[Crosspost] AskReddit discussing recession indicators they've noticed lately in their everyday life
Posted by MrD3a7h@reddit | PrepperIntel | View on Reddit | 221 comments
Traditional-Rub-7873@reddit
My Costco re-organized the store- they totally nixed an entire aisle (that ran the length of the store) and then spread out other sections to fill the space.
DepressingFolkMusic@reddit
Trader Joe’s near me did this too and they’re continuing to do it. They made the space between the isles bigger, the isles were continuous before but now they have breaks/gaps in them (and it is messing up the flow of traffic), and they even started creating displays on the top shelf for some products. They’ve gotten very creative with how they are making less things take up the space. It feels natural but I’ve noticed it.
GoodBoundaries-Haver@reddit
Costcos do this regularly. People spend more when they need to wander around for a bit to find what they're looking for.
fragrant-final-973@reddit
Oh look, LEGO!
Traditional-Rub-7873@reddit
Yeah I have seen it re-organize many times over the years, but actually reducing the number of aisles is a new one.
GoodBoundaries-Haver@reddit
Ooh I see what you mean, I misunderstood at first. That is interesting
V2BM@reddit
My Sam’s Club did too. I can’t tell if there are fewer products. It seems the same but it’s so big that it’s hard to tell.
PrairieFire_withwind@reddit
Fascinating. My vlosest cost has been squeezing in way more aisles. Like two new in the cooler area last time i went and an extra one up front.
Mcspankypants801@reddit
Gym use seems to be down significantly. I used to have to search for open machines. It’s been a ghost town lately. I can only assume people are cutting it out of the budget.
yaddayadda1000@reddit
You’re right . January is strangely quieter every year lol
kingofhearts778@reddit
Red hats to the back of the breadline please.
karl4319@reddit
Out of the bread line. They wanted this, they can survive on their own.
emseefely@reddit
Remind them that they don’t want socialism
fragrant-final-973@reddit
Point out the hypocrisy never works when they're getting corporate welfare. They just don't care.
yaddayadda1000@reddit
“Now’s not the time to talk about this how could you have some humanity” 🤣
fragrant-final-973@reddit
Says the people who made my existence political.
Atheist_Bale_Insta@reddit
Let em grow their own bread, while we’re at it.
fragrant-final-973@reddit
Just wait against that wall over there.
Ok-Web-2657@reddit
I've stopped eating granola bars because I can't afford an emergency dental appointment.
EggWaff@reddit
I work in dentistry and have never seen this many people on bare-minimum dental plans, or just straight up cancelling their appointments because they can’t afford the plan or the routine cleaning. Our schedule looks worse and worse… and it’s across the many practices whose schedules I have access to.
Electronic_Syrup7592@reddit
Man, my dentist is booking appointments 9 months to a year out because they can’t find any hygienists. It’s almost impossible to get an appointment.
EggWaff@reddit
Oh we finally got a new hygienist after almost a year! Lots of hygienists aren’t taking full time positions anymore because they make ridiculous money temping at different offices… which leaves offices so desperate they’ll pay more than the appointment is worth for a temp hygienist. And then the patients cancel or the temp just doesn’t show up and we’re screwed.
It’s getting real crazy out here.
Gygax_the_Goat@reddit
I stopped eating Müsli bars because I cant afford müsli bars.
No_Possible_7108@reddit
I've stopped having teeth because I can't afford a dental appointment lmao 😓
Shoddy_Egg4976@reddit
People around me talking about hiring freezes at their different companies, so maybe we’re at the start? Haven’t really observed decreases in consumer spending though.
warm_kitchenette@reddit
Many people are financing spending with increased debt.
https://www.newyorkfed.org/microeconomics/hhdc.html
https://fred.stlouisfed.org/series/CCLACBW027SBOG
fragrant-final-973@reddit
I wonder how many just don't think it will matter long enough to pay it off.
Shoddy_Egg4976@reddit
Ty for sharing!!!
Usually_Ideal@reddit
Think it really depends on where you are on the income ladder. I think many middle and working class folks have pulled back their discretionary spending.
Those who are on the upper end of the ladder have more breathing room in their budgets, have emergency funds, 401Ks, etc. This group probably isn’t pulling back discretionary spending as much yet. With rising gas prices though, we might start to see new car sales slip, for example.
Look up the K shaped economy. Basically we all aren’t living the same reality.
Strict_Poet_5814@reddit
I have been repeating this over and over to everyone I meet that is not rich and complaining about the economy. This is why you cant trust reddits opinion on all perspectives, alot more poor people than millionaire class on here. Also nobody see's the reports of 50% spending done by the top % or whatever. 50% ill say it again 50%. Mcdonalds and Chipotle CEO's both said same thing two tier economy, they dont see impacts from the upper tier. So they market to them, trying a Big Arc in a recession anyone? Stock Market all time highs. Defense contractora gonna need new cars and toys. Make a product for them.
