Anyone putting off booking a cruise until the Sept financial crisis settles?

[greatam]

I am feeling the credit crunch with my customers. Most have always paid in 30 days. Now, some of bigger companies (ethnic foods-you can guess who they are) are starting to pay 45-60 days after invoice. I had a long talk with a large customer who is currently 54 days behind. He can't get the money to stock inventory, so he has much less product to sell. And HIS customers are getting behind. A vicious circle.

 

I have always banked on the food business to sustain us through the worst of times. The current cycle MAY make me rethink that philosophy.

 

I have a lot of international business travel booked for the next 8 months. Was going to cruise between business trips. If this situation continues, I will just take a few extra days each business trip for fun and be satisfied this year. I have always looked at my business travel as one big vacation, anyhow.

[1tuckersmom]

We are not giving up on cruising, have two booked for 2009, and am ready to book one for 2010.

 

Having said that I am however second guessing a land trip to Italy in May `09.

 

The deposit is made and paid (no CC) but gosh the final amount is just more than I feel safe to spend right now.

 

My DH draws three retirement checks, yes he retired from 3 jobs and I have two, still not comfy spending that kind of money.:(

[cruiserbryce]

we're not really waiting only b/c the ones we are looking at are so far out that we could always cxl if necassary. Just recently got a great deal on X Equinox...$1149 pp for a 10 day cruise in a balcony cabin for Dec 09...

[cruiselover57]

I had so much fun on my Grand British Isles cruise this past June my wife and I were thinking of booking a Princess European cruise for May/June 2009. But let's face it, if it weren't for bad news these days there'd be no news at all.

 

At this point, we have delayed booking until we see if our retirement savings are going down the stock market and bankers toilets. :eek:

 

Are we the only ones delaying travel plans until this mess is over?

 

Haven't booked anything yet for 2009. Waiting it out until 10/15 - I can earn triple points on my credit card if I book a cruise! Just waiting to see what the deals will be!

[Nebr.cruiser]

This just cracks me up and drives me nuts. The economy is getting worse because the media is freaking everyone out so they stop spending money so the economy gets worse. We own our own business and we are seeing the crunch. However its not because people lost their jobs and can't afford it, its because people are AFRAID because the watch the NEWS whose job is to have the best story so people watch. Then they cancel or downgrade their orders with us because of FEAR! The people making money are the media! ARGH!!!!

 

We are still cruising!!!!!

 

 

I agree completely! The media hysteria about almost everything--not just the economy--makes it almost impossible to figure out the real truth. The constant talk, talk, talking and hype, hype hype gets to all of us and turns normal ups and downs into something else again.

 

And we are going to keep cruising. I might stop watching TV news and market shows though.

[pris993]

No we will not stop cruising - as long as we have our health!

 

We leave on 10/21 for 10 days to Mexico. We are booked for a 16 day TA in April and a 13 day Mediterranean in October 2009. We are waiting for the 2010 European offerrings.

 

We take the long view on investments, even though we are already retired.

 

We might tighten our belt on other expenses if we need to but not our cruising budget. We have been living debt free for a long time. We sleep well that way. :)

 

We are going through some trying times, we have faith in our country. We can get through this, we have done it before.

[j in tx]

Note to bjkTX--you are 100% right!

[MadManOfBethesda]

Comparing the 1929 crash to today's drop is apples and oranges. It was far, far worse then in many ways. Today we had a 7% drop..then there was a 40% drop.

 

Kitty, you (and many others) are missing the big picture. Although the stock market drop yesterday was an interesting sidenote, the main problem is in the credit markets not the equities markets.

 

Banks have stopped lending to each other because they are afraid that they will need to have the cash on hand. And if they have stopped lending to each other, they are sure not going to be lending money to businesses, many of whom rely on short-term credit to make payroll. If they can't get credit, they will have to start laying off workers.

 

Another example of the credit market freezing up is the fact that the LIBOR jumped 4% overnight to 6 7/8% . (LIBOR is the rate many banks use to charge interest when lending money to each other.) Many people have ARMs that are tied to LIBOR. That means that all those people whose mortages reset tomorrow, October 1, are going to be paying $1000s extra on their mortage payments beginning in November for at least one year.

