Thanksgiving is a day to share a meal with family and friends and reflect on all the things we have to be thankful for. With the economy hitting a brick wall, that may seem a tall order this year. But at least for today, put aside worries about your plummeting portfolio, sinking home values and increasing job insecurity. Even when it comes recession, there are reasons to be thankful. Here are seven things I'm happy about that are occurring now due to the economic slowdown:
Stocks are cheap. We may not have seen the bottom yet (hopefully we have), but this could be the stock buying opportunity you've been waiting for. The trailing price-earnings ratio of stocks in the Standard & Poor's 500 is 11. Don't throw all your investable assets in the market all at once, but start nibbling here and there on strong companies that have been slammed by the economy -- like General Electric (NYSE: GE), Research In Motion (NASDAQ: RIMM), Intuitive Surgical, or just a broad index fund -- and hold on for the ride. (For more ideas, see our Stocks To Buy category.)
Gas prices are falling. Last summer, gas prices nationally averaged over $4 a gallon. My mother-in-law was panicked she couldn't afford to stay in her house this winter due to heating oil costs. Now gas is at $1.87 on average nationally and heating oil costs are about 20% lower than last year. Fact is, the price of crude is tied to expectations for economic growth. In recession, demand for crude falls globally and gas and heating oil get cheaper. Then, in a nice virtuous cycle, lower energy prices put more dollars in consumers' pockets and help fuel a bit more spending.
Barack Obama was elected President. Even supporters of Senator McCain can give thanks that we have a fresh face in the White House who is bringing in lots of new talent and bold ideas to tackle our economic woes. Pollsters may disagree, but the fact the market crashed three weeks before the election probably helped seal Obama's victory. Barack is inheriting a pile of problems to deal with, but I think he is up for the challenge.
Homes are getting more affordable. As a homeowner myself, I feel the pinch of declining real estate prices. But I have hopes of getting out of my 'starter' apartment one day and I stand a better chance of that if prices come down. In high-demand markets, I think real estate prices should stabilize soon and if they get a little cheaper in the meantime, it will only make homes more attainable for all those Americans still hoping for a piece of the dream on terms they can afford.
Frugal living is better for you. Vices are expensive. Drinking and smoking are budget busters. The main reason restaurant food tastes better than your own home cooking is probably because they use more butter, salt, oil, cream and cheese than you never would at home. So stay home, eat right, quit smoking and drinking and save money. Words to live by (or at least consider) in a recession.
Crass consumerism is out of fashion. Now that Thanksgiving is here, the full furor of holiday-related spending is about to be unleashed. But this year, bargains are in and brand names are out. Thousands of families are planning on scaling back on the Christmas bonanza. That may not be good for retailers this year, but if it keeps more people out of debt and enables them to better weather the economic downturn in the months to come, then I'm thankful for that.
We appreciate our jobs (or our unemployment benefits) more. Have you noticed that the usual water cooler complaining has cooled off this year? Suddenly it doesn't sound so smart to complain about your job or your boss. Such kvetching can be draining. It's good for business and morale that people are more committed to doing a good job. Even if they don't love their job, they recognize that having benefits is a good thing. If you were unfortunate enough to lose your job, you can find reason to be thankful, too. Unemployment benefits for about 1.2 million Americans were extended last week.
Homes are getting more affordable. As a homeowner myself, I feel the pinch of declining real estate prices. But I have hopes of getting out of my 'starter' apartment one day and I stand a better chance of that if prices come down. In high-demand markets, I think real estate prices should stabilize soon and if they get a little cheaper in the meantime, it will only make homes more attainable for all those Americans still hoping for a piece of the dream on terms they can afford.
Frugal living is better for you. Vices are expensive. Drinking and smoking are budget busters. The main reason restaurant food tastes better than your own home cooking is probably because they use more butter, salt, oil, cream and cheese than you never would at home. So stay home, eat right, quit smoking and drinking and save money. Words to live by (or at least consider) in a recession.
Crass consumerism is out of fashion. Now that Thanksgiving is here, the full furor of holiday-related spending is about to be unleashed. But this year, bargains are in and brand names are out. Thousands of families are planning on scaling back on the Christmas bonanza. That may not be good for retailers this year, but if it keeps more people out of debt and enables them to better weather the economic downturn in the months to come, then I'm thankful for that.
We appreciate our jobs (or our unemployment benefits) more. Have you noticed that the usual water cooler complaining has cooled off this year? Suddenly it doesn't sound so smart to complain about your job or your boss. Such kvetching can be draining. It's good for business and morale that people are more committed to doing a good job. Even if they don't love their job, they recognize that having benefits is a good thing. If you were unfortunate enough to lose your job, you can find reason to be thankful, too. Unemployment benefits for about 1.2 million Americans were extended last week.
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Reader Comments (Page 1 of 3)
11-27-2008 @ 1:09AM
Tara said...
I guess the author thinks BO is going to save us w/hope & change, lol. BO has brought the Clintonistas back.
11-27-2008 @ 2:59PM
john said...
There is no way that I can look at the election of a socialist as something to be thankful for!
11-27-2008 @ 2:52AM
Tim said...
John and Tara, you just don't "Get It"!
11-27-2008 @ 5:36AM
tiffany said...
Seriously, after what happened with the bush administration, can we really take another term of this? Thank God Obama won!!!
11-27-2008 @ 6:10AM
Gilda said...
I am thankful this author is not in government. He really thinks the Big O is going to save us. I hope he's right but I am not holding my breathe.
11-27-2008 @ 6:22AM
tim walter said...
