You can tell what's happening nationally by simply looking at what's transpiring locally...For the past two weeks, something has been amiss with casual carpool and it finally became clear this morning. Not only has the line gotten longer, but the number of drivers has noticably decreased. The result, as with this morning, was a one hour commute door-to-door. But more importantly, it means that I've been getting in past 8am for work and that's not a good thing with early morning meetings. The explanation is simple--the price of gas. Given that the bay area has generally had higher fuel prices that the rest of the state, it's become clear the effect this is having on consumers. Couple that with the increase in the price of milk, other basics at Whole Foods or even Safeway, the cost of parking/taking Bart, and it serves as evidence the squeeze many are feeling.
My number finally arrived and I got into the car with the other 'poolers. We had a chatty driver and at some point the conversation turned to housing. He shared with us a story of his friend who was having trouble making the mortgage payment. His friend "John" had an interest only arm that was scheduleded to re-set at the end of the month. John worked with a mortgage broker who didn't properly explain what an I/O ARM was--the broker merely said that it was the type of mortgage John needed to get into his first home. The story didn't have a happy ending. John, like many folks these days, decided to walk away from the house and his mortgage payments all together.
We arrive in San Francisco, exit the car and go our separate ways. After logging onto the network and dialing into the conference call, my cell phone vibrates. Looks like mum was not able to convince Mamaji(uncle)about going to the Bollywood concert. Mamaji has been unemployed for over a year and the last thing he can afford to do is spend discretionary money on a concert--even if its Ash and Amitabh and Abishehk. I decide to take his place and of course, pay for the ticket.
Inflation, unemployment, the housing market, the credit crisis, call it what you will. At the end of the day, Bill Clinton said it best to the older Bush, "It's the Economy, Stupid."