 

So you see, this isn't just a stock market issue. Even if the stock prices rebound today, that won't help the credit market unless there is an indication that Congress will try again to pass the bill.

[momofmeg]

Why is it that nobody realizes that every time you choose not to spend because of fear YOU make the economy worse!!! What to support a strong economy? Spend your money!

 

Candice

 

I spend plenty-just not on credit. Unfortunately most of the good ole USA spends on credit and now they are finding their credit it drying up.

 

There is nothing wrong with if you have it, spending it. We enjoy nice restuarnants, we eat out several times a week, and we always tip 20%. But you know, we also like omelets at Wafflehouse and sometimes we will go there for a weekend breakfast. The little gal who usually waits on us, thanked us for still tipping her, she said most did not anymore. That is SAD! My hubby and I can both eat there for $15 or less, why would a person NOT tip the extra $3? Lord they could cook the meal at home for $5, if money was THAT tight.

I would rather those people whose budget is THAT tight, NOT spend. Especially when it means they stiff others.

[sjcruiser]

The financial situation didnt just start and won't be over any time soon. Was the country in a recession when I booked my cruise for this year, yes. Will it be in a recession when I book my cruise for next year, yes. Will that stop me from cruising or going on a vacation or doing what I want, No. Life goes on and if you wait for this thing to be over, you'll be waiting a while.

[Fredr]

Hello,

 

I hope that every one reads Bethesda's analysis because it is exactly right. It is the credit markets that need our help, not because of a "bailout" which is not, but to save the entire US economy.

 

Cruise ship building is going to come to a grinding halt, because no commercial bank will either have the funds to lend or will want a "sure" return probably making loans too expensive for cruise ship lines. Even as big as Carnival Corporation is, they use the credit markets just like other companies. And cruising may well become very expensive or watered down to unacceptable levels in terms of food and servce for the major cruise lines.

 

And while my wife and I will continue to go on cruises because we are in very favorable financial circumstances I would never compare my situation with others. Yes, there are too many who live beyond their means but there are also millions of people who for no fault of their own, find themselves in situations not of their making. The best exampe of this are the thousands of American workers both blue and white collar, who lost their jobs when companies went overseas.

 

Fred

[momofmeg]

Hello,

 

 

And while my wife and I will continue to go on cruises because we are in very favorable financial circumstances I would never compare my situation with others. Yes, there are too many who live beyond their means but there are also millions of people who for no fault of their own, find themselves in situations not of their making. The best exampe of this are the thousands of American workers both blue and white collar, who lost their jobs when companies went overseas.

 

Fred

 

Fred, that is my husband and I-we will also continue to cruise as long as we can pay for the crusie and not put it on credit. Unfortunately, as youput it, many are sufferign who did evrything as they should. They did not buy luxuries until they could afford them-and now they see their savings going down the tube-either because they lost their job and they must live off their savings-or because their 401K has become worthless-so they no longer have the savings for luxuries such as crusing.

 

Remember the story of one of the Enron couples who lost half a million dollars in their 401K? They were in their late fifties and ehld blue coolar jobs in the company and had been planning to retire at 62-instead-as the husband put it-they would have to continue to work until the day they died.

 

That is my fear- I am afraid many more of us will find ourselves in that very situation. Even some of us "white collar" people.

[IDKaren]

Thank you for your input..Puts alot in perspective. I think the "average" American (me:confused: ) really does not understand it all. All I think about is WHAT is going to happen to MY stock market investments and all the rest is SO over my head. Thank you for a very precise and interesting explanation.

 

 

 

quote=MadManOfBethesda;16463092]Kitty, you (and many others) are missing the big picture. Although the stock market drop yesterday was an interesting sidenote, the main problem is in the credit markets not the equities markets.

 

Banks have stopped lending to each other because they are afraid that they will need to have the cash on hand. And if they have stopped lending to each other, they are sure not going to be lending money to businesses, many of whom rely on short-term credit to make payroll. If they can't get credit, they will have to start laying off workers.