Rome has fallen, that is if Cleveland, Manhattan and Detroit are modern versions. The excesses of the last decade have made me ill as the materialistic, credit card lifestyle so many of us led have crashed. And this is good. We as a nation could not sustain the overspending, overconsumption and unrealistic lives created by bogus 2nd mortgages and plastic cards.
The bills are due and someone has to do the dirty work. Workers rarely are worth their pay, though they believe they are underpaid. Do the math folks, what do you bring into your company and what is the total cost of you being there including all benefits? Businesses HAVE to make a profit or they eventually fail. That eventually is here.
With the advent of the container ship, computer and containment of childhood diseases, we have global competition as never before. The thought of an unskilled worker making $30 an hour to put lug nuts on a wheel is insane. If you haven't gone to college, earned a trade license or spent years developing job skills, you are unskilled and easily replaced.
I am thankful for this great land, the opportunites here and a chance to succeed. No one owes me anything, not the federal government, not the state, not my neighbor. Please Obama, don't increase taxes, it will further damage the economy and create more federal parasites already feasting of our reduced paychecks.
11-27-2008 @ 8:15AM
Karch said...
We have alot to be thankful for, the gas prices are going down, a new President with new ideas that at least is saying all the right things, and we have our health.
11-27-2008 @ 8:27AM
Suzanne Foss said...
What I am most thankful for, inspite of this economy and all the terrorism, is the greatest gift God has ever given to mankind......The Holy Spirit. Being filled with the Holy Spirit and experiencing His love and joy gives me and other Christians true peace in our minds and in our hearts. I don't put my trust in man or in Barack Obama to fix or take care of anything. I don't believe he can; but having John McCain for president would certainly have been a good start. I only trust the Lord. I pray for people and bad situations in the world all the time, but only God can bring us peace and prosperity. The only thing our government will ever do for us is to rob our wallets.
11-27-2008 @ 8:50AM
jen said...
Really?? He "is bringing in lots of new talent"? Who, exactly? They are all retreads from the Clinton - or worse, Carter - administration. There is NOTHING NEW except $7 trillion in bailouts with BHO planning another trillion on day 1. Please. This is pitiful.
11-27-2008 @ 9:40AM
addabeach said...
Bottomline is that whether you voted for the incoming administration or not, let's hope they can resolve this financial issue. I've seen neighbors lose homes, have cars repoed, and know others who are literally on the brink of losing everything. Unfortunately, now we have the holidays to add to these families' problems. I think most families would be better off holding on to their money and not incurring additional credit card debt. It isn't a great price if you don't "need" it. The truth is that most of us have all the crap we need. Few of us actually really need more of anything. It's not need, it's want. Food, gas, toilet paper, imagine living a year just buying those items. CASH! Piles of cold hard cash is the best way to weather the current economic situation. I discovered one of the best books you'll ever find about finance, "How to Become Filthy Rich on Your Current Income" at www.how-to-become-rich.com. If people read books like this one we would not have the current situation we do.
11-27-2008 @ 10:12AM
tom said...
What John M. have you been talking with ?B.O. is in over his head,no new faces...change?This is a joke that his supporters will find out is on them and the rest of us in his first 100 days.I am greatful that we are safe,no new attacks on our country...thanks to GWB....no thanks to the bias media and the Dems!PS:please provide the valid polling done to prove the JM voter conclusion....
11-27-2008 @ 11:01AM
Kimberly said...
I am thankful I am SAVED by his grace and love. I am happy as can be and I know I will be takin care of forever and ever. God bless you all!!!
11-27-2008 @ 11:07AM
Jose said...
I believe Mr. Obama has it right. If the middle class has been the government's sacrifice, then it's time for the wealthy to share the same. Mr. Obama may not know all the answers, but with the help of God all things are possible. Let's stop complaining, and better start praying to God that he may lead this new government administration to brighter horizons that will benefit all Americans, thus guiding us as individuals to be wise in our spending, saving, and to be less greedy.
11-27-2008 @ 11:10AM
Herb said...
Amey Stone,
There is something about the fourth reason that I don't get. Why, as homeowner yourself, do you want to get out of your 'starter' apartment?
11-27-2008 @ 11:45AM
ED Thompson said...
THANK GOD , I have a warm house,
really 2 houses, plenty of food, a fat
belly, lol , and a retirement check coming in every month.
THANKYOU GOD, FOR YOUR BLESSINGS
11-27-2008 @ 11:49AM
Dan said...
Its always a day to be thankfull I am in small busniess and I can tell you its very lonely out here.
Small Buz needs money To many of us will fall this year unles the president stops looking at the big guys and starts looking at who really built theis nation.
11-27-2008 @ 1:09PM
weser said...
#9 JEN
why do you bother writing on this site?
you sound so depressed, troubbled and demented. Go have a nice meal today
and shut up for a while, you need help
11-27-2008 @ 1:11PM
user said...
# 15 Ed
I am happy for you , but your FAT belly got to go , or your fat retirement check will stop coming soon. Get in shape and dont rubb it in to others how well you are doing including your fat.
Gobble Gobble
11-27-2008 @ 1:52PM
Dave said...
Thank God bush is about to go back to Texas. He did not keep us safe he was president during the attacks and Osama is still a free man after 8 years . And now the economy in the dumps because of him and his administration. This Thanksgiving I am thankful his rein is over and people who led our country to a surplus are being appointed by our new president. I pray they act fast so the suffering of American children living on the street ends.
11-27-2008 @ 3:17PM
TheC2U said...
11-27-2008 @ 1:09AM
Tara said...
I guess the author thinks BO is going to save us w/hope & change, lol. BO has brought the Clintonistas back.>>>>>>>>>> We can be thankful it is Clintonistas and not Bushits if McCain got elected.