I was just reading the Timonium Show post, and a lot of posters were using the economy as a reason that there were fewer vendors and attendees. I may be just lucky, but being retired the economy hasn't bothered me much. Gas is up, but I'm not driving 30 miles per day to work - so that balances out. I also save on lunches and other goodies I used to take to work. I was lucky enough to swith my funds to safe CD's, so the stock market hasn't botherred me either. My bank, WAMU, is on that "in trouble" list, but even that's OK with me - have "excess" funds in another bank.
I guess the question I pose is "Are you OK with the economy, or has it impacted your hobby $?"
No effect on me. Gas is lower than $3 a gallon for the first time in 5 years, my investments just went up to 8% payout, and my insurance rates went down. In fact, business is booming, and we can't keep up with the demands. First off, I did not buy a house I could not afford at a variable interest rate, I did not buy a car I could not afford with a lease and balloon payments, I did not jack my credit cards to 95% of the limits and live off credit. So the current "crisis" is of no concern to me. Those who have real money can clean up right now by buying dirt cheap repo property, stock at 5% of last month's value, and Brit bikes at give away prices. Sooner or later this will all blow over and life goes on as normal. Or we can wait until Obama swoops in and rescues us from our own money choices.....
Those ants that were careful with money choices, made good investments and lived frugaly will take the brunt of the economic cost to "save" the grasshoppers that fiddled away the summer. Where is the justice in that? The economy is great, I for one don't want anything to change because it will be for the worst.
The Dixie D Short Line "Lux Lucet In Tenebris Nihil Igitur Mors Est Ad Nos 2001"
I work in the Defense industry, so my job should be secure. Most of my retirement money is pretty conservative these days, and my Merrill Lynch guy advised going to all cash back when the Dow was around 12,000, so I've missed most of the fun over the past couple of weeks. The house is paid for, so I've got no mortgage to worry about. My daughter won't need college money for another year yet, and hopefully the loans will be available again by that point.
I'm finishing up scenery on my layout now. Until said daughter heads off to school, though, I don't have permission to expand the layout. I've already got way more engines and rolling stock than I can fit on my tracks, so all I'm buying is small scenery stuff.
Still, I've got to consider when I'll be retiring. It's still a few years off, but not that far. There's no mandatory retirement age for us, so I'll probably keep going a couple of years past 65, anyway, or maybe switch to part-time to keep some benefits and cash flow, while gaining a bit of extra time for ourselves.
It takes an iron man to play with a toy iron horse.
To agree with Tangerine-Jack, Gas is exactly 3 dollars here. Lets hope we can keep it there for sometime. As i live only an hour away from the Springfield Trainshow in Springfield Mass, I make it there no matter what.
I hope atleast most of the vendors from last year will make an appearance at the show this January, As i have to start my HO collection
Does the economy affect me, well not really. Its more being unemployed. Thats what is making my wife and I watch what we spend. Yeah gas is high, here is southwestern pa gas is $3.29 for 87. Thats better than it was a few months ago. I have a job interview tomorrow morning and I hope to get it.
I had stocks in Dicks Sporting Goods (DKS). It was a old job of mine, and I cashed alot of it out. I watch the news and stocks alot. My wife thinks I'm crazy but at the age of 28, we might have a good look out in the next 10 or more years. All you can do, is hope it all turns around.
"Rust, whats not to love?"
Dr. Frankendiesel aka Scott Running BearSpace Mouse for president!15 year veteran fire fighterCollector of Apple //e'sRunning Bear EnterprisesHistory Channel Club life member.beatus homo qui invenit sapientiam
I have about 3 years until retirement. My 401k has taken a hit(-4.4%), but I moved most of it to bonds/stable value funds last February. Gas is now under $3.00/gallon here in SE Minnesota, but my work drive is only 3 miles(RT) - I put more miles on going to train shows! But filling the SUV up still costs about $50 each time. The big thing for me is if the economy really tanks, there will not be orders for big computer servers, and that may force an 'early retirement' for me. I have been counting on the next 3 years of income to 'feather' my savings some more.
