What Recession?

Quick, when was the last time our country was in a recession? If you don’t know the answer to that question then the impending recession won’t affect you so much. Analysts predict a recession looming on the horizon and the wrong people are worrying about it. The Chicken Little syndrome (“the sky is falling!”) is in full effect because our people watch too much CNN. Folks who don’t even know the definition of recession are talking about pulling their last $20 out of the bank.

The truth is the recession doesn’t affect black people so much because, hell, we’re always in a recession. What’s the difference to us between a recession and just being black in a white man’s world? Aren’t we always the last hired and first fired? Aren’t the words “laid off” as familiar to us as “chicken and waffles”? Don’t we already get stuck with the highest interest rates on anything we buy? Are bankers lining up to give us loans?

The last recession was in 2001, albeit a mild one, but the point is most in the black community don’t remember it. Last night a friend of mine said there hasn’t been a recession in the last 28 years – and yes, he’s black and educated.

Not to make light of a situation that has many white people nervous and checking their stocks every 5 minutes – but, do you own stocks? Do you own a plot of land that doesn’t have a lien on it? Do you have over $5000 in the bank? Do you have at least one major credit card that isn’t in the red? If you made the minimum payment on that credit card over the next 20 years would you pay the balance off?

If your answer to those questions are mostly no, then you have nothing to worry about. You’ll be just fine.



 


32 Responses to “What Recession?”

  1. 1
    Coo Coo Bananas says:

    The whole economic system in America is one big scam. We’re all walking around with pieces of IOU paper that isn’t backed by anything. We’re all being held by the balls by this ‘Federal’ reserve. I’ve already made my plans to move outta here.

  2. 2
    milly says:

    LMAO…This is sad but somewhat true

  3. 3
    2thick4u says:

    I am very investment savvy when it comes to my money.

    I have a 457 Plan (Fixed Account and Stocks), a 401K Plan and a Retirement Plan at work that matches you 225% of every dollar you have in the account once you retire. I plan to retire by the age of 50 (if not sooner) with a bucket load of my money that I worked hard for!!!

    I hope that alot of people this year get out of the red and start saving their GREEN!!!

  4. 4
    niastar says:

    You must really hate yourself. You find a way to put black people down at every turn…..AND YOU’RE BLACK!!!! How about telling those people..not just black, what they could be doing to invest for their future instead of basically telling them “you ain’t got nothing and won’t ever have nothing so don’t worry, you’ll always be broke, this recession doesn’t affect you.” You are so ****ing sad.

  5. 5
    Bird says:

    Rest assured CNN is a better source of financial news than Sandrarose.com. Please keep in mind this is an entertainment blog.

    Just because there is a large segment of black folks who aren’t business savvy doesn’t mean none of us are. Please believe that whether you trade on the market directly or not, if you have a 401k plan, which many of us do, then you need to worry about a recession.

  6. 6
    MZN says:

    I’m with Coo Coo Bananas on this one.

  7. 7
    2thick4u says:

    Bird you are correct…I live in Houston…Enron ****ed up alot of people families that I know.’

    I work for the County…they better not **** with out money like that…LMAO:)!!!

  8. 8
    free says:

    niastar, i’m going to hope sandra was being at least partially humorous about this. as blacks, we do need to recognize how the economy works and make it work for us; otherwise, we will always be in the situations sandra talks about. i was once one of those payday loan people who had to pull myself up by the bootstraps. i came out of college in bad shape so, thankfully, all of my mistakes were made at a young age. now i am a VERY informed consumer and, believe me, it’s a different world out here when you have A credit. if you are savvy, you can make this recession work for you instead of against you.

  9. 9
    chocolate75 says:

    This is one of the best post I have ever read on your blog. You break it down very well. A lot of people may not understand what you mean but this is the truth. CHURCH!!!

  10. 10
    Sharonda says:

    Now y’ll know that white people didn’t want us black people to learn how to invest money.Why you think they have so much assets that is worth lots of money?Stocks and mutuals?Now that blacks are making money we should know how this economy works because stocks are 50/50.And now that they cutting SS, people need to invest more.Power of education is a wonderful thing.

  11. 11
    TT says:

    SandraRose doesnt speak for this black woman b/c I am on the right financial track!!
    Why would you down the black community. We are all not the same. That is the #1 reason we cant make it b/c we hate on ourselves while the other races are doing the same.
    As the ecomonist would put it: Its a RECESSION when your neighbor loses his job & a DEPRESSION when you lose your job. So w/that being said those at the bottom of the food chain are always the first to go & that means many minorities not just blacks should be worried!

  12. 12
    TT says:

    @ chocolate75

    ARE U SERIOUS?????? :( *sigh*

  13. 13
    kogletree says:

    I agree with chocolate 75. Yall can get mad and criticize Sandra for what she’s saying… but she did break it down extremely well!