Im starting a business and thats the whole idea, market to the consumers who are doing 50 percent of the spending.
Its simple, Here is the thought process between the two:
Average person: "Oh man I wish I could buy that but im on a fixed income and my purchasing power keeps decreasing no matter what I do. "
Wealthy person( this could be generational wealth, one hit wonders, single real estate deals, luck, 90s money, 2010's money, precious metal hoarders bitcoin holders,etc, theres like a million ways to be a millionaire):
"I want that" register rings
Sure some wealthy people are cheapskates( for no reason at all) but from the personal stories, that 2% has wasted and lost more money than 50% will ever have. Doomsday bunkers, Yachts, and Personal jets.
Anyone remember the expensive iPhone apps for hundreds of dollars that was just a bling Screensaver. Somebody bought those.
ManufacturerOk7236@reddit
Have to agree with K shaped economy. Discretionary spending for spas, massage therapy, & a few other services remain strong.
Shoddy_Egg4976@reddit
Agreed that income class needs to be taken into consideration
HeavySigh14@reddit
60% of my team has been laid off/ forced to retire. We’re in a hiring freeze, we’ve been given 3x the usual workload, AND THE CHERRY ON TOP IS THAT THIS IS OUR 7th STRAIGHT QUARTER OF RECORD-BREAKING PROFITS
Goatmannequin@reddit
Of course you get record-breaking profits if the money is inflating away to nothing.
Girafferage@reddit
Appropriate username... And one that feels universal right now.
Shoddy_Egg4976@reddit
The greed is insane. Sorry to hear that this is all piling up on you guys.
misterespresso@reddit
Thought in my head, where’s all this consumer spending going. If it’s food, clothes, utilities and shelter… wonder if all that’s accounted for.
For example, during the week the restaurant I work at has been dying out (as we go into summer that’s a bad sign) but we randomly have stupid busy bursts that are beyond our normal capacity.
I wonder how much of that spending is fueled by debt as well.
No_Possible_7108@reddit
Maybe people treating themselves after payday or a company event?
misterespresso@reddit
I’ve done every Friday night for 3-4 years. We were near our busiest day of the year in sales (we are on a lake that does fireworks in July) after a dead week. It was absolute insanity, caught everyone off guard. Though it was a full moon.
working-mama-@reddit
I worked in food service (waited tables) 20 years ago. It was occasionally like that too.
misterespresso@reddit
I need to emphasize how slow it’s been comparatively during the week. It’s abnormally low. Random busy times always happen, but the restaurant is barely getting customers during the week, which has not been the case since Covid. Until this spring, business has been steadily increasing.
JediMineTrix@reddit
My company (that you absolutely would recognize if I stated who it was) has been in a hiring freeze for all white collar jobs for 9 months, and cut the number of blue collar jobs by about 20%.
McRibs2024@reddit
We just had a reduction in staff to account for the healthcare spike. Without giving dox details it’s roughly 20 full time positions across the district.
There are some retirements as well that I have a my suspicions about too.
FormerNeighborhood80@reddit
We just came home from grocery shopping. $243 and it barely covered the bottom of the cart.
Gonna_do_this_again@reddit
Going outside costs a hundred dollars
8Deer-JaguarClaw@reddit
"Went outside once. Graphics were shit." - Neckbeard Incel in his mom's basement.
StrangeCurrency8154@reddit
Woulda been better without the incel part. Those dudes aren’t gonna get better without a little compassion.
fragrant-final-973@reddit
What other violent extremists do you say this about?
StrangeCurrency8154@reddit
I think we are thinking of two different kinds of incels. I’m referring to the men who aren’t violent or in the cult.
fragrant-final-973@reddit
Nope, there's only 1 kind of incel and it's a violent, misogynistic cult.
angrytetchy@reddit
No they won't. They' can do better, they're just choosing not to. The people who do escape the echo chambers and incel pipelines aren't having a change of heart from compassion (or are a minority) it's because they experience real world consequences or are forced to alter their thinking.
They're in a cult and until they willingly crawl themselves out of that pit and do some serious work on themselves and righting their wrongs, I'm not going to offer them the time of day let alone what compassion I can spare. They are willingly choosing this evil and that's where my personal line is.
If you want to offer them compassion, be my guest, but don't be surprised when they take advantage of it and keep doing what they're doing. I'm in the "fuck them" crowd. I'm aware of the brainwashing mentality - it's the same thing a lot of Christian door knockers employ to keep their congregation feeling like they're in the "us" crowd when doors get slammed in their faces - and that it can push them further away. But here's the thing: they know. They know that the rest of us live our lives with basic compassion for other humans. They know that there's a different side of things, but they choose to stay incels.
StrangeCurrency8154@reddit
Username checks out.
angrytetchy@reddit
fragrant-final-973@reddit
$10 says the guy above has feelings about the bear discussion and "not all men"
StrangeCurrency8154@reddit
Why are you so angry?