Retirement for me should be pretty good; I have a 'defined' pension, 401k, and SSAN for my basic income. I really have no big bills(house payments/cars), so the 'trains' are my major 'fun' expense.
Jim
Modeling BNSF and Milwaukee Road in SW Wisconsin
I'm doing fine with the economy right now. I'm with Tangerine-Jack. I owe no debt to anyone except phone/internet and cable. Drive a 12 year old car, live in military housing so it's only a 3 minute drive to work. Got 3 kids and we live on a budget. The only problem is the Atlas GP 40-2's in Chessie paint blew the train budget up a little . Business is good right now for an Infantryman and I'll spend at least 12 months in Afganistan. That's when the money will pour in. I still haven't spent all the extra money from my Iraq deployment. My LHS will be happy when I return.
Mike Kingsbury
The price of gas here in Iowa dipped below $2.72 a gallon. Wow, that part has been nice. My Tiaa Creff stock however has dipped a bit, but I've got another 18 years yet to go for retirement, so I'm not worried. When I get about 5 years out from retirement, then I'll go extremely conservative so that if something like this does happen it won't wipe me out. 47% of my portfolio is equity. That is considered "moderate" risk. NOW is a great time to buy. So I'm gonna ride it out.
I've really already purchased all the big ticket train items I'll ever need for my 11X7 layout. Heck I've got enough stuff to double it now if I wanted to. 13 engines all DCC and about 5 sound. Thats plenty for this layout. I pretty much buy what I want when I want. As long as our jobs hold out, but education seems to do better in a recession as people lose their jobs, they tend to go back to school to learn a different trade. So I'm looking for growth at the local community college.
lvanhen wrote: I was just reading the Timonium Show post, and a lot of posters were using the economy as a reason that there were fewer vendors and attendees. I may be just lucky, but being retired the economy hasn't bothered me much. Gas is up, but I'm not driving 30 miles per day to work - so that balances out. I also save on lunches and other goodies I used to take to work. I was lucky enough to swith my funds to safe CD's, so the stock market hasn't botherred me either. My bank, WAMU, is on that "in trouble" list, but even that's OK with me - have "excess" funds in another bank. I guess the question I pose is "Are you OK with the economy, or has it impacted your hobby $?"
Lou,I think this bad economy applies more to the Wall Street fat cats and the fat cat bankers since everything seems to be normal in my area,crowded stores,bars and night clubs still seems to be going full force,down around Delaware,Ohio they are building a new mall and Meijer store.
I also think the News Media plays up the fear factor and hype as well which leads to unnecessary worry in most Americans.
So,for me its business as usual since I don't play the stock market.
Larry
Conductor.
Summerset Ry.
"Stay Alert, Don't get hurt Safety First!"
Value
Supply
Demand
Perception
Opinion
Prediction
Meddling
Confusion
Manipulation
Misinterpretation
Do we need the economy to tell us what to do? Or do we do what we want when we've finished doing what we have to? One should always look at the economy at the personal level first and foremost. After food, clothing and shelter, what is left is discretionary spending. Are we holding back because the TV and radio keep crying the worst economy in the past billion years? Or did we actually find ourselves with less of that discretionary money than before? Ignor those idiots in the media. They all agreed with(names withheld so this post might stand an ice's chance in Hades of staying put)that (more personal pronouns)were solvent and operating well two years ago and now they all proudly proclaim the recession, which hasn't even happened yet!! Confused? Depressed? Anxious? Guess what, worrying about it doesn't change a thing and only makes you less than happy. If we don't have the funds, then we'll just either enjoy what we've got already or go out and get the funds. That's the ideal this country was founded on. Or we can call it a Model Railroading Crisis and beg Congress to bail us out.
