Real estate signs sit in front yard of four houses on one in Detroit, Michigan. The Detroit area, had the highest foreclosure rate in the nation last year. (PHOTO CREDIT: GETTY IMAGES)
FROM CNN's Jack Cafferty:
The United States' economic problems are getting worse.
Americans are grappling with higher costs for food and gasoline, while their adjustable rate mortgages go up and the value of their homes goes down. The economy is losing jobs – 63,000 of them last month. The dollar continues to hit record lows against foreign currencies, like the Euro, while rising commodity prices signal inflation.
The nation's fifth largest investment bank, Bear Stearns went belly up. And the Federal Reserve, on a Sunday night, struck fear into everyone's heart by suddenly announcing that the government is going to make emergency loans available to Wall Street firms in addition to banks.
Why Sunday night? What did they know that couldn't have waited until Monday during regular business hours, when the fear quotient of their decision could have been greatly reduced?
Similarly, the Fed's race to dramatically lower interest rates in big chunks – for example, today's reduction of three-quarters of a percentage percent – also raises the question whether things are worse than we're being told. A recession is all but inevitable and it could be long and deep.
A new CNN/Opinion Research Corporation poll shows 65% of those surveyed are very concerned about inflation. 59% are very worried about unemployment. 48% point to the drop in home values and 40% to the drop in the stock market.
Here’s my question to you: How is the growing bad news about the economy affecting your daily life?
Interested to know which ones made it on air?
Groceries are killing us. We started a garden this year to help keep expenses down. We have to watch where we go and the cost of gas. And we are doing better than some I know. I fear more for what may come next and if it gets worse.
Josh from Tampa, Florida writes:
I bought a house in 2007, 100% financing at a fixed rate. Remodeled it and now almost overnight my house is worth 25% less then when I bought it. How exactly does that happen? It's a home, not a stock, people! Things are seriously broken.
Two weeks ago, a dozen plain donuts at Wal-Mart cost me $2.50. Yesterday, I went to Wal-Mart and the same dozen cost me $3.33.
Kevin from Red Hook, New York writes:
My boss is sweating bullets over the economy. The weak dollar and high costs are putting a huge strain on us. We manufacture car racing equipment and the cost of some materials has doubled in the last year, up 23% just this past week. He’s talking about making cuts, but doesn't know who or where. My main worry is that we've only got six employees and I'm the new guy. I'm getting ulcers already.
Ann from Newton, New Jersey writes:
I am over 70 years of age, unable to live on Social Security and still have to work to keep my head above water. With gas prices over $3.00 a gallon, food and heating rising, having to pay supplement health and prescription insurance, higher taxes, the water is now also rising past my lips. I hope I don't drown too soon.
Jeff from Boston writes:
Jack, I was laid off on Friday of last week. My brother just called to let me know he was laid off today. Does that answer your question?