JediMineTrix@reddit
Outside is great, but a free fast-travel system would make it much better
Girafferage@reddit
I feel this in my bones.
Unique-Sock3366@reddit
I just spent $136 on sandwich meats, bread, cheese, and soft drinks. On sale 😬
Open-Impact-1607@reddit
Bullshit
Unique-Sock3366@reddit
Deli meats were $10/pound. Cheese was $5/pack. Bread was $5. Soft drinks were $13/12 pack.
Every item I purchased was “on sale.”
No bullshit 🤷🏼♀️
hobeezus@reddit
Bake your own bread smh
Unique-Sock3366@reddit
We should. We baked our own during the pandemic.
And the last three loaves I’ve bought have gone bad well before the printed best by dates.
tiffanytrashcan@reddit
Brilliant. Getting hung up on the least impactful and cheapest item.
baardvark@reddit
Deli meat is a huge ripoff. Of course it should be cheaper, but since it’s not: costco rotisserie chicken, spiral sliced ham, and crockpot shredded top round roast are your friend.
Unique-Sock3366@reddit
Great tip and absolutely agreed!
I’m having surgery tomorrow and wanted some time saving options. There are certainly much more affordable alternatives.
beforethewind@reddit
Good luck with the procedure!
Unique-Sock3366@reddit
Thank you very much!
No_Possible_7108@reddit
I wish there was a Costco where I live ☹️
Open-Impact-1607@reddit
how much of each did you buy?
fragrant-final-973@reddit
About $3.50
fragrant-final-973@reddit
1mo old divisive bot being divisive. A tale as old as Russia.
Open-Impact-1607@reddit
yep, def a bot
tiffanytrashcan@reddit
New strategy? They just admit it now? 🤣 💀
Excellent-Source-348@reddit
Soda is so expensive now; $12 per pack.
Might want to try a soda stream, I don't even use the syrups anymore, I guess I just liked the fizz.
Unique-Sock3366@reddit
That’s a great tip, thanks! I definitely have a weakness for Diet Coke.
FormerNeighborhood80@reddit
That’s awful!
ChewieBearStare@reddit
Curious how much time that covered. Is it one week's worth of groceries? And for how many people?
FormerNeighborhood80@reddit
One week. 2 adults.
ChewieBearStare@reddit
That seems insane. Hawaii/NYC/California?
FormerNeighborhood80@reddit
Right in the middle of the country
ronin_cse@reddit
Also in the middle of the country, near Milwaukee in our case, and we just spent about this as well for just two people.
So definitely not crazy.
Girafferage@reddit
Kansas eh. Should be cheaper. I'm sorry, Homie.
angrytetchy@reddit
No it's somewhere around $40-50 for 4 items here in Hawaii.
Express_Emu1911@reddit
That's crazy. I spend $240 to feed two adults, 3 dogs, 5 cats, 10 chickens, and a rabbit for a whole month.
mystery_biscotti@reddit
I thought I was doing bad at $71 for the things to fill in our gaps, but not so much now.
We're living off the pantry right now--on top of everything else we have a maple dropping branches on our neighbors' properties here in not-so-scenic suburbia.
7nightstilldawn@reddit
How is this a recession indicator and not an inflation indicator? Do not worry, it looks like no one on this thread knows the difference.
kingofhearts778@reddit
You want recession indicator? School employees are getting pink slipped in greater numbers than I’ve ever seen where we live. It’s made headlines. If you want insider info on the real recession indicator, head over to the r/sexworker side of Reddit.
hagne@reddit
I would say recessions and inflation have historically been linked. When wages don’t keep up with inflation, you get a recession.
MoonAndStarsTarot@reddit
I bought some pretzels, pop, milk, yogurt, frozen veggies, chicken breast, and a nice deli sandwich ($6) on Thursday and came out $93 lighter. Everything fit into a single paper bag. I wouldn't normally buy the sandwich but I was going to a pro-d site on Friday and my school district never cares about allergies so I always bring my own food. Normally I bring leftovers for work lunches but I didn't have microwave access at the site we were at so deli sandwich was easier.
7nightstilldawn@reddit
No one knows the difference between recession and inflation. Not surprised.
fragrant-final-973@reddit
*Trumpflation
MOF1fan@reddit
Why would Biden do that🤔
fragrant-final-973@reddit
Thanks Obama.
warm_kitchenette@reddit
This is likely to be stagflation, which combines them. That has not been seen since the 1970s in the U.S.
One can find recent evidence for both recession and depression in public data as well as anecdotal experience.
hagne@reddit
The top indicators are about layoffs/ staff reduction. That says “recession” more than “inflation.”
davidm2232@reddit
They often go hand in hand but are totally separate things
MrD3a7h@reddit (OP)
It's hard for hurt people to think clearly or educate themselves on the issue.