NSWRDivision80061 wrote: To agree with Tangerine-Jack, Gas is exactly 3 dollars here. Lets hope we can keep it there for sometime. As i live only an hour away from the Springfield Trainshow in Springfield Mass, I make it there no matter what. I hope atleast most of the vendors from last year will make an appearance at the show this January, As i have to start my HO collection
Gas is down to about $3.15 here. Diesel went from $4.09 to $3.49 in one day! Lets hope that decrease is reflected in our products and shipping costs soon. (I doubt it though) It seems like once they get people used to paying higher prices, they never come down.Working in new home HVAC now, I'm paying more attention to the housing market these days. It seems like the new systems we're installing are for truckers and Defence contractors. They seem to not be hurting for cash these days.I definitely look for the best shipping costs as well as prices these days on my train stuff. I'm getting a lot better deals on new E Bay items these days rather than online hobby retailers. Ordered 20 small details items for $75 and only paid $2 S&H!
Some of my retirement stocks took a hit, but my broker says to keep riding with it and see what this week's market does. If it gets TOO bad, I'll have to transfer them to a CD, but then I'll end up having to pay taxes on it. So yah, I've tightened up a bit and I'm not spending much on hobby items these days. However I went back to work as a Music Minister at my Parish (a pay-gig), so I'll have a little 'mad money' coming in each month that I can put aside for the hobby. Stock-market or no, I STILL have that Sunset Z-6 on order with my LHS and I'm not passing it up! So I'll eat Hamburger Helper for a few weeks. Big deal.
Tom
Tom View my layout photos! http://s299.photobucket.com/albums/mm310/TWhite-014/Rio%20Grande%20Yuba%20River%20Sub One can NEVER have too many Articulateds!
lvanhen wrote:I guess the question I pose is "Are you OK with the economy, or has it impacted your hobby $?"
Mine doesn't move.......it's at the station!!!
Gas has just gone below $3 here in Michigan. I'm seeing 2.89 here and there. Should drop a lot more, with the big drops in crude oil last week. Dropped $8 a barrel on Friday alone. It's kind of funny, how all that demand from China and India, that we were told was driving up oil prices, disappeared almost overnight. Hopefully, those $200 a barrel forecasts, were just a pipedream for the oil companies.
My house and cottage are paid for. Same for both vehicles. Credit cards at zero balance. Seems model railroaders have some old fashioned values, which still apply.
I do feel they deliberately created a crisis atmosphere, in order to rush through a trillion dollar givaway package for corporate america, in the remaining months of a republican administration.
The mortgage crisis was foreseeable. Things that can't go on forever, usually don't! And I think it was deliberate! They kept interest rates artifically low for too long, allowing home prices to appreciate much too fast. Then they encouraged everyone to refinance, and spend the equity in their homes on a lot of consumer crap. They locked everyone into adjustable rate mortgages with big prepayment penaltys. Then it was time to spring the trap. Greenspan and the Federal Reserve began relentlessly raising interest rates at every Fed meeting, always citing the threat of inflation, and sat back to reap windfall profits. What they didn't count on, was Joe Sixpack simply walking away from his $300,000 mortgage, on a home now worth $200,000!
A recent story on the news, said that 60% of all the people with sub-prime mortgages, had credit good enough to qualify for a conventional mortgage. My daughter is in real estate, and she told me everyone was being steered into ARMs, and she could not get people into fixed mortgages. The bankers were making much bigger fees and profits from sub prime and other funny mortgages. I really feel this was a get rich quick scheme, with plenty of blame to go around, that just fell apart, when people decided to default, rather than pay up, or couldn't pay up.
The current bailout scheme, mostly saves the banks and mortgage companies, with some rather large crumbs thrown in for the auto companies. But it isn't going to help the economy. People with no jobs, living in their cars and tents, don't buy many $30,000 SUVs and electric cars, or plasma TVs. End of rant. We now return to normal programming.