  14. 14
    Smokie says:

    Well, for a great majority of black folk, what Sandra wrote is the absolute truth. We can pretend like it’s not, but it is. For those of us/y’all who do invest (in more than a 401K), surely you aren’t relying on sandrarose.com for financial advice?

  15. 15
    GWU says:

    I work for a bank (albeit in Canada) and Black people DO have issues with money, on both sides of the border. Your relationship with money is usually a learned behaviour. Usually it’s modelled after the people who raised you. Some folks rebel and do the opposite, but for the most part, if your parents had no money and poor credit, you’re more than likely to fall into the same trap. Why do think there are more cheque cashing places, than banks in black neighbourhoods?

    We should be following the stock market because we’re investing in it. We shouldn’t be aware of which credit cards have the highest interest rates, because we aren’t carrying a balance. And we shouldn’t be concerned with the high rates on payday advances, and cheque cashing fees, because we have bank accounts with money in them, and high access to funds. Unfortunately this is only true for a minority of us.

  16. 16
    h0tsauce says:

    I believe she made a very good point if you READ THRU the Lines instead of at them!!

  17. 17
    dakotab says:

    Dang Sandra you treat us like scrubs. :)
    I am a sister and I have my finances on point.

    Stock Yes not just in retirement.
    More than 5000K Yes.
    Credit card debt No.
    Land Not Yet.

    I can’t stand debt and I also can’t stand to see BLACK people waste money. But with all the books on saving and debt we have no excuse. The library card is FREE and they got free INTERNET. NewsPaper Business Section don’t cost more than 75 cents.

    But we a gottahave it kind of people. Every new gadget, style that come out we on it.

    This is the time to SCALE DOWN and SCALE BACK. But people don’t want to hear that.

  18. 18
    dakotab says:

    Books to Read if you are in SEVERE DEBT
    – Dave Ramsey’s Financial Freedom
    – Your Money or Your Life
    – Girl Get Your Money Right

  19. 19
    istandbehindtheIam says:

    Recession on the horizon? We’re already in a recession, the government just hasn’t called it for fear of mass panic. You have to read between the lines, yesterday’s move by the Fed reserve was not just a move to “stimulate” the economy it was also a hidden move to stave off inflation and to keep the mortgage industries afloat, that was not a good thing when BOA bailed/bought Countrywide out at 4.6B, that sent jolts throughout Wall Street. With housing slumps,a weak dollar overseas, gas @ 90.00 a barrel, jobs connected with the RE being lost by the dozens, all the Fed reserve is doing with it’s interest rate cuts is holding off the inevitable.
    Besides, anyone who does the grocery shopping regularly, can tell you the recession is here. Food costs have skyrocketed.

  20. 20
    Caron02 says:

    Sandra you are a miserable person *SMH* Love your blog though (LOL) Do have a man? Not that all women should have one…just curious.

  21. 21
    NC_NYer says:

    I definitely think Sandra’s being a little humorous, but she’s MOSTLY speaking the truth. And no, she is not HATING on the Black community. PLENTY OF PEOPLE OUT THERE NEED TO WAKE UP!!!! (like School Daze) She might be hating on the IGNORANT WAYS “our people” sometimes act. Do I have to remind you about Darius Miller, Andrea Yarrell and Gina Hunt (from Indianapolis)?
    TOO MANY OF US ARE WORRIED ABOUT HAVING A FRESH LINE-UP, A FRESH OUTFIT, HAVING THE PARKING LOT ON SMASH, BEING IN THE CLUB UP IN V.I.P. AND BUYING OUT THE BAR. EITHER THAT OR “TRYING” TO BE “HUSTLERS” & “GANGSTERS” – but I digress…..
    Basically, the stock market is a LONG-TERM investment, so people shouldn’t be worried so much about what’s going on with that today or this year. But, there are a couple of things you can do to be prepared – or to just generate some income. INSTEAD OF BUYING SOME NEW RIMS – put $5,000 in a CD instead. 6-month rates are just as high right now as 48-month (or more) rates. Go look at Bankrate.com. Don’t have 5G’s? $1,000 is jut fine, and some banks have online savings accts with little or no minimum. Mine (Washington Mutual) does.
    Let’s say you get $2,000 in your tax refund this year…(and let’s not forget, the IRS may be sending rebate checks out this year anyway, according to Bush)…take half and get a CD or open a money market account. Between now and then, take $25, $50, $100 out of your check and put it in your interest-bearing savings account or some other online account. JUST DO SOMETHING. ANYTHING.
    Did ya’ll hear about the dudes in NY who made $80,000 by stealing about 300 iPhones that were supposed to be shipped to Hong Kong? Do you know how they were busted? They spent most of the money in less than a week on new clothes, jewelry, sneakers, cars and quit their job at the same time. When their boss saw them with a bunch of new flashy stuff, he knew something was up.
    MORAL OF THE STORY – YOUR NEED TO SHINE ALL THE TIME CAN AND WILL BE YOUR DOWNFALL!! IDIOTS!!!!!!

