PREPARING FOR A RECESSION OR DEPRESSION

Marion Pellicano Ambrose

It’s just my nature to be a wide eyed optimist. I tend to see the good in people, always hope for the best, and still believe in happy endings. That’s why it’s out of character for me to be so concerned about what’s coming in our Country’s near future. I’ve read all the literature and talked to some experts and, in spite of my positive attitude, there’s no avoiding the fact that we’re headed for a Great Recession, if not a Depression.

So what do we do? The experts have lists of precautions we should take, but I’ve chosen the ones I think will be most helpful if a recession, or God forbid, a depression were to come about.

First: Prepare as for any emergency. Stock up on survival supplies: water, fuel, non-perishable foods, medications, personal hygiene items, batteries, flashlight and water purifying tablets.

Next: Save as much as you can. If you have the money to buy gold or silver, do it. If you can pre-pay your mortgage and pay off your credit cards, do it. It’s best to be as debt free as possible. At the very least you should have an emergency fund that equals 3 months of living expenses.

Finally: Learn to prepare inexpensive meals from scratch. Get a cookbook like Depression Era Recipes by Patricia R. Wagner or Stories and Recipes of the Great Depression of the 1930's, Volume III by Rita Van Amber Paske.

Remember to keep a positive attitude. Remind yourself:   "This too will pass."                                                                                                          The best way to prepare for a coming Recession or Depression is simply that: TO PREPARE!

DOUBLE DIP RECESSION: IS IT COMING?

Marion Pellicano Ambrose

Former Secretary of Labor Robert Reich recently warned that the U.S. is likely headed back into recession. Such a move would bring us into what is called a “Double Dip Recession”. This is when gross domestic product (GDP) growth slides back to negative after a quarter or two of positive growth. A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession .The causes for a double-dip recession vary but often include a slowdown in the demand for goods and services because of layoffs and spending cutbacks from the previous downturn. A double-dip, or “W Shape” Recession is a worst-case scenario, yet many experts in the economic and financial sector have voiced concern.


What can you do to protect yourself and your family in the event of such an occurrence?

First: If possible, have an emergency fund set up in a high interest FDIC insured bank account. This will keep its full value no matter what happens in the market and will give you access to money in case of a layoff or cut in pay.