Kevin's Watch

My job is safe, and the company's still on target for the financial year so I still got my pay rise on April 1.

The biggest thing I've noticed the rising cost of little things, like dairy products (around 20% of NZ's economy is dairy, most of which is all one company, who took a huge hit) and meat. We bought a block of cheese this week when we went grocery shopping, which is a luxury since cheese has almost doubled in price over the last year. I can almost get lamb cheaper, and I never eat lamb unless I eat out as it's too expensive to buy at the supermarket.

So really I'm pretty lucky, but I'm gutted for all those people (here in NZ and elsewhere) that haven't been.

We're ok. Mr Seareach works for an established company and has been there long enough to not be effected by layoffs for a while. And since his company deals with government projects, which are on the go regardless, he's aok.

I've been lucky enough to pick up work since Feb...and have quit complaining about it because I know there are people out there who want jobs and don't have them.

Oz is being effected by this economic downturn--there are people being laid off--but probably not as bad as in the US and UK. That said, Mr Seareach and I are doing what we always planned to do (this was a plan we had prior to this slump): we're planting fruit trees on our block, establishing a large vegetable garden, will get some chooks etc. The less we have to spend on all these things (as grocery prices definitely are appreciating here at a ridiculous rate) the better.

It probably helps that we live a relatively frugal lifestyle: we're lucky to eat out/get takeaway once a month, we don't go out much (if ever), we don't buy many luxuries. Then again, we have a car loan, a mortgage, a loan from Mr Seareachs' father, and exuberant toll and petrol charges to pay.

But I wish everyone who is out of work luck in finding something, and those who have their jobs I hope you keep them!

Loremaster wrote:

Cail wrote:I know a lot of people who've got it far worse than we do.

My apologies! I wasn't implying anything with my question, so please take no offence. If anything, I was just curious.

None taken Lore. I was just commenting that I don't have it nearly as bad as others.

My income hasnt really gone down too much -- I gave myself and my partner a 15% decrease just to help keep more money in the business. I am spending less at home and saving more so if something does happen, we are prepared. I think many in the US are doing the same -- saving money to prepare for the worst. and this also directly affects the economy. Businesses that rely on impulse purchases and niceties cant survive when people are in thrift mode.

What really affected me was the freakin BANKS! I have always paid my comapnay (and personal) bills early or on time, never late. ever. I have a Line of Credit with the bank as most companies do, primarily so if my customers are slow paying I can make sure my employees get paid on time. I dont want to pay them even a minute late because without them, we can't stay in business.

So I go to the bank with my good credit and having been a great customer, and ask for a raise in my line of credit. I filled out the paperwork, and sure enough in 4 days, I got a very nice letter from the Bank:

"There are indications that the financial stability of your company has changed and therefore, under the conditions of our contract, known as a default, we hereby have frozen your current line of credit. You should continue to pay at least the minimum payment on your line until a review of your situation has been consducted and we decide whether to close the account or reinstate it. To aid us, please fill out this mountain of paperwork and submit your last 3 corporate tax returns. We will be in touch."



I got my credit report on my company -- it was SPOTLESS. I haven't ever been late. These ba$t@rds were doing this across the board to any company they could to reduce their own risk. I flew into a rage and went downt to the bank, took my credit report, and basically told them to reinstate it or I was moving my business, which is actually a great account: 5 employee credit cards, 3 checking, 2 saving and a line of credit that is always paid on time. They told me their business manager would get back to me to discuss my concerns. I am still waiting for him to call.


The problem is, many small companies can't survive without a line of credit becasue their customers are paying slow, and if they can't pay their employees and vendors on time, then their credit slips, and their employees get nervous. Once your credit slips and you get behind, then you begin losing jobs because you can't purchase the things you need to do the jobs. Then employees, who sense things are bad, begin looking for other jobs. Their mood is bad and productivity suffers. Its a vicious cycle and, if prolonged, it just gets worse until the company tanks.

I can see how honest, hard working business owners are starting to go under because of how the banks and credit card companies are screwing them to keep themselves afloat. They are so fat and bloated from years of screwing us that this recession is really killing them, so they are now tapping thier customers for all they are worth.

SO I am now looking at other banks, and also deciding if I want to sell some of my assets in the business to raise some capitol so I dont have to rely on a line of credit. Screw them, I will learn to live without them.

Jesus. That's really appalling, iQ.

Jeez, iQ, that's ridiculous. I hope you can find a less ridiculous bank to do business with.

Banks have *always* been in the business of squeezing money from depositors. I love how they treat small depositors like cash cows. Particularly if you bounce a check: between $30 and $35 for the bounce, the same for the second time it's put through, the same for the other two or three checks/debit card transactions that subsequently bounced because the first fee overdrew your account, and on it goes. And they're in no hurry to let you know that it's happened, either -- they would rather send you a little note in the mail, which you'll get a couple of days after the initial bounce, so that they have more time to run up your fees. Sometimes even if you make a deposit on the day of the bounced check to cover the overdraft, they'll charge you the overdraft fee anyhow. Bloody bastidges.