I really dont have a impact on the current budget. So the gas got expensive. Big deal We still drive to work as long as payroll exceeds the cost of gas. For example I drive 30 miles to work 4 hours at minimum wage as a crew leader in a part time job. That 4 hours net me... 20+ Dollars? Gas at 4.00 gallon at 30 miles to gallon = 8 bucks round trip. Profit 12 dollars. And no lunches, a large breakfast of eggs, meat and cheese (About 3 dollars worth) still a profit.
The company I worked for actually told me to stop working at that account because THEY cannot make a profit on 3 workers working 4 hours. They need to have enough work for at least 10 people for a 4 hour day. HOW can you provide 10 people with 4 hours of work if the business only had half that work? They are not going to pay you to stand around for 2 hours. No sir.
That gas can probably go to 7 dollars a gallon at 14 dollars a round trip per day to work (30 miles away) for 20 dollars net pay and anything higher I will have to either work 8 hours at that location OR find a location 5 miles away for 14 dollars of gas PER WEEK.
The second stragety is to find a employer engaged in a business VITAL to the local area. The Hospital is one option. No matter what happens to the economy there will always be a Hospital. If THEY close... well... things are really bad now arent they?
Funeral homes is another depression proof workplace. Not exactly a job to die for LOL. But someone is necessary to dispose of those who have passed on. South and West of me are plants in Defense work that are producting items for the War effort. They probably can provide a job if I can move near them. Because the housing market is kaput that is not a option. We are outright on the home free and clear so... we probably can do it if necessary.
You DONT want to be working in a retail mall right now. All those Shoes sit on the shelf for a long time until one customer needs help with choosing a shoe. Someone will always need a shoe and probably will go to walmart or yard sales to get a cheaper shoe before they show up in your expensive gold plated retail store.
If that gas goes to 20 dollars a gallon due to a war in the Middle East before we get domestic oil pumping adequately.. well.. I guess no one goes to work or charges the gas until the credit card debt breaks the system.
In my house, Im cash only. I actually have a very large credit card with a zero balance being closed by the card holder "Due to lack of activity" Big deal. I have other cards I can get to or even secure my own credit lines with cold hard cash.
Now, that cash is held by a nice bank. Should this nice bank vanish and be taken over by the Government... well... no worries except changing routing numbers and new account numbers with all the billing. What a pain.
Should the US Banking system fail totally? Well, we all would be in trouble now wont we?
I'm OK with things so far. We budget everything, so my hobby spending is OK too.
I'm 65 and retired.
We have felt no need to keep up with the Jones's during our years together so we have not spent money for things that we didn't need.
Our house is paid for, our truck (which we no longer drive due to high gas) is paid for, our Honda Hybrid - which gets upwards of 54 mpg on the highway - is paid for. (The 320 mile trip to Timonium and back cost me $17.00 in gas.)
Zero balance on our credit cards. We do use them for grocery shopping and hobby shopping.
I do have some stocks in two Electric companies and some stock that I received when John Hancock did a change in how they did business sometime back, and they are in the tank right now, but I am sticking it out. They don't affect our income.
I will be in trouble if the government goes under because I get military retirement and social security.
One more thing about the so called housing crises: They ain't making land any more, so the prices will go back up. Maybe not as fast as some would like though.
Elmer.
The above is my opinion, from an active and experienced Model Railroader in N scale and HO since 1961.
(Modeling Freelance, Eastern US, HO scale, in 1962, with NCE DCC for locomotive control and a stand alone LocoNet for block detection and signals.) http://waynes-trains.com/ at home, and N scale at the Club.
Lou asked: "I guess the question I pose is "Are you OK with the economy, or has it impacted your hobby $?"
First a big THANKS to people who so far have kept politics out of this thread.
Answering the second part of the question: No, my model railroad budget remains the same.
