We are living in the worst financial times since the Great Depression; the big picture is becoming more frightening with each passing day, as the downward financial spiral continues. Even more frightening is the fact that no one knows what to do in order to stop the freefall, and nobody knows when it will end. If the downward financial spiral continues any further, we may fall through the safety net and find ourselves on the street toting all our possessions in plastic bags. This is not a recession, it’s an economic Pearl Harbor.
It is not only impacting the poor, but also the working class and even the rich. As one CEO stated, “One day, cock of the walk, next day a feather duster!” Consider the fact that Oprah Winfrey is now worth more than General Motors. Over at Chrysler, they are burning the furniture to keep the house warm, and Ford is literally running on fumes. Prior to the Bush presidency, the Dow hovered at about 13,000; on March 2, it fell below 6,000, and it is still falling. If you invested $1,000 in Citigroup just three months ago, today it would only be worth $181. If you invested $1,000 in the Las Vegas Sands, today it would only be worth $27.37, and if you thought Sirius XM Radio was a good place to invest your $1,000, today it would only be worth $56.34. If you purchased a home or condo three years ago, today it’s only worth twothirds of what you paid for it, as more and more homes go up for sale and bank foreclosures rise.
Depending on the vehicle you are driving, soon there may no longer be parts available for it, nor will the warranty be valid if the automaker declares bankruptcy. The company you work for may soon be closing its doors forever; Fort Monmouth has a two-year horizon before it closes its doors forever, and it sails into the sunset, thus further adding to the millions currently unemployed. With Fort Monmouth gone, the unemployment rate will double over 16 percent in the surrounding communities. As unemployment rises, and there are fewer and fewer shoppers, Monmouth Mall will then go the way of Seaview Square Mall.
Twenty-five banks went under last year, and 18 have folded so far this year. Currently, there are 250 banks on the government’s “watch list.” Your bank is not required to tell you if they are on the list. … Food pantries are feeding more and more working class and unemployed along with the poor. As the credit crunch deepens, shops and stores have noticeably fewer items on their shelves as a result of not being able to procure supplies from their wholesalers, who fear that they will be stuck with the bill if the retailer goes out of business. Hospitals are closing their doors. With an estimated 11 million Americans out of work in 37 states, the Department of Labor and Industry, which distributes unemployment compensation, is running out of money, while — thanks to George Bush — the Iraq war continues to cost us $24 million an hour.
More and more communities are freezing salaries and placing their employees on mandatory furloughs in an effort to balance their budgets. The post office is contemplating reducing mail deliveries to four days, and other communities are considering cutting back on garbage pickups. Some communities are even closing schools and laying off teachers as the economic dominos continue to fall. New Jersey — along with 17 other states — is contemplating 12-day furloughs and laying off state workers. These are very scary times for all of us; none of us knows when we will be next. And, we are not alone—the poison has spread to China where 65,000 factories have closed and, in Europe, unemployment is already double digit. In some countries in Eastern Europe, there is already rioting on the streets and military forces are needed to quell the violence. Nobody knows what to do or when it will end; these are very trying times and most of us have never experienced this before.
Thomas A. Blasi is a resident of Eatontown.