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Mar 18, 2008 9:09 pm US/Eastern
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Local Families Cope With Rising Prices
PITTSBURGH (KDKA) ―
The near-collapse of the Bears Stearns was bad news for National City. Its stock price plunged more than 40 percent yesterday, the worst drop in 24 years.
The poor economy has many people scaling back plans, rethinking purchases and more.
A senior economist at PNC said he believes we are bottoming out in the current economic slowdown and better days are ahead. This is comforting unless you have to pay for groceries tonight or fill up the gas tank tomorrow.
With gasoline and oil prices leading the way, the incision into our economic lives crosses all economic borders.
"With a family of five, total, somethings we do have to say no to because we don't have as much as we did," consumer Randy Lasher said.
"Really, you have to cut back on everything. You have to cut back on your gas, on your food, just everything to try to make everything meet each other," consumer Rick Gatto said.
Debbie Morgan's paycheck is going to one place these days.
"It doesn't go as far, no, the whole paycheck goes just for gas," Morgan said.
But the impact of the mortgage crisis and the shrinking dollar is cutting through all sections of the economy as we circle our economic wagons, and stop spending money on certain things.
"Those big ticket items like new car purchases, and also anything related to the home, home appliances, furniture, even some electronics - things they don't absolutely need to purchase right away," said PNC Senior Economist Robert Dye.
Car dealers, realtors, and retailers feel a lessening of demand, all so we can keep our cars moving and a roof over our heads.
"Energy and the rise in energy expenses are becoming one of the single biggest factors in the northeastern United States for plant closures, for layoffs for deferrals in investments programs for outsourcing employment both to other countries and to other parts of the United States and as this situation gets worse so do the employment prospects," Dr. Kent Moors, an oil expert and Duquesne University professor, said.
While clinging to a stagnant paycheck, Debbie Morgan finds herself getting creative.
"That's why I raise chickens and turkeys and rabbits to try and make ends meet," Morgan said.
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