We're all hurting. I can't blame them.
PNWcog@reddit
The people with the giant trucks drive even more aggressively than usual.
davidm2232@reddit
If I'm paying $5.89/gallon, I want to hear every ounce
fragrant-final-973@reddit
vs the rest of us who want to use every ounce.
No_Possible_7108@reddit
$5.89/gallon, 4mpg lol
davidm2232@reddit
I get 24 mpg driving aggressive and 28 if I behave
No_Possible_7108@reddit
In a Big N Tall truck? Much better than I thought!
davidm2232@reddit
Small truck. 4runner it's got a vw diesel so it does much better than stock
AirborneGeek@reddit
Yells in cyclist
deiprep@reddit
They won’t be for long if the gas prices keep going up. Expect a lot less of them driving around in the next few months.
working-mama-@reddit
I guess there is a silver lining to the high gas prices…
Big_Fortune_4574@reddit
Boy do they
Big-Preference-2331@reddit
Nothing really. People are still building homes in my area. Companies are still hiring and people haven't been having fire sales on Marketplace or Offerup.
Electronic_Syrup7592@reddit
It’s basically the same where I am (Indiana). People are complaining about gas, but other than that, things are basically the same as before.
Girafferage@reddit
Where the heck do you live?
V2BM@reddit
I live in Appalachia and enough people are on social security (both kinds) and benefits that nothing has changed. Online shopping has increased significantly every year and it hasn’t stopped yet. Lots of new cars and homes sell fast. Fewer than half of my state’s population is in the work force at all and it’s been that way for years, and we have no big industry that can wreck an area with layoffs.
Big-Preference-2331@reddit
Arizona. Life is still good here. My dad is in Wisconsin and it's still good there. My brother owns a union construction company in Wisconsin and he is very busy.
Bastilleinstructor@reddit
They are still building in my area, but most of whats going up was planned and speced a year or so ago. My husband is in electrical sales and is still seeing jobs they bid on last year get started. That being said, my job in education is at risk. We lost some federal funds and we are waiting to see whats happening with Title 1. Our district isnt hiring but moving people around.
MagicHugsforThee@reddit
I’ve been seeing a lot of artists cancelling tours due to low ticket sales.
fragrant-final-973@reddit
How many of them publicly sided with the regime? That certainly seems to be a trend.
icannothelpit@reddit
When business is good, sales reps don't call to check in and see what we have going on. Lots of sales reps calling the past 6-9 months.
Also, when you're entire economy is 7 Ai companies handing the same 20b back and forth.
Demarinshi01@reddit
This went out on Facebook 2 weeks ago. Just for camp Grayling. I don’t think I’ve ever seen them asking for donations for the soldiers. For the community and events, yes, not straight up for the soldiers.
I lived here for the past 11 years, and this is showing me (on top of reports from soldiers) the lack of basic necessity and food is non existent, from the military budget. But hey those lobsters and steaks were so damn important huh.
I’ve seen an uptick in training this past 6 months. Training every week compared to every few weeks. Thankfully I don’t mind the helos, or the military noises. Definitely an uptick in training at range 30 (multi used) and range 40 (air to ground range). I live less then a mile from range 30.
AprilOneil11@reddit
My credit transactions went from 46% in jan/Feb to 68%-74% last few months.. non essential business.
McRibs2024@reddit
75 bucks for berries, milk, bananas, hotdogs and a thing of detergent.
A full grocery trip would be well over 200. This is really just the breakfast stuff we needed for the kids.
Appropriate-Fun-922@reddit
You’re doing too much if that is truly the cost without exaggeration…
PricedOut4Ever@reddit
Yup. Some people do not know how to shop the deals and think they are too good to be frugal.
It is possible.
SpacemanLost@reddit
We have been tracking the deals and price history closely for the last 2 years and meal planning around them. They have gotten steadily worse, especially over the last 6 months.
AdMuted1036@reddit
Some people don’t have TIME to shop the deals.
McRibs2024@reddit
Northern nj. Didn’t save receipt but I can rough it for you-
Small pack razzberry x2
Small pack blackberry x2
Medium strawberry
Quarter cut watermelon
Bunch of bananas
Whole milk half gallon
On sale hotdogs - big pack but 7 bucks
Medium size detergent
What’s too much? I don’t want my kids just eating shit.
Girafferage@reddit
And God forbid you want to buy the food that isn't the triple processed slop.
ghostman-ichiban@reddit
More at a Depression disguised as a Recession. The MSM media don't get near that term to avoid causing bank runs.
No_Possible_7108@reddit
Not super knowledgeable about the banking world but I thought there were protections against that sort of thing these days. Or is that one of the thousands of things trump axed?
arb1698@reddit
We don't stop the bank run but we pick up the pieces and don't forget all fdic banks are minimum insured for 250k
ComingInSideways@reddit
It’s cool to know the FDIC could cover 1.42% of those deposits.
sealedwithdogslobber@reddit
They insure up to $250,000 of deposits per depositor. So if you deposit any amount up to $25,000, it is insured.