The first part. Here things are still OK. There are houses being built on our road. Another example, my friend, the Tow Boat captain, says he's seen no impact in the number of barges he shoves through the waterways.
I keep things in perspective and look at the long term. The country has always had the budniess cycle. In that regard, we've done better in the past approximately 25 years than in prior periods in our history. There were only 2 short recessions from the mid 1980's thru the middle of 2008. I recall the period close to 1980 when we had double digit unemployemnt, double digit inflation, and double digit interest rates. Things, overall, are not bad considering that.
In good times, all of us should have been saving for the "rainy day".
Keep your chin up. Ride it out. Enjoy your model railroads. It's great to be able to tune out the world with the World's Greatest Hobby"
Have Fun
Now some humor:
____________________________________________________________-
NEW STOCK MARKET TERMS
CEO --Chief Embezzlement Officer.
CFO-- Corporate Fraud Officer.
BULL MARKET -- A random market movement causing an investor to
Mistake himself for a financial genius.
BEAR MARKET -- A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no sex.
VALUE INVESTING -- The art of buying low and selling lower.
P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing.
BROKER -- What my broker has made me.
STANDARD & POOR -- Your life in a nutshell.
STOCK ANALYST -- Idiot who just downgraded your stock.
STOCK SPLIT -- When your ex-wife and her lawyer split your assets equally between themselves.
FINANCIAL PLANNER -- A guy whose phone has been disconnected.
MARKET CORRECTION -- The day after you buy stocks.
CASH FLOW-- The movement your money makes as it disappears down the toilet.
YAHOO -- What you yell after selling it to some poor sucker for $240 per share.
WINDOWS -- What you jump out of when you're the sucker who bought Yahoo @ $240 per share.
INSTITUTIONAL INVESTOR -- Past year investor who's now locked up in a nuthouse.
PROFIT -- An archaic word no longer in use
GARRY
HEARTLAND DIVISION, CB&Q RR
EVERYWHERE LOST; WE HUSTLE OUR CABOOSE FOR YOU
As others have stated, I'm retired, house is paid for, no credit card debt, etc., etc. I just bought a new car at the end of June. It shouldl be paid off in about 2 years. I have all the engines and cars I need but I still buy occsionally. My 401(k) took a hit but not as bad as some. So, yeah, I'm in good shape right now and will spend what I want on my trains.
On a positive note, inflation in the third quarter was up so my SS check should increase somewhat after the first of the year.
Life is simple - eat, drink, play with trains!
Go Big Red!
PA&ERR "If you think you are doing something stupid, you're probably right!"
Raised on the Erie Lackawanna Mainline- Supt. of the Black River Transfer & Terminal R.R.
As one of the fully retired, with an adequate cash flow from our rich Uncle (military retirement plus SS) and some odd gravy from interest-bearing accounts and an annuity, I can spend whatever I wish on hobby supplies. The only thing is, I don't really need much.
I DO use credit cards - one for general expenses and one for, "I want that, NOW," purchases. Both get paid off at the end of each cycle. I haven't paid credit card interest in years.
I DO have a mortgage - 30 year fixed, at a reasonable rate that is well within my budget. It's amazing what you can do if you have a nice big cash downpayment. (Not to mention that the house was briefly worth twice what we bought it for in 2003, and is still worth 160% of purchase price according to the county assessor.)
The two Toyotas are paid for, thank you. With regular maintenance and a little luck, they will probably outlive me.
As for my credit score, if it was any higher it would require oxygen, or a pressurized cabin.
All of which was a result of living within my income, not trying to impress the neighbors and waiting until the top of the line latest and greatest became a clearance sale bargain.
The best part? I can enjoy my trains, my other interests and my life without losing any sleep over how it's going to get paid for. What, me worry?
Chuck (modeling Central Japan in September, 1964)
I'm with most of you on here. House fully paid for, car bought for cash, one credit card (paid off fully monthly), and no other debt. Buy most of my model rairoad stuff on Ebay - mainly non-runners, but have the equipment to repair them, so sitting pretty, relatively. Be careful now, and you'll reap the benefit later.
