Guardian Doom

[Solidec]

If you lose your job the last thing you'll be thinking about is a new kitchen or a loft extension !!

Lot of people run their own business, and are in no danger of "losing their job"

Whilst disposable income may be down, it may not necessary fall anywhere near as much as prices.

If you lose 10% disposable income but prices for stuff drops 40% you see where I am going?

[Cyberman]

Lot of people run their own business, and are in no danger of "losing their job"

Whilst disposable income may be down, it may not necessary fall anywhere near as much as prices.

If you lose 10% disposable income but prices for stuff drops 40% you see where I am going?

losing their job = not having a contract..... money then eventually runs out.... you will see !!

[Solidec]

losing their job = not having a contract..... money then eventually runs out.... you will see !!

I am not talking about the large majority of the populous, but for some this recession is nowhere near as bad as for most.

If you have fixed cost outgoings and plenty of money in reserve, then low prices on goods is a benefit.

If you were sitting on large pots of cash before the "downturn" and had plans for capital expenditure, then now is a good a time as any. Lower prices on goods combined with lower returns on savings mean its a double gain really.

Spending now means not having to spend tomorrow, and if when tomorrow comes your savings are earning better interest again, well, win win.

Consider this:

Pre/Post crunch: £100,000 savings earning 6% pa. Cost of new kitchen and Bathroom = £20,000. net position after interest and expenditure = £84800

Mid Crunch: £100,000 savings earning 2% pa. Cost of new Kitchen and Bathroom = £14000. net position after interest and expenditure = £87,720

About a £3000 opportunity cost.

[DimPrawn]

I am not talking about the large majority of the populous, but for some this recession is nowhere near as bad as for most.

If you have fixed cost outgoings and plenty of money in reserve, then low prices on goods is a benefit.

If you were sitting on large pots of cash before the "downturn" and had plans for capital expenditure, then now is a good a time as any. Lower prices on goods combined with lower returns on savings mean its a double gain really.

Spending now means not having to spend tomorrow, and if when tomorrow comes your savings are earning better interest again, well, win win.

Consider this:

Pre/Post crunch: £100,000 savings earning 6% pa. Cost of new kitchen and Bathroom = £20,000. net position after interest and expenditure = £84800

Mid Crunch: £100,000 savings earning 2% pa. Cost of new Kitchen and Bathroom = £14000. net position after interest and expenditure = £87,720

About a £3000 opportunity cost.

Blimey! It's almost as if the interest rate cuts are there to make saving pointless and get everyone spending like mad.....

[Cyberman]

I am not talking about the large majority of the populous, but for some this recession is nowhere near as bad as for most.

If you have fixed cost outgoings and plenty of money in reserve, then low prices on goods is a benefit.

If you were sitting on large pots of cash before the "downturn" and had plans for capital expenditure, then now is a good a time as any. Lower prices on goods combined with lower returns on savings mean its a double gain really.

Spending now means not having to spend tomorrow, and if when tomorrow comes your savings are earning better interest again, well, win win.

Consider this:

Pre/Post crunch: £100,000 savings earning 6% pa. Cost of new kitchen and Bathroom = £20,000. net position after interest and expenditure = £84800

Mid Crunch: £100,000 savings earning 2% pa. Cost of new Kitchen and Bathroom = £14000. net position after interest and expenditure = £87,720

About a £3000 opportunity cost.

You need to get into the real world. People are not spending because they can envisage themselves out of work within a few months, be they permanent or temporary staff. They know that things are going to get much worse before they get better, so any money in reserve will stay in reserve.

It's a shame that Gordon did not build up such a reserve for UK PLC !! Are you Gordon Brown by any chance ?

[Solidec]

Blimey! It's almost as if the interest rate cuts are there to make saving pointless and get everyone spending like mad.....

Yes its all rather wank at present.

Very few areas to stick your savings to earn respecatble returns.

cash: fuxxed
shares: fuxxed
govt bonds/gilts: fuxxed
commodities: fuxxed
carry trade: fuxxed (hmm, any strong currencies left in the world with good central bank rates?)

All planned of course, all in the name of McKeynesianismismsismsismaskslzkfzsgb,jsjdk.a

[Solidec]

You need to get into the real world. People are not spending because they can envisage themselves out of work within a few months, be they permanent or temporary staff. They know that things are going to get much worse before they get better, so any money in reserve will stay in reserve.

It's a shame that Gordon did not build up such a reserve for UK PLC !! Are you Gordon Brown by any chance ?

It's a shame you consistently fail to read my posts properly. I said SOME. you are being very naieve if you think EVERYONE is fuxxed by this recession and has ZERO disposable money to spend. If that were the case ALL the (non essentials) shops would be in administration!

[Cyberman]

It's a shame you consistently fail to read my posts properly. I said SOME. you are being very naieve if you think EVERYONE is fuxxed by this recession and has ZERO disposable money to spend. If that were the case ALL the (non essentials) shops would be in administration!

Of course a reckless few may spend, but we are talking about a very small minority. That will not be enough to get the economy out of the deep doodoo.