That said, Trump looked likely to target the FDIC last year and we have to keep our eye on that, and prepare to protest the hell out of any dismantling.
SushiAndKetamine@reddit
Frank-Daddy Wall Street Reform and Consumer Protection Act of 2010. They no longer have to give you $250k they can give you their failing stock. How is nobody else mentioning this?
ComingInSideways@reddit
I understand that. My point is only 1.42% of those all those insured deposits are backed by actual money in the DIF fund.
It provides only minor protections against bank runs. Even as it stand NOW.
sealedwithdogslobber@reddit
Yes, I’m familiar with the reserve ratio. It’s still sufficient to protect individual depositors with up to $250,000 deposited, which is the vast, vast majority of us. It’s also authorized to borrow from the U.S. Treasury if needed. The entire government would have to collapse for the average Joe to have to engage in bank running.
Is it enough to prevent economic calamity? No, I agree that it’s not. But I’m just speaking to bank runs.
ComingInSideways@reddit
No, it will not cover ALL $250,000 deposits. I am ONLY speaking about $250,000 deposits not those that exceed that.
It will cover 1.42% of those $250,000 deposits. I am not referring to the New York–based excess deposit insurer. I am just speaking of what the FDIC has available to cover the FDIC $250,000 coverage.
Only 1.42% actually has money available to cover it is there is a run. The fund had \~$140B on insured deposits of $10T. Just those insured funds.
sealedwithdogslobber@reddit
That’s why they have statutory authority to borrow from the US Treasury to make everyone whole.
ComingInSideways@reddit
Read the other thread branching from my original comment with the person who claims to work at the FDIC.
But yes, that is the jist.
The FED has $500B in emergency funds from the 2020 CARES act. That would cover just 6% of those deposits total. Beyond that the FED would have to start diluting the dollar by printing money.
My further point is that when we reach that tipping point the FED will be overwhelmed with requests for emergency funds from a multitude of sources. Nothing in this scenario implies only one element failing, this would be a systemic failure.
sealedwithdogslobber@reddit
The Fed is not the same thing as the Treasury. You still haven’t addressed the fact that FDIC has the authority to borrow from the Treasury.
FDIC insurance is back by the full faith and credit of the US government, hence my comment that the entire US government would need to collapse for our deposit insurance to truly fail. The latter could in fact happen!
I’m going back and forth with you because telling people that the reserve ratio equates to the amount of their deposit that they will receive isn’t factual or helpful.
ComingInSideways@reddit
The FDIC has the authority to borrow up to $100B “at a time” from the treasury. So if they are not borrowing from the FED that would bring us back down to \~2.4% of deposits.
Beyond that to borrow more from the US Treasury it requires an act of congress. They do have supplementary lines of “credit” they can use to bring the total up to about $1T under catastrophic conditions, which would mean \~10% of deposits covered.
sealedwithdogslobber@reddit
All that being said, it sounds like you no longer agree with your initial assertion that “to know the FDIC could only cover 1.42% of those deposits,” which is going to cause unnecessary panic and send people in the wrong direction. You could consider editing that.
We have plenty of things to actually panic about and the reserve ratio isn’t one of them. (In fact, we need to rally behind the FDIC.)
sealedwithdogslobber@reddit
Your math assumes that accounts exceeding $250,000 don’t exist. They do. You’re also assuming that other mechanisms such as selling off assets don’t exist.
I don’t what to tell you other than to read more about the topic before parading the reserve ratio around as a sign of certain doom.
sealedwithdogslobber@reddit
Jumping here to clarify for fellow peppers that the FDIC has more levers at its disposal than those identified in this comment. FDIC insured deposits are backed by the full faith and credit of the US government.
Stand up and fight back if the regime targets FDIC insurance. It is an incredibly valuable resource. And if you’ve got considerable cash, spread your money across institutions so your accounts don’t exceed $250,000.
arb1698@reddit
Eh we have a lot more funding then that we have an emergency loc with the fed where if we needed the money they would give it to us to stabilize the banking system.
ComingInSideways@reddit
The DIF only has that which is the FDIC insurance fund.
Can we pull it out our ass yes. But we already have $38T in debt.
sealedwithdogslobber@reddit
So you do acknowledge that the mechanisms exist to actually back everyone’s $250,000 deposits by borrowing from the Treasury.
When you speak as if FDIC insurance is close to meaningless, you make people less likely to act if and when Trump et al try to dismantle it.
We need Americans to understand the value of the protection FDIC provides so that we fight like hell if it’s under attack.
So please consider what you actually achieve by poo-pooing it, misleadingly implying that the reserve ratio means that FDIC insurance is virtually meaningless.