Dennis
Last night I saw gas at $2.39 a gallon here in Oklahoma. I think that individuals are making hay out of the economy the same way that they do every four years. There is a certain outcome that individuals in the media favor and the free market is not it. It is far easier to make new out of government actions than to actually report what is happening in the world.
The housing mortgage resale market is a mess right now and given time it will right itself unless the government gets more into the mess it created by forcing banks to make subprime loans.
Markets go up and they go down. When we try to prevent the down side we can only delay it and when it does finally occur it will be far worse than it we had let the economy go through its natural up and down cycles. The best thing we can do is live beneath our means and save money in the good times and be more conservtive in our spending during the no so good times. This current market is impacting wall street and the media right now. Most of main street is scared but generally not directly impacted. If we panic and pull back our spending and sell our stocks then the real impact will be felt.
The American people have a great work ethic and remain the most productive workers in the world. Things will be challenging in the months ahead but if we focus on doing our respective jobs to the best of our abilty the market challenges will dissapait. No one can solve this problem through govenment internvetion, bailout, private leverage, ect. We can only solve it by doing our jobs to the best of our ability, living within our means, saving money, and observing our our circumstances instead of listening to the media or politicians regardless of party.
I have cut back my spending some but it has more to do with amasing far more equipment than I need and not havng anywhere to run it. I have a few things on order and I look forward to their delivery later this year. I am optomistic that we the United States will be a stronger nation more aware of its values when this current situation ebbs. The corporate largess of both political parties have lost touch with the traditional values of America. When we return to living within our means and stopping the utter consumerism above all else, we will be a healthier and more prosporus nation. After all, the government that can give you everthing you want will take everything that you have. If we take time and fully consider the consequences of our actions the times we are expiencing today will be but a footnote in the history of this nation. If we are reckless and paniced, we could make decisions that will change this nation in ways we cannot fully comprehend.
I just this afternoon emailed my Senator--I reside in the worst gerrymandered congressional district in the United States and since I ain't a "minority" nor a democrat it ain't gonna do me no good to email my representative--staking my claim for $75,000.00 of "bailout" money--I know! they call it "Economic Stabilization Funds" but labeling horse-you-know-what meadow muffins don't change the smell any. In return I promised to never pay it back which will be the eventual outcome of all this; I did, however, promise that I would not accept any "Golden Parachutes" and would not take any $400,000.00 retreats at a So. Cal resort. I pointed out that my financial distress was, like those distressed banks, caused by gross mismanagement but I was able to do it with far less resources than they were.
When I receive my check and I am shed of a house payment and a car payment and credit card bills and with the IRS off my back for past due taxes I should have close to $10,000.00 annually for my train budget. I think we are living in great economic times!!!
From the far, far reaches of the wild, wild west I am: rtpoteet
germanium wrote: I'm with most of you on here. House fully paid for, car bought for cash, one credit card (paid off fully monthly), and no other debt. Buy most of my model rairoad stuff on Ebay - mainly non-runners, but have the equipment to repair them, so sitting pretty, relatively. Be careful now, and you'll reap the benefit later.Dennis
And you have Socialized Medicine to boot. Aren't you lucky! I am fearful of what this country is going to look like on November the 5th instant and I suspect that we, too, are going to have the Albatross of Socialized Medicine draped around our neck in the not-too-distant future! And all this is going to be done with tax cuts for 95% of our population--and Uncle will give us a train budget to boot! Aren't we lucky?
If you will all pardon an observation... It seems like most of you folks that aren't being affected are retired and living off of work pensions and wise investments from back when those things were available. (and maybe SS to boot.) I fear to think how the 20-30 year olds on this forum would answer this same question 40 years from now since they're going to grow old with no company sponsored pensions and probably no SS.
(Just an observation...)