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tfunk
Joined: 12 Aug 2006
Location: Dublin, Ireland
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 Posted: Wed Oct 01, 2008 6:00 am Post subject: The economic doom - is it real? |
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If I had never picked up a newspaper or read stuff online I wouldn't have noticed all the forecasts of doom and gloom. It makes me feel bad though of when I read the newspapers, yet I don't notice any difference in my living style...I still spend money like I've always done.
Part of the reason I don't like this whole business is because I don't have any critical ability to tell what is BS and what is worthy of concern/action. It feels like I'm on a landslide. I wish I knew more. |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Wed Oct 01, 2008 6:06 am Post subject: Re: The economic doom - is it real? |
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| tfunk wrote: |
| I still spend money like I've always done. |
Well, you shouldn't. It probably won't be a total catastrophe but the possibility exists. It might be smart to sharply contract your discretionary spending and start hording cash. |
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tfunk
Joined: 12 Aug 2006
Location: Dublin, Ireland
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| Posted: Wed Oct 01, 2008 6:30 am Post subject: Re: The economic doom - is it real? |
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| mises wrote: |
| tfunk wrote: |
| I still spend money like I've always done. |
Well, you shouldn't. It probably won't be a total catastrophe but the possibility exists. It might be smart to sharply contract your discretionary spending and start hording cash. |
But if money loses value isn't it a better idea to buy things while it still has value? If I've saved 10,000,000 Won and tomorrow money becomes worth a lot less, wouldn't I have gotten more value from my money if I'd spent it when it was worth more? |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Wed Oct 01, 2008 6:34 am Post subject: |
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| Well, if you mean that you are afraid of hyperinflation then you'd be best to buy another store of value. But if you are suggesting that you blow your disposable income at a time when the economy of the country in which you reside is set to melt-down into severe recession, I'd say no. Save as much as you can. |
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Wed Oct 01, 2008 7:10 am Post subject: |
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Let me put it this way:
I usually buy myself a box of books on Amazon for Christmas. Since the Won is tanking lately, I went to Bandi & Luni yesterday and spent W100,000 so I'd have some books for the short-term. If things pick up, I'm no worse off. If things get worse, well, I can re-read something if I have to. |
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Juregen
Joined: 30 May 2006
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| Posted: Wed Oct 01, 2008 2:48 pm Post subject: Re: The economic doom - is it real? |
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| mises wrote: |
| tfunk wrote: |
| I still spend money like I've always done. |
Well, you shouldn't. It probably won't be a total catastrophe but the possibility exists. It might be smart to sharply contract your discretionary spending and start hording cash. |
If everybody does that, then you have an economic crisis.
In today's world economics money has to flow, that is why they are pumping money into the banks to keep liquidity high.
Liquidity is an accelerator of economic development. |
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IncognitoHFX
Joined: 06 May 2007
Location: Yeongtong, Suwon
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| Posted: Wed Oct 01, 2008 3:33 pm Post subject: Re: The economic doom - is it real? |
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| Juregen wrote: |
Liquidity is an accelerator of economic development. |
...and bowel movements. |
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tfunk
Joined: 12 Aug 2006
Location: Dublin, Ireland
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| Posted: Wed Oct 01, 2008 4:00 pm Post subject: Re: The economic doom - is it real? |
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| Juregen wrote: |
| mises wrote: |
| tfunk wrote: |
| I still spend money like I've always done. |
Well, you shouldn't. It probably won't be a total catastrophe but the possibility exists. It might be smart to sharply contract your discretionary spending and start hording cash. |
If everybody does that, then you have an economic crisis.
In today's world economics money has to flow, that is why they are pumping money into the banks to keep liquidity high.
Liquidity is an accelerator of economic development. |
That's why the stories of doom might be self-fulfilling. The media can either jack up peoples fear and sell more newspapers or present a restrained and reasonable coverage of the economic situation. If there is an economic crisis then the media is in no small part a precipitator of it. |
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PeteJB
Joined: 06 Jul 2007
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| Posted: Wed Oct 01, 2008 4:59 pm Post subject: |
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| Why must an economy always be improving? For once, let's see how it goes with the economy going in reverse for a while. Success only comes from understanding failure, after all. |
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IncognitoHFX
Joined: 06 May 2007
Location: Yeongtong, Suwon
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| Posted: Wed Oct 01, 2008 5:48 pm Post subject: |
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| PeteJB wrote: |
| Why must an economy always be improving? For once, let's see how it goes with the economy going in reverse for a while. Success only comes from understanding failure, after all. |
People will starve... but maybe that will learn them for being so greedy.
The general American population is the greediest of all. No one is entitled to their gun, or their SUV. It's rabid, unfettered consumerism that has made them think this way and now they're paying the price. |
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xingyiman
Joined: 12 Jan 2006
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| Posted: Wed Oct 01, 2008 5:56 pm Post subject: |
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| So everbody who has been rubbing their "success" in everyone elses faces is going to be strapped for cash. Big deal. Even on half my salary I would still be making more than I was back in the US. |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Wed Oct 01, 2008 7:27 pm Post subject: Re: The economic doom - is it real? |
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| Juregen wrote: |
| mises wrote: |
| tfunk wrote: |
| I still spend money like I've always done. |
Well, you shouldn't. It probably won't be a total catastrophe but the possibility exists. It might be smart to sharply contract your discretionary spending and start hording cash. |
If everybody does that, then you have an economic crisis. |
The guy is an English teacher, not hedge fund manager. His removed consumption will have zero effect on the economy. He needs to watch out for himself and in this situation that means a total end of discretionary spending, a chosen lessened standard of living and strong focus on savings.
Sure, if we all saved it would be bad. But we've all been spending Chinese money, and that has been worse. Time for a big unwind. |
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