ComingInSideways@reddit
The FDIC is good and valid, but not unbreakable. That is my only point.
sealedwithdogslobber@reddit
No, it was not your only point. You claimed the FDIC can only cover 1.42% of what it insures and that’s harmful misinformation. Please consider editing so people aren’t misled.
ComingInSideways@reddit
You are right I claimed a percentage. My percentage was off. I revise accordingly.
sealedwithdogslobber@reddit
You’re doing Trump’s work for him by claiming FDIC insurance is virtually useless. Your comments are misleading and I’m trying to protect people from the disinformation. Have a nice evening.
ComingInSideways@reddit
I am not saying it’s worthless. It protects from minor runs. It is a good circuit breaker but it is not foolproof, and people need to understand even good things require awareness.
You are basically a proponent of people not trying to understand the underpinnings of things.
Truly the MAGA way.
sealedwithdogslobber@reddit
Idk where I tried to “not understand.” I was responding to a claim we now both agree was misleading. Thanks for acknowledging that it’s not worthless.
sealedwithdogslobber@reddit
Your edited comment still misleads because many large accounts deposits exceed $250,000. It’s simply not the case that only 10% of insured deposits (in other words, deposits up to $250,000) are insured.
arb1698@reddit
I work at the FDIC. Yes the Dif is our funds source but it is not the only we have emergency funds like the fed which are like break Incase of economic collapse level. Trust me I get it.
ComingInSideways@reddit
What is that emergency fund out of curiosity?
A lot of the time people reference general slush funds, which is fine when only one group is reaching for it, but in time of economic strife, the likelihood of multiple groups reaching for those same finds jump.
Please enlighten me as to the what the emergency fund is pulled from.
arb1698@reddit
We have a lot of Treasury and other bonds, with the guarantee that if no one else will buy them the fed will buy them at full dollar value. FDUC is the only ones with access to it no one else. Any money it wants gets auto reinvested and it's been building since we were founded.
ComingInSideways@reddit
See my edit above. I think you might underestimate potential cascading failures. But I’ll keep my fingers crossed.
arb1698@reddit
Yup as I said we know this would devastate e The economy this is our last ditch hail Mary. Other then in theory we could establish a temporary bank in theory. God I hope we never get there.
fragrant-final-973@reddit
I would fully expect this admin to step in the way of those protections and keep it tied up in court until the starving people were dead.
sealedwithdogslobber@reddit
The FDIC was created to prevent bank runs, and while Trump signaled he’d target it last year, it’s still standing and still insuring our deposits up to $250,000.
Also, FDIC isn’t funded by federal appropriations, so it won’t go kaput during a shutdown.
We need to keep our eyes on the FDIC and raise hell if they dare touch it.
SushiAndKetamine@reddit
Look up the bank bail in legislation from 2010. They don't have to pay out $250k in cash anymore. They can give you shares of their failing institution's stock instead.
Complex_Confusion552@reddit
Dude, it's already game over.
sealedwithdogslobber@reddit
I’m not a dude
Prior-Win-4729@reddit
Neither myself nor my friends have more than $60 in our bank accounts so I'm not sure there is much to run these days
sealedwithdogslobber@reddit
Fairrrrr point. The only good news is that your $60 is insured. You don’t have to race to the bank in the event of another Depression.
torquil@reddit
The FDIC was just one major bank failure away from insolvency in 08-09. They're nowhere close to being able to handle a run on banks. As I approach 60, I've come to have nearly zero trust in the system, the institutions and programs, and the people who govern. The truth is that you're really on your own, and people need to start thinking that way as much as their mental/emotional health will allow. And please note that I am saying this to remind myself as much as to warn others!
sealedwithdogslobber@reddit
When the fund becomes insolvent, the FDIC has statutory authority to borrow from the US Treasury to make everyone whole up to the insured amount.
That being said, none of that helps us if the US government as a whole becomes insolvent. 😬 Do you have any tips on how you manage this risk?
Vegetable-Board-5547@reddit
Some silver or gold. Property that can cultivate. High need barter goods.
future_sommelier@reddit
Canned goods, solar generator, and arable land would certainly help.
speedyg54@reddit
The responses you're receiving are absurd so I'll try to demystify it a little.
Banks are required to keep high quality liquid assets on hand to maintain certain liquidity requirements. However, no bank is safe from a "Bank Run", which is a term to describe a severe run on an instituons' deposits. Banks are built on trust and if that trust disappears no amount of safety will save a bank. Prior to 2023 the only modern instance of financial system failure was '08, which was a drawn out crisis that culminated over many months/years. But in '23 Silicon Valley Bank went under due to Asset Liability mismatch concerns (i.e. liquidity) and the velocity of it going under is what concerned the industry and regulators. Trump has dialed back some protections but nothing like his first term which directly led to the '23 regional crisis.
