I see folks downsizing; homes are no longer the huge castles of the past twenty years but rather smaller and more sensible homes.
Now they aren’t asking these questions because they are suddenly interested in history, they are trying to learn from the past to determine their best course for the future.
I see folks downsizing in every aspect of life. Homes are no longer the huge castles of the past twenty years but rather smaller and more sensible homes. People have learned the larger the home the more it cost to maintain it. People are learning to cut corners anyway they can, they are becoming penny wise.
I see more people shopping at thrift shops, dollar stores and discount grocery stores that offer savings through coupons, buy one get one free and other sale incentives. The upper end stores are having to adapt to this new way of life that’s facing the consumer. There will be many retailers who will not make it, regardless of the incentives. I think the first quarter of next year will be an interesting time to watch, I predict there will be some big names hitting the “closed” world.
We are seeing more and more filings for bankruptcy. In 2006 there were approximately 735,000 filings compared to 1.7 million this year alone. These are decisions people are making due to unemployment and lack of income. More and more home owners are simply walking away from under water mortgages, they simply are calling it a strategic financial decision, and it is.
Our grandparents made it through some rough times, and in the long run so will we. It won’t be easy, but think of the lessons we will be able to pass on to future generations.