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How Does the Financial Crisis Affect Me?

Three Ways the Wall Street Crisis Affects You

Sorting through the news lately has been an emotional, stressful experience that has everyone worked up. While it's important to understand how things came to be and the who's who of what's happening now, it's just as worthwhile (and maybe more so) to know how the Wall Street mess affects you and me. Here are some points to consider when trying to make sense of the various moving pieces.

  1. Employment: Hiring has slowed and employers are cutting back — employers that are hiring are holding more rounds of interviews and being more selective. Layoffs lead to a decrease in consumer spending, which can cause businesses to cut back even more, and so on. If you have a job, it may be more difficult to get a raise because your employer feels the pinch of a weakened economy.

Discover how borrowing and cash are affected when you


  1. Borrowing: Lending standards have been elevated for everything from auto loans to business loans. Credit card companies are reducing limits on some cards because they can't afford a customer who may not be able to pay their bill, and lenders are lowering limits on existing home equity lines. Mortgage approval has become more difficult, especially for those without stellar credit, and you'll definitely need a down payment.
  2. Cash: Even if you don't have investments that have been sloshed by the market, there are issues with keeping your money in cash. It's still the safest thing out there, but if the government keeps printing money like it's going out of style, your savings will essentially lose money because of inflation.


baybug baybug 9 years
I have noticed that there are many more second interviews required. Usually to find out if the rest of the office will like. It is tough out there.
christie christie 9 years
I am definitely feeling that first one. I have sent at least 25 applications/inquiries and only three call backs. It's frustrating.
cubadog cubadog 9 years
I have really moved if I do not have the cash I do not buy it mentality. I have a job thank god but I am looking. I am being very careful about who I am willing to even interview with, definitely doing my research about each company to make sure that they are doing OK.
ilanac13 ilanac13 9 years
i think that all these tips are reasonable however they don't make me feel any better about things. i think that especially here in NYC when SOO MANY people are now without a job, it's kind of a scary thing. i know that i should consider myself to be lucky that i have one and i'm loving where i work, but sometimes like all people, you consider moving to a new place and it's just hard to know that it's going to be a longer more drawn out process since the market is softer. as for loans and cash etc...i think that it's just common sense these days - and it's part of the reason that i haven't really believed in credit cards or spending out side of my means. if i can't afford to pay cash for something, then i don't usually get it, and i guess that i'm really happy that i have my car lease right now since i'm not sure that i'd be able to get one otherwise...although i'm making good money and all that.
eeliabethc eeliabethc 9 years
I just had a (second round) job interview cancelled because of "financial difficulties" in the firm and it can't afford another employee. I was annoyed, but what can you do? Everyone's tightening their costs right now.
bellaressa bellaressa 9 years
The employment rounds of interviews has been going on for about 3 years. About a year ago, I went on 4 rounds of interview before I not selected to move on to 5. This company had 5 rounds at one office and then two at the corporate headquarters where they fly you to. Most jobs are moving past 2 interviews.
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