Well, I haven't had a job for a few years now and I'm a dependent college student, so mostly the economic downturn only affects me as much as it affects my parents, which isn't too much. They both have pretty secure jobs, and haven't had many pay/benefit cuts.
My own personal savings are getting a bit slim, and I'm not too confident that I'll be able to find a summer job, but I think as long I as I keep to my current spending habits (which are cheap and infrequent) I'll be fine until I graduate in December and have to find a real job. If I don't find a job this summer, I'm probably going to spend my summer sending out job applications for after I graduate.

aliantha wrote:Jeez, iQ, that's ridiculous. I hope you can find a less ridiculous bank to do business with.

Banks have *always* been in the business of squeezing money from depositors. I love how they treat small depositors like cash cows. Particularly if you bounce a check: between $30 and $35 for the bounce, the same for the second time it's put through, the same for the other two or three checks/debit card transactions that subsequently bounced because the first fee overdrew your account, and on it goes. And they're in no hurry to let you know that it's happened, either -- they would rather send you a little note in the mail, which you'll get a couple of days after the initial bounce, so that they have more time to run up your fees. Sometimes even if you make a deposit on the day of the bounced check to cover the overdraft, they'll charge you the overdraft fee anyhow. Bloody bastidges.

unfortunately, I think most banks and credit card companies are doing similar things. I am going to shop around, as well as see what I can do to relieve the need to rely on a line of credit, which is hard -- it means you need a lot of money in the bank to fall back on when customers dont pay. I think I am going to start negotiations with my customers as well to see if I can fix some of the slow payers.

Good luck, iQ.

Auleliel wrote:If I don't find a job this summer, I'm probably going to spend my summer sending out job applications for after I graduate.

Will you be a senior next year, then?

Magickmaker will be a junior in the fall. She's going to spend the summer working on campus as an RA. Next year she'll get to boss the RAs around. (The two jobs are not related, btw. She'd be an area coordinator next year regardless of whether she stayed on campus this summer.)

aliantha wrote:

Auleliel wrote:If I don't find a job this summer, I'm probably going to spend my summer sending out job applications for after I graduate.

Will you be a senior next year, then?

I'm already a senior, but have to stick around an extra semester for my student teaching. I was originally planning to graduate in May, but was unable to finish all the coursework prior to this semester.

Big effects here. Last fall, my employer "failed" and was absorbed by a competitor. They kept me long enough to help them absorb our operations in my region, but then showed me the door.

The shares I had in the former company (equity awarded over the years as a retention incentive) are all worthless. This was certainly not the whole nest egg -- I know enough to diversify my investments (such as they are...) -- but everything took a big hit in this downturn.

Sure, I will land a new position when the tide starts to rise again and can tread water until then...but I'm not too happy about it. Retirement, which was looking a lot closer than it did those decades ago when I was about to graduate (Enjoy those last few months, Auleliel) will now be considerably later than I'd planned.

Savor Dam wrote:Big effects here. Last fall, my employer "failed" and was absorbed by a competitor. They kept me long enough to help them absorb our operations in my region, but then showed me the door.

The shares I had in the former company (equity awarded over the years as a retention incentive) are all worthless. This was certainly not the whole nest egg -- I know enough to diversify my investments (such as they are...) -- but everything took a big hit in this downturn.

Sure, I will land a new position when the tide starts to rise again and can tread water until then...but I'm not too happy about it. Retirement, which was looking a lot closer than it did those decades ago when I was about to graduate (Enjoy those last few months, Auleliel) will now be considerably later than I'd planned.

That sucks . Sorry man. I have seen both my retirement accounts and my wifes drop by 40%. I know you are supposed to keep buying into it, but it feels too much like throwing it ito a garbage disposal to me.

I invested some of mine in real estate and I think that one is safe at least.

iQuestor wrote: 8. I have an office in Tampa, and I used to go down there each month. I have reduced my trips down there and tried to take care of things in other ways rather than showing up personally.

What? And you never thought to visit me? Sheesh!

He knows how insanely jealous I get.

dANdeLION wrote:

iQuestor wrote: 8. I have an office in Tampa, and I used to go down there each month. I have reduced my trips down there and tried to take care of things in other ways rather than showing up personally.

What? And you never thought to visit me? Sheesh!

dAN! I guess I didnt realize you were there! Lets have a beer next time and make Cail jealous.

Bastards.

You're welcome to show up too, Cail.

Well then.....

OMG, I'm conjuring another one of those mental pictures....

Savor Dam, that sucks. Hope you find a new gig soonest. And the same hope goes out to the other Watchers who are on involuntary furlough right now.

I took out a loan against my 401(k) early last year to pay off some credit card debt. Turned out to be a smart move -- I'm now paying myself back at 3% interest instead of watching it all go down the tubes. Who knew I was such a financial genius?

Very sorry to hear your bank is being so unreasonable, iQ.