently heaved a sigh of relief that they had made it through the recession unscathed are now losing their jobs. Many who thought that their job was recession-proof are finding out otherwise. The problem is that while many employers are beginning to recover, many are ju

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9 Responses to Beware the Second Wave of the Recession

  1. Stephan says:

    great post, and i think this is something that people should remember even if the economy is heading towards a recovery without another dip. people should never think that their jobs are safe, that the economy is great, and that they can start taking on new debt. this is what led us into this mess in the first place, so i hope everyone has learned a lesson about PF.

  2. Elisabeth says:

    Alot of public workers who have put in 15, 30 or even 40 yrs are about to see their public pensions changed. Ages will rise 5-20 years depending on the state and their age requirements now. I think Social Security will be increasing their age requirements and raising the age of qualifying for Medicare. Almost all the programs are in trouble. Working in the public schools in Maryland I can tell you that teacher layoffs are already here and have been for 1-2 years. A friend in Florida talks about major layoffs that have leveled off enough for some teachers to be called back to work. She thinks its because they over reacted not because things are truly better.

  3. Isela says:

    I believe you are right!

    I have seen some of my friends suddenly relax, and then get totally freak out when a new sign of the recession “suddenly” appears.

    Great post!

  4. Rick says:

    Good Article.
    We have been putting money away in an emergency fund so we can survive the next downturn.

  5. rob62521 says:

    I can say this is certainly true in my city. I’m a teacher and big cuts came this year and we were “saved” this year because we had almost 100 employees retire — most were at the top of the salary schedule. However, with the state of Illinois not giving the school districts the money they promised, I’m sure more cuts will be coming next year and possibly deeper. Our city is losing different businesses because people aren’t spending because they have either been let go or are afraid they will be.

  6. FinanceFreak says:

    Unfortunately, the oil spill will quash further drilling thus driving up prices at the pump thus further exacerbating a possible double dip recession.

  7. Anthony says:

    Well put, as I also fear that the after shocks of the greatest recession will make their ways deep into 2011. Hang tight people!

  8. sewingirl says:

    My son was laid off for an entire year, has been back to work for about 6 weeks, and it looks like hes going to be laid off again! That doesn’t sound like a recovery to me!

  9. Phil Peterson says:

    What we’re experiencing now is the new “normal”. And to add to more sadness, most of the jobs that were added were in the government sector. Don’t even expect things to greatly improve for at least 5 years. Until then, we’ll see good signs followed by more set backs, then a few more good signs, then set backs…it will be a zig zag of this sort for a very long time. Our youth as a group are disillusioned and don’t have the drive to succeed that prior generations had. This is important because it is this up and coming generation whose work will energize to social security coffers for us older set…spooky, to be sure.

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