What most concerns you, and why?

[usmc1]

What most worries you. Home depreciation or the high cost of gasoline and utilities?

[scubare]

What most worries you. Home depreciation or the high cost of gasoline and utilities?

Well that's not an easy one usmc1, but I think the high cost of fuel probably affects more people overall. When diesel gets so high that trucking companies can't stay in business, then the cost of everything is going to skyrocket. Whether it's food, building materials, clothing, or whatever, prices of goods will be all but out of reach for many. :disappointed:

[Qikdraw]

Well that's not an easy one usmc1, but I think the high cost of fuel probably affects more people overall. When diesel gets so high that trucking companies can't stay in business, then the cost of everything is going to skyrocket. Whether it's food, building materials, clothing, or whatever, prices of goods will be all but out of reach for many. :disappointed:

Thats exactly it. The high cost of fuel hurts everybody in the economy. One of the reasons for the falling economy is that people just don't have the free money to spend anymore, its all going to gas. (or at least a good portion of their free money) The price of gas has a direct impact on the economy.

I'm in my house long term, so I'm not worried about home prices. I know homeowners who have lost over 200k on their home value, that are not worried about it. They don't like it, but not overly worried about it. Of course they don't like hearing that the same floorplan two phases down from them are being sold for so little. :p

Qikdraw

[nudeM]

Home depreciation affects you only if you refinance or sell your house. The high cost of utilities affects everyday life from gasoline, groceries, clothes (if need be) lol, electricity etc, the list goes on and on. The high cost of transportation of goods is passed down to the consumers, or the end users. The problem is, it's only going to get worse before it gets better.

[tiggy]

I dont know what current US prices are but I bet you're glad you don't live in UK.
Petrol £5.60 a gallon Diesel even higher,aproximately 20% of fuel price
is for the companies the other 80% is taxation.
Tiggy

[nacktman]

This one is easy ... Gasoline and Utilities.

The reasons have already been spelled out by the previous posters.

[KirkOntario]

Despite higher gas prices our economy here in Canada is very strong. Balanced budgets. Lowest unemployment rate in 33 years. We could do more to cut personal taxes though...We have a high dollar versus the US dollar which is not as good for us for exports.
If the US economy continues to falter we will be more negatively affected....

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080307/jobless_rate_080307/20080307?hub=Canada


"Canada's unemployment rate held steady at 5.8 per cent in February as job growth soldiered on, despite the economic downturn in the United States.

In the report released this morning, Statistics Canada said the economy added 43,000 jobs in February and the proportion of adult Canadians with jobs hit a record high of 63.9 per cent.

The unemployment rate is at a 33-year low and Statistics Canada says there have been 361,000 jobs created in the past year."

[Eric6420]

To KirkOntario,

It is true that more people work, but the other side of the coin is what kind of employment? Because a lot of people are loosing high paying job such as in the paper industrie (Kruger, Tembec...) and theses jobs are often replaced by jobs that are at a far lower salary such as a part time job at Wall Mart.

[usmc1]

I chose fuel over depreciation mainly because of my circumstances.

We just bought and I got a pretty good fixed rate, and paid 10% below asking, slightly below appraisal, and 10 to 15 percent below comps in the area, and the seller had to bring money to closing. So, I drove a good bargain and figure to, in the long haul, appreciate.

But, those looking to have or build some equity in their homes are in a terrible bind, whether they want to refinance or not. They're paying off loans with a principals of 350K for something now valued at 200K. That 150K is quite a nut. Vinny down at the barbershop don't get that kind of vigorish, and he's connected.

But, living in a non-metro area, with absolutely no mass transit alternatives coupled with living in a region with harsh temperature fluctuations, the costs of gas and utilities is going to be heavy. I suspect that it'll work itself into our way of spending, and we'll gripe and make some adjustments. But, those who do not have the ability to make those adjustments are going to suffer terribly. Going to? My aunt Hattie's black cat's arse, they already are!

So, personally, I'll feel the effects of fuel and utility costs

[LamontCranston]

Of those two choices it's gas and utilities. I'm gouged $30+ per week to commute to work and $300+ per month for electricity, and heating the house is above all that.

It's funny...
I saw a debate at the state legislature on public access TV the other day. They were touting the idea that people paying cash at the pumps should get a price break becasue of the 3% the credit card companies wack the gas station.

Why's that funny..?
These legislators were debating something they don't control while ignoring what they do control. CT has a 25 cent/gallon tax (8% at today's price). http://www.connecticutgasprices.com/tax_info.aspx

What really worries me though is losing my job to cheap labor in India. I work in the software engineering field (insurance industry).

"Let's stop giving tax breaks to companies who are moving jobs overseas."
-- Senator Obama

[KirkOntario]

To KirkOntario,

It is true that more people work, but the other side of the coin is what kind of employment? Because a lot of people are loosing high paying job such as in the paper industrie (Kruger, Tembec...) and theses jobs are often replaced by jobs that are at a far lower salary such as a part time job at Wall Mart.

This is an old canard. Part time jobs are a path to full time employment and serve the needs to students, second income earners and older people. More jobs is never a negative. My understanding is the jobs added were mainly in Ontario which has been losing manufacturing jobs and that many of these jobs are in construction. We have the lowest unemployment rate in 33 years. That's something to cheer about even if the future looks uncertain. Our country is in one of the strongest positions of any of the G-8 countries to weather an uncertain future. Much better than the US is.

http://www.theglobeandmail.com/servlet/story/LAC.20080308.RJOBSCANADA08/TPStory/Business

[usmc1]

Interesting, so far all respondents are concerned about rising fuel costs, with the exception of the usual culprits who are constitutionally incapable of staying on topic.

