Thread regarding General Motors layoffs

By December, all of us will be humbled financially.
Stay strong, hustle, walk with Jesus.
Never give up!

"Office buildings used to be a thing."

It's different this time.
You'll be fine because you are special.

"The world changes. The economy changes. Get used to it."

and the national debt keeps increasing
and nations collapse

@7ryc+1tgonYgT
8 track tape players didn't take down the global economy.
Do you know what did? American residential real estate in 2008.
If you examine what is going on with the banks and commercial real estate right now and then reference the 8 points I made in the post above, you can see that "looking forward" is akin to praying, voting or wishful thinking.
Some people have the luxury of being naive right now. It won't last.

@6eew+1tgonYgT

Did people owe blacksmiths and stable owners anything when the world transitioned to cars?

Should people who drove Model Ts also have bought horses to keep the old economy afloat?

The world changes. The economy changes. Get used to it.

Office buildings used to be a thing.

So were 8 track tape players.

Look forward, not backwards to the old ways.

"Worker bees don't owe investors a RTO so they can make money."

What happens to those workers bees when investors lose 30-50% and pull out of the market? What happens to worker bees when the banking system collapses because the businesses that occupied the commercial real estate hand in the keys, leaving billions in debt to the bank? What happens to pensions and 401ks when the market crashes? What happens to all the retirees and people hoping to retire when this happens? What happens to all of the business surrounding the vacant offices? What happens to the employees of those businesses? Do you think they can buy cars to keep you employees? What about all of those investors, bankers and retirees?

You are right. It really is that simple. Worker bees don't owe investors a thing. The choice of RTO or WFH is only something the worker bees should be concerned with. You have all the power and you don't owe anyone a thing. You are entitled to work from home at your own leisure. Have fun with it!

All investments are a gamble. No sure things.

If people invested in commercial real estate, maybe it'll be a bad investment if buildings are vacant.

Worker bees don't owe investors a RTO so they can make money.

It is past time to end the fed/central bank corruption system and return to the constitution and sound money.

compare
ratio of cost of house vs salary over the decades
also what are you getting with your house, an actually yard maybe

do the same for college tuition
do the same for job reliability

you don't need to be a genius to see the precipitous decline in standard of living going on now for the bottom ~80% over the last couple of decades
(not to mention the situation in many of our cities seems to be worsening quickly as well)

hmm, well at least i'll get to see the new dark age, didn't have that on my bucket list

OP is spot on.

Time to awaken.

@2vqp+1tgonYgT
You've said nothing that refutes what I said in the top post if that was your intention.
Getting in the weeds about an 80s timeline and comparing interest rates is off topic. The discussion was comparing the 2008 recession to today. I listed 8 supporting facts comparing the two eras. 1980s is red herring. So stay on topic or move on.

@1igb+1tgonYgT

There sure is a lot of that in America as a whole. Folks would be a lot less stressed imo if they didn’t get caught in the rat race of comparing to their neighbors or keeping up with the Joneses.

@2lyn+1tgonYgT

Think your memory is a little fuzzy but I’ll help you with some facts:

1. 30 year mortgage rates were around 18% in 1980/81 per CNN. Today they are about 7.5% with a quick google.

2. Per Federal government records, there was a recession from July 1981–November 1982 but not through 1987 like you claim. After the recession ended, markets adjusted and there were great gains

3. Over exuberance causes black Monday among other things but it had nothing to do with interest rates and like I said (plus you can google it for yourself) there was no recession at that time. The market had enormous gains (40 plus percent for the year) leading into that bubble popping.

Can understand not liking the current housing situation but imo the main issue is a lack of supply on the market driving up prices. Plus there are outside investors buying up homes furthering the issue of supply.

@1ice+1tgonYgT
I was a kid when the interest rates were high in the 80s. I remember what happened as a result of them. A massive recession leading up to black monday. Thank you for suppirting my point.
House prices were a fraction of what they are today. The interest rates aren't as high today as they were in the 80s but when you factor in the vastly higher prices with the interest rates, you get an affofdability issue. In many cases, people are paying 1/2 or more of their income today on rent.

“Record high interest rates”

Guessing you weren’t around in the early 1980’s? The current interest rates are nothing historically speaking. Folks have been spoiled with record low interest rates for a little while.

"Because once the commercial and residential real estate collapse happens, it will take down the economy like a wrecking ball."

when did you figure this out Feynman

our national debt was around 5 trillion on 2000
it is now around 35 trillions about 2 1/2 decades later
we have no way of paying it back
that is probably one reason why we are so anxious to get in a big war with Russia or China

9 out of 10 people at GM:
https://www.youtube.com/watch?v=r0HX4a5P8eE

Nearly 1-In-3 Americans Earning Over $150,000 Worry About Making Ends Meet: Fed Report
Americans in upper-income groups are concerned about their ability to pay bills, with more than 15 percent of this demographic taking up additional jobs over the past year, according to a survey by the Federal Reserve Bank of Philadelphia.
This percentage is higher than for those in the income groups of $100,000 to $149,999, $70,000 to $99,999, and $40,000 to $69,999. Only individuals who earned less than $40,000, the lowest income group, were more worried than the $150,000-plus group.

The Tortoise and the Hare
I know so many at GM with McMansions and new cars. They are so much better than the rest of us. But they are living paycheck-to-paycheck and are one missing paycheck away from losing everything. So if you are one of these people and you find yourself judging people in used cars with modest homes, you will be well served to remember that these people likely have zero debt and make about the same salary as you do. Imagine that! That's how it's really done. Have a nice week off.
Your college degree and your level at GM will not mean much when you end up picking food up at a food bank and the guy with the beat up Saturn is donating.
Giving this a thumbs down might make you feel better. Go on... do it!

The "Urban Doom Loop"
...
Empty commercial real estate: Some cities are offering incentives, such as tax credits and zoning changes, to encourage developers to repurpose empty offices into apartments or community centers. However, these efforts may not be enough to solve the problem, and that the “Urban Doom Loop” of vacant offices could have far-reaching consequences for the economy. As office buildings remain empty, it can lead to a decline in surrounding businesses and a decrease in property values, creating a vicious cycle that is difficult to break.

Do you see an "Urban Doom Loop" already happening along avenues like Van Dy-e or Mound? And this is during the peak of the biggest economic bubble in American history. What will these avenues look like during the recession? Right now there are endless for lease/for sale properties. As the economy scales down, we will see many businesses disappear and this will spread.