  22. 22
    aqtpie says:

    Hate it or not, it DOES NOT apply to ALL black folks but, Sandra makes hella valid points.

    @istandbehindtheIam I just spoke on that after I left the grocery story this past Saturday. Thank GOD we only have to buy for two but, food prices have skyrocketed.

  23. 23
    istandbehindtheIam says:

    @dakotab

    Oprah had Dave Ramsey on last year, showcasing one of his books, it was literally a riches to rags story and back up again, where he pulled hisself out of excessive debt and how he trained his children on the respect of credit and money. Good read!

  24. 24
    terika83 says:

    Thanks for educating me on this Sandra. I am one of those black people who did not understand fully what came along with a “recession”, and I can admit that.

    You do hear a lot of talk about this lately though. I’m hoping it’s as mild as 2001′s was, cause honestly…like you said, I didn’t notice.

  25. 25
    fyrestarrter says:

    I personally believe that we have been in a recession since 2001. NOT that the last recession occurred in 2001! The mis-reported job loss (trust there have been SO many more people out of work than we are aware of because after a while they get discouraged & STOP LOOKING), the higher prices of petroleum, the sky-rocketing cost of food, rising utilities prices, & the ultimate cost of purchasing so many manufactured goods from China & Taiwan are KILLING our economy. Ironically enough W & **** “better not stand in front of me” Cheney & the Carlisle group along with all the PETROLEUM companies affiliated with them managed to make RECORD profits. From 2001-2007, THAT was the recession, NOW my people, we are headed for the DEPRESSION.

  26. 26
    istandbehindtheIam says:

    @aqtpie I mainly watch the prices of produce, here in Vegas, comparative pricing of a lb of tomatoes is anywhere from 2.89-2.99 and that price has not fluctuated, that’s year round. Of course, produce pricing is variable, ie seasonal items, weather affecting certain crops, etc.etc
    I’m 41 and lived through at least, 3 recessions, ’81 (the worst since the post depression era), 91-92 and the mild one in ’01. You have to be aware of what’s going on around you, like here businesses are shutting down left and right, why? because Vegas in the last 3-4 years has profited on this housing boom, contractors, brokers, agents, home improvement, landscapers, furniture retail, you name it anything associated with housing made profits but now, with subprime gone, tighter lending standards, low pool of buyers, foreclosures those same people are struggling now.

  27. 27
    PAHairston says:

    I found this website a few months ago and I must say, it can be very interesting and informative. As far as Sandra’s comments about the economy, she pretty much hit the nail on the head. Matter of fact, I’m a librarian and freelance writer living in our nation’s capital and I could not have put it more succinctly.

    FACT: Most black Americans, more than half, do not:
    Own a home
    Buy and trade stocks
    Have $5000 in the bank

    Today, many black folks, especially single, unmarried, uneducated, unemployed black women are choosing to have 3,4,5 babies by 3,4,5 different men. No wonder so many find themselves in a poverty cycle they just can’t seem to break.

    Me? I’m a 53 year old black woman who makes about $83,000 a year–no major investments, no major savings but I do own my own home, with one child a junior at Stanford (tuition: $45,000). Somehow, somewhere, I made some good choices that out-weighed the bad ones. We need to make more good choices in life. Peace.

  28. 28
    PANDERNPINK says:

    WOW.. I answered YES to EVERY question.. so This posting doesnt apply to me.. other than another black person sarcastically involing thought on other black ppl… about why they need to change themselves.. it is offending & to a certain degree its true… but not ONLY about black ppl.. bout ALL ppl in this nation…

  29. 29
    Sane and Clean says:

    ^^^Just because it may not apply to YOU it may apply to most of your PEOPLE so it does pertain to you.

  30. 30
    fyrestarrter says:

    I personally believe that this applies to MORE black people than NOT. I answered YES to every question but that was after I WOKE up a year ago & realised the direction I AND this country are headed in. But MOST of my peers (former & present) would unfortunately have to answer NO to these questions. I am sorry but I just cannot take offence with Sandra’s HONEST & however sad but TRUE statements.

  31. 31
    pinkvirgo says:

    Wow Sandra you are doing alot of generalizing in this post. Do you own a plot of land w/o a lien smh.That harsh and unnecessary. So Sandra I suppose all of those statements apply to you too,you are black right?

  32. 32
    istandbehindtheIam says:

    I think Sandra was being “tongue in cheek” more than anything. There’s more wealthy and financially savvy blacks living in America than you think, there just not media types or people that get a lot of face time.
    I like it when Sandra puts thought provoking posts before us, posts we can learn and do better, right? When you know better, you do better otherwise we have to continue read about real po’ ass n****s like Ronald Davis, the shooter in the Hovey Street murders. Amen.

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