I really am surprised, though, that depreciation of one's home value is not more of a concern.

[naturalmanwa]

The price of fuel and utilities affects more people. I am in my house for the time being and have a large equity because I have been in it for 18 years and the prices were lower when I had it built.

I was involved in the allocation and distribution of fuel before I retired from a major RR in this country. Fuel was about 50% of the pump price but it still is expensive. The economy has to have a sound cash flow to keep fluent. If people don't buy groceries and furniture or go out to dinner, everyone suffers down the line.

[Naturist Mark]

High and rising costs of fuel and utilities most immediately affect the majority of households, and in times when incomes are stagnant or on a negative slope (as they have been in the US over the last 7 years) there is often little flexibility in household budgets even for temporary price jumps, let alone long term permanent inflation. No doubt that is a clear source of pain for most and easily recognized.

But in the longer term the collapse of the former rising tide of appreciation in residential real estate is even more insidious. Rising home equity has been the main source of wealth accumulation for the majority of Americans, and probably for many other nation's citizens. It has kept the American consumer economy going despite the erosion of personal income, and prevented most middle class Americans from perceiving their slip in economic status. No longer.

People feel the immediate pain of volatile energy prices, but the loss of home equity alters their perception of their long term well being and prospects for the future, and that will have a truly transformative effect on politics and economics.

-Mark

[JeepNude]

I own my property and home outright, and I homestead the place, so it is going to stay in the family for eternity (I hope). So, home values mean precicely ZERO to me.

On the other hand, rising fuel prices have an effect on EVERYTHING. Not just gas for transportation, but also fuel for delivery of goods. The old saying "If you got it, a truck brought it" is very true. As fuel prices rise, the cost of goods rises. That includes food and necessities like toothpaste and T.P. Even fast food feels the pinch because everything they serve was brought there by truck. You don't see the 99 cent Whopper or Big mac anymore. Even Taco Bell's 99 cent value menue has become the 1.19 and 1.29 value menu. It all comes back to fuel costs for farmers growing the food and trucks delivering it.

So, THAT is the basis of my answer that rising fuel costs are more important.

[Boreas]

I am also more concerned about the higher fuel costs. I am though, very aware that we here in North America still have it very good.

I have seen some positives in the higher fuel costs around here. I live in a part of Canada that is sort of Texas north. We are oil and gas country, with cowboys and big trucks. This is the place where men are men and have their gas guzzling toys such as quads and snowmobiles. We were being overrun with Hummers and other big obnoxious vehicles. In the last few years, we have seen many more small cars on the roads, including some "Smart Cars". Who knew! There has also been more awareness of the distance food travels to get anywhere. Hopefully, we will start looking at more local ways to produce food again.

At the same time, I do live in an area that has for real extreme temperatures (usmc, you think Texas is extreme???) We have long winters with temps that go down to -30 or -40C and so we do rely on oil and gas to keep us alive and warm during the winter. We also have shorter days so need more electricity to light our homes.There is little need for air conditioning in the summer. We do get temps that go up to 90F or so, but it tends to cool down at night. If you set things up properly, you can rely on breezes to cool things off. Of course though, many people do have air conditioning.

I am somewhat concerned about the political issues that come with oil and gas shortages. We have seen some of that already. I hope it does not become worse.

[David77]

You don't see the 99 cent Whopper or Big mac anymore.

There is still the "Big and Tasty" burger for $1. with lettuce and tomato, at McDonalds.

Ronald Mc Donald or whomever, send me a commission for this statement!

[MoonShadow]

LOL David; that was a good one and you know, you're right. Hamburger meal are still a good value!

[florida-david]

As an architect, i have in the past been fortunate to have small residential work regardless of the housing market. When people could not afford to buy the larger house, they simply added to the smaller house. Now people have no money to spend as the home equity they used to have to invest in their homes, eating out, taking vacactions, etc. is gone. Add to that, everything has gotten more expensive due to transportation costs (fuel), yet the oil companies report record income. Well no wonder, if they were making 10% profit on a gallon of gas at $2.00, they are still making the 10% profit, but now the fuel sells for $3.00. Unfortunately, the uber-rich horde money (contrary to what Prez. Bush thinks).

So i voted for the fuel as the bigger evil, though for me personally, my work is going to suffer with the low housing prices....

by the way, have you noticed how the food at restaurants is getting smaller, but the price stays the same? This is amazing. You now have to order two meals at McDonalds to equal a real meal (and i am small?!). You would be better getting your fast food (they are not that fast anyways) at a real restaurant like Applebees, Sweet Tomatoes, etc....

[JeepNude]

About the only fast food I eat is Taco Bell or (my favorite) Del Taco. As a vegatarian, it is difficult to find healthy food 'fast' anymore.

At Taco Bell, the 7 layer burrito rocks. No meat, complete protein.

At Del Taco, their veggie works burrito is my all-time favorite! Yummy!!

And, back on point, Yes the food has gotten smaller! You're RIGHT!! The tortilla they use for their burritos now are what used to be the soft taco supreme size. They used to make burritos with huge tortillas, and they ended up being really big, I couldn't finish a whole one by myself. Now, I can almost finish 2 of them, and I am not a large bellied guy.