Thank you to all who decided to take the quiz yesterday and shared their results. Many found the results to be fairly accurate. If you haven't taken the quiz yet, please do so, and share your results.
The economic news today is not shocking, but it has the DOW taking a tumble at the moment. The GDP numbers are in for the 4th quarter of 2008, and they are showing a contraction larger than the economist had figured. It looks like the government may be owning up to 36% of Citibank as well.
I mentioned a few days ago that I would be delving into practical suggestions for dealing with a recession or even a depression. If you read any article on the Internet on this topic, you can boil down your recession/depression proofing preparations into three areas: pay off debt, save what you can and stock-up on what you will need. Furthermore, stockpiling or having a reserve of goods and raw materials can be broken down into these categories: food, personal hygiene and clothing. Yes, some of you might have other categories, but these are mine.
Clothing is the area that I would like to focus on today. I had not thought about stockpiling clothing, but as I read more and more articles from survivors of the Great Depression, I discovered a couple of things. Shoes and socks or stockings were a very needed and often expensive item during the Depression era. I read many stories of people using cardboard inside their shoes to extend their wearability. Socks are another item that wear out quickly. I don't know about you, but I do not know how to darn a sock. I don't even have a darning needle. So, I am planning to pick up some extra bags of socks and underwear for the members of my family. I think this is just smart.
Sewing skills would be beneficial in leaner times. It seems that women and men who could sew did all right with their clothing needs. I have a lot of fabric that I intended to used for different clothing items. I never got those garments made, but I still have the cloth to use for whatever I might need. Learn how to sew a pair of pajama pants. Teach your children these skills as well so that they can help. Right now, clothing is very inexpensive, but this might not always be the case. A devalued dollar will make even a six pack of socks unattainable for many.
Every family must make their own decisions on how to wisely spend the resources that they are given. I hope that this gives you some food for thought today.
6 hours ago