No_Possible_7108@reddit
Thanks for the detailed response, I really appreciate it!
Have you seen any big concerns on the horizon regarding banking? I really would hate it if I wasn't able to withdraw the entire $20 I've got in my account!
speedyg54@reddit
Nothing related to the banking sector. Imo, the largest risks to the economy as a whole are the AI bubble and this administration, but that's my own opinion.
Vegetable_Peanut2166@reddit
Trump nixed the last of the half assed protections still holding from 08. Banks are not required to hold much at all on hand.
Strong_Web_3404@reddit
They get away with it, because the traditional definitions don't work anymore. I remember during 2008 listening to economists arguing if that was truly a recession because production rose, while employment and other markers fell. Why? There were a ton of people that automation had made redundant. And now the businesses could let them go, and have cover. We are there again. Only this time with a war and a drought to make things worse.
Badger_Actual1@reddit
..we still had a war going on in 2008
Strong_Web_3404@reddit
True, but this war is different in a qualitative way. In 2008 the ongoing war was not threatening the global economy on its own - fuel supply, fertilizer supplies, etc.
SecretSquirrelSquads@reddit
Everything around me seems dingy - not sure how to explain it but I’ve seen it before growing up - a thriving market shops ends up being full or cheap plastic stores and eventually everything is just closed and allowed to decay.
I live in a nice area. Not rich, not poor, nice and quiet. When I moved here everything was bright and new, the mall (now I don’t even know what’s at the mall, maybe the cheap replacement stuff), the signs on other shopping centers old and dingy. Like a house that is never maintained just allowed to deteriorate - I notice more of the cracks, on buildings, types of cars, no backyard parties, it is turning into a ghost town but with plenty of living people)
dak-sm@reddit
The sign thing has always bugged me. I mean, that is the first thing that a customer sees, and the owners et the. Fade and look crappy as hell. To me that signals either extreme financial distress or a complete disregard for the principals of good retail advertising. Either way, it is simply depressing and I refuse to shop in p,aces that look dilapidated from the get go.
SecretSquirrelSquads@reddit
I know! More because I saw how everything was when things were being built and this area was just starting to grow - everything so clean and nice, now it’s slowly just being let go - shops are gone - or replaced with some cheap-stuff store - nothing is being replaced with something better - just downgrades and neglect
karl4319@reddit
I expanded my garden both last year and this year. Went from growing some herbs and fresh vegetables to growing most of my produce for the year last year and I'm shooting for nearly all this year.
Anyway, last year only 1 other person had a garden on my street. This year there are more with gardens than not. When I asked a few, they all said it was to grow food and save money. Things are looking bad enough tht even my clueless, republican neighbors are prepping for out of control food prices.
redpain13131313@reddit
To add just a little to this, the cost of plants have went up. And with trees it has doubled. Three years ago (I think it was) I bought a good size peach tree for 15$. The same tree this year, over 31$s. 2 years ago I bought 3 apple trees 21$s each. This year 32$s for the same size trees. Two years ago I paid 11$s for a good size potted blueberry bush. This year I picked up two of the ones that basically look like twigs in a box for about 12$s each. It's getting way more expensive to grow your own food in a relatively short amount of time.
I'm not very good at growing from seeds which is why I've been buying already above ground plants. But even if I were it would take, for example, a peach tree 3-4 years to have its first fruit.
Void-Priestess@reddit
If more people jump on this trend, how much would you bet food corporations start pushing bills outlawing gardens in the name of "food safety"?
Separate_Fold5168@reddit
Current FDA head is cool with raw dogging raw milk so....
Void-Priestess@reddit
Fair, but this kind of legislative abuse typically happens at the state level. For example, look at what Florida gas and power did to make solar in Florida practically impossible.
spaisoflaif@reddit
this is itself a recession indicator
Whyam1sti11Here@reddit
I have to limit my grocery shopping to one protein a week, whatever I can get cheap/on sale. If I don't, half my grocery budget goes to meats.
katarina-stratford@reddit
Legumes are incredibly cheap
Whyam1sti11Here@reddit
I can't eat beans more than once or twice a week. I get tired of them pretty fast. Too many beans and rice years under my belt. My staples are now meat and fresh produce, with beans/rice a few times a week on the side.
Capital-Pea-2565@reddit
You can do a lot with legumes. Also try tofu.
Soy chunks are great. When seasoned right they taste and feel like chicke or beef. Great stuff.
Capital-Pea-2565@reddit
Lentils, beans, rice, tofu. Trust me.
Soy chunks and flakes too.
Eggs on sale whenever you can.
Gygax_the_Goat@reddit
BEANS
working-mama-@reddit
Meats near expiration can be found with pretty steep discounts sometimes. I got a nice pack of fish (ocean perch!) for under $2 this weekend.
DeadlyYellow@reddit
I've been buying large cuts and processing myself. The Meijer around here often has BOGOs and BOGOHOs on pork bulk.