 

Another example of the credit market freezing up is the fact that the LIBOR jumped 4% overnight to 6 7/8% . (LIBOR is the rate many banks use to charge interest when lending money to each other.) Many people have ARMs that are tied to LIBOR. That means that all those people whose mortages reset tomorrow, October 1, are going to be paying $1000s extra on their mortage payments beginning in November for at least one year.

 

So you see, this isn't just a stock market issue. Even if the stock prices rebound today, that won't help the credit market unless there is an indication that Congress will try again to pass the bill.

[greatam]

 

Banks have stopped lending to each other because they are afraid that they will need to have the cash on hand. And if they have stopped lending to each other, they are sure not going to be lending money to businesses, many of whom rely on short-term credit to make payroll. If they can't get credit, they will have to start laying off workers.

 

 

EXACTLY correct.

 

My customers are having a hard time with their lines of credit. Some lines have been cut back, some have been cut off completely. So how do they continue in business when they cannot get money to buy product to sell???

 

It has been all over the national news and an easy example to understand the basis of the problem. Bill Heard Chevrolet, one of the largest Chevy dealers in the nation, shut down all of his dealerships. Why???-floor financing-the money he had used VERY successfully for many many years dried up. Floor financing is money generally loaned by the financing arm of the manufacturer or banks to dealers for stock in the parking lot. Dealers need large amounts of DIFFERENT cars to sell any volume. With floor financing, it was easy. Manufacturers/banks essentially loaned the dealer money to purchase the cars for stock on the lot.

 

When the money for floor financing dried up, dealerships were left with what they could finance out of their pockets. You want a red car but the dealer only has blue, you go elsewhere. You want an Avalanche, but the dealer only has Hummers, you again go elsewhere. And in a short period of time, the dealer is bankrupt. Has nothing to do with the stock market.

 

Bad mortgages are on the books of many banks. Banks MUST hold a certain percentage of deposits to cover all loans. BECAUSE of all the BAD mortgages, banks are not getting payments which they in turn will roll over into new loans for houses, business, etc.The government will buy up the bad mortgages, which in turn will put fresh capital in the banks (the same as if the loans had been repaid) and banks will have money to loan again.

 

As posted previously, lending is the true crux of the crises. The stock market dropped BECAUSE there is no money to loan to expand businesses, pay payroll and buy products.

 

Sad situation and may impact a LOT of people if SOMETHING isn't done.. The impact will be felt by many more than just those with 401K's and money in the market.

[Sonyac]

I am glad I don't live in America right now.

 

I have only my mortgage and the car payments finish in April. Things for my family are all ok, no worries. Even with issues such as the financial crisis going on, everything is swimming for us.

 

I get to take my first vacation since my honeymoon (7 years ago) and am going to enjoy it 100%.

 

I live within my means and life is good, the sun is shining and I'm not dead.

 

Sonya

[Fredr]

Sonya,

 

Australia has had its problems as well. I read that a huge percentage of Australia's farms have not made any money for several years. And it seems that Australia has problems with fires.

 

And please remember Australia is a very small country compared to the united States in terms of population. Australia is a wonderful and very impressive country and hopefully I will visit again (was in Oz in 1993) soon.

 

Fred

[Jade13]

Another example of the credit market freezing up is the fact that the LIBOR jumped 4% overnight to 6 7/8% . (LIBOR is the rate many banks use to charge interest when lending money to each other.) Many people have ARMs that are tied to LIBOR. That means that all those people whose mortages reset tomorrow, October 1, are going to be paying $1000s extra on their mortage payments beginning in November for at least one year.

 

 

Aren't most ARMs (in the US) tied to the treasury bill? I know someone whose bank offered to reset their loan for 5 years for about 5.7% They declined because if it reset on its own that day it would be 4.5% (their current rate). So, I thought most mortgage rates were actually going down, no?

[bjkTX]

I am glad I don't live in America right now.

 

 

Sonya

 

Don't believe everything you read in the papers or see on TV. It isn't the best of times for some people, but the sky certainly isn't falling over the entire country!

 

Fires or not - I'd still love to visit Australia and do what I could to support the economy for a few days :-)