STOCK MARKET TUMBLING TODAY --
BUT WHAT DOES THAT MEAN
FOR YOU AT HOME?
LAUREN:
ERIKA ENGLE GOT ANSWERS FROM AN
EXPERT FOR A STORY THAT'S NEW AT
TEN.
ERIKA?
ERIKA:
RECESSION IS A SCARY WORD --
SO WE SPOKE WITH CARL BONHAM,
EXECUTIVE DIRECTOR OF THE U-H
ECONOMIC RESEARCH ORGANIZATION.
WE ASKED HIM HOW MOST OF US --
WHO LIVE
PAYCHECK-TO-PAYCHECK -- MIGHT BE
ABLE TO RECESSION-PROOF OUR
FINANCES.
BUYING THINGS IS FUN -- BUT
ECONOMISTS BELIEVE A RECESSION
IS COMING.
ACCORDING TO A NEW SURVEY FROM
CHARLES SCHWAB... NEARLY 60
PERCENT OF ADULTS LIVE
PAYCHECK TO PAYCHECK.
BONHAM SAYS A U-S RECESSION
COULD BE SIX MONTHS TO TWO YEARS
AWAY -- BUT THE SKY IS
NOT FALLING.
CARL BONHAM, PH.D., EXEC. DIR.,
UH ECONOMIC RESEARCH
ORGANIZATION: SO NO REASON TO
PANIC AT THIS POINT, BUT BE
PREPARED AS BEST AS
POSSIBLE.
CARL BONHAM, PH.D., EXEC. DIR.,
UH ECONOMIC RESEARCH
ORGANIZATION: YOU THINK ABOUT
THE BIGGEST RISK TO A HOUSEHOLD
WHEN A RECESSION DOES
ARRIVE, AND THAT IS LOSS OF
INCOME, LOSS OF JOB, RIGHT? AND
JOB SECURITY, OBVIOUSLY IS THE
BEST PLACE TO START. BUT IT'S
NOT ALWAYS POSSIBLE TO PREVENT
JOB LOSS -- OR A REDUCTION OF
YOUR WORK HOURS.
CARL BONHAM, PH.D., EXEC. DIR.,
ORGANIZATION: AND SO A KEY IS TO
NOT HAVE ACCUMULATED TOO MUCH
DEBT, RIGHT,
AND TO HAVE TRY AND HAVE YOUR
WITHIN REACH AND IN CONTROL.
AN EMPLOYED STUDENT, WITH HIS
OWN APARTMENT, REXFORD CAHILL
LEARNED THE IMPORTANCE OF
SAVING UP -- FROM A VERY LOW
POINT IN HIS YOUNG LIFE.
REXFORD CAHILL, EMPLOYED
STUDENT: "I WAS HOMELESS,
HAD TO LITERALLY LOSE EVERYTHING
FOR ME TO REALIZE THAT I
WAS MAKING MISTAKES. AND I CAME
BACK UP, I GOT A JOB, GOT AN
APARTMENT JOINED SCHOOL AND I
LEARNED THAT LIFE ISN'T FREE."
CAHILL BUYS AND RESELLS ITEMS
ONLINE FOR EXTRA CASH. ONLINE
SURVEYS AND WORKING AS A
SECRET SHOPPER CAN ALSO EARN
EXTRA MONEY. HIS ADVICE?
REXFORD CAHILL, EMPLOYED
STUDENT: EVERY PAYCHECK I GET, I
PUT HALF OF MY RENT AWAY IN MY
SAVINGS, BESIDES WHAT I NEED TO
SAVE, SO
THAT I HAVE TO NOT WORRY ABOUT
MY BILLS.
ERIKA:
WE CAN TAKE SOME COMFORT,
BECAUSE BONHAM SAYS WE'RE NOT
LOOKING AT A FALL-
OFF-THE-CLIFF SITUATION LIKE IN
2008 AND NINE ...
BUT WE COULD BE LOOKING AT AN
EXTENDED PERIOD OF SLOW GROWTH.
BACK TO YOU.
LAUREN:
HONOLULU POLICE AND