GandalfsCorgi@reddit
It seems like kids are getting hair cuts less frequently.
Boulder_612@reddit
gertburgers69@reddit
I live in bizarro world where the $40 car wash place has a crazy long line, there’s an hour wait for mediocre overpriced food at Chilis and Texas Roadhouse, the cheapest ticket for a basketball game is $300, football cards that cost $1000 a box, my neighbors keep buying $50k trucks and SUVs, while other neighbors need to feed themselves from the community fridge.
Zealousideal-Ice-985@reddit
Glad someone else lives in bizarro world too, the wealth disparity is INSANE.
ChewieBearStare@reddit
The quality of employees at fast-food joints, gas stations, etc. has increased markedly in my area. Seems like it might be due to layoffs/lack of job creation pushing adults who would work elsewhere into these roles.
working-mama-@reddit
This was one of the most startling things to me in the first year of the Great Recession. All the service and retail jobs that were usually filled exclusively by immigrants in a high HCOL I lived at the time, all of a sudden started to get filled by white, educated locals.
FethB@reddit
Yup, in 2009 I went from making comfortable money at an advertising agency to a series of temporary gigs that had me scooping ice cream, putting together fruit bouquets, and slinging sodas for single-digit hourly wages.
Exaggerater4000@reddit
I work in a major city tourist trap. The last few weeks there has been significantly less traffic. I can now make a right turn without having the block the intersection...
ctilvolover23@reddit
You shouldn't had been blocking the intersection in the first place.
Vegetable-Board-5547@reddit
There are 7 school districts in my county of 500k people. Five of those school districts are laying off, cumulatively, 600 staff.
future_sommelier@reddit
I didn’t see anyone mention the Spirit Airlines shut down. 17,000 employees fired over night. They had secured $320 million funding contingent upon jet fuel prices at the end of 2025. The bank withdrew their line of credit due to rising fuel costs. That also means that the cheapest option no longer exists. Competition is always good for the consumer.
Impossible-Minute901@reddit
I saw a lot of people on the side of the highway. They were by their car, just waiting. Did they push too far before buying more gas and now they are stuck waiting for a friend?
TheHauk@reddit
Someone told me that pop culture collectible purchases were a recession indicator. Think like beanie babies, labubu, Pokemon cards. No idea if that's true.
m4m249saw@reddit
I don't know if you want to consider this a recession indicator but it cant be a good sign, the grocery store Smiths i go 2 is filling its shelves with Kroger brand products you could barely find Kroger items beforehand now it's everywhere and everything
Excellent-Source-348@reddit
I was watching a news report about grocery shopping; people are looking for deals and so they are buying lots of store brand items. So maybe it's just them stocking more store brands.
No_Possible_7108@reddit
Not sure I am following what you are saying. Is Smiths owned by Kroger or something?
I know of supply issues for name brand stuff but I am just imagining your grocery store running over to Kroger real quick to get stuff to resell at their store
baardvark@reddit
You joke, but an international grocery store near me blatantly resells Kirkland products.
davidm2232@reddit
As opposed to trying to trick people? A lot of rural stores resell Kirkland stuff. Where do you think they get all the items to fill their shelves? Wait until you hear that restaurants resell items from the local grocery store...
baardvark@reddit
I don’t know what you mean by tricking people, but this store is comically close to the costco they are sourcing from.
davidm2232@reddit
Don't you need a membership for costco?
ChewieBearStare@reddit
Yes, Smiths is owned by Kroger.
MockeryAndDisdain@reddit
It is owned by Kroger. They got it back when they got Fred Meyers in the 90s or early 00s
Fit_Peach-@reddit
What does that indicate?
m4m249saw@reddit
I just imagine it shows the store is planning for people to be spending less and they are buying the cheaper stuff instead of name brand. And at my store it's kind of all of a sudden the last 6 months full of Kroger stuff I buy Kroger stuff cuz I find a good for the price now I got all kinds of Kroger s*** that I never had before
lolallsmiles@reddit
Shockingly I still have seen no signs and haven’t for the past year. The stores/malls/restaurants are still packed in the fairly big city I live in. I’ve been prepping for the past year now since everyone says to keep prepping with “shortages” which I still have seen nothing.
lolallsmiles@reddit
For the record I do think the country is going to collapse because of the current administration and honestly at this point I just want it to happen already cause I’m tired of this constant fear of “when”
LunarAnxiety@reddit
Friend was out of work for almost a year doing everything they could to get a job. Finally landed that job and all is well!
They got laid off today with a mass of other folks. They'd been working there for 3 months max.
SweetLittleKarma@reddit
A popular yearly event near me is now asking for donations to keep the event admission free. Not sure if this is a one off but is unfortunate since there aren’t many free activities anymore.
ConcreteCrusher@reddit
Less trains going through town.