Reply to: Guardian Doom

[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.

[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!

[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

[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 ?

[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.....

[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.

[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]

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]

Good news for anyone that has been planning major purchases in the last few months. Prices will contunie to fall so that used car, loft extension, new kitchen will be better value than ever before.

AKA those prudent who saved during the boom actuall CAN benefit somewhat in the bust if they have some intended spending to do.

As a first time buyer, I am hoping this market correction will help me in the long term, requiring significantly less mortgage borrowing if and when I take the plunge into home owndership.

I just pray rapnat inflation does not set in else I will have to reevaluate all my current assets, much of it currently in cash

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

[DimPrawn]

Good news for anyone that has been planning major purchases in the last few months. Prices will contunie to fall so that used car, loft extension, new kitchen will be better value than ever before.

AKA those prudent who saved during the boom actuall CAN benefit somewhat in the bust if they have some intended spending to do.

As a first time buyer, I am hoping this market correction will help me in the long term, requiring significantly less mortgage borrowing if and when I take the plunge into home owndership.

I just pray rapnat inflation does not set in else I will have to reevaluate all my current assets, much of it currently in cash

Rampant 70's inflation is round the corner.

[Solidec]

Good news for anyone that has been planning major purchases in the last few months. Prices will contunie to fall so that used car, loft extension, new kitchen will be better value than ever before.

AKA those prudent who saved during the boom actuall CAN benefit somewhat in the bust if they have some intended spending to do.

As a first time buyer, I am hoping this market correction will help me in the long term, requiring significantly less mortgage borrowing if and when I take the plunge into home owndership.

I just pray rapnat inflation does not set in else I will have to reevaluate all my current assets, much of it currently in cash

[Cyberman]

And to think some people are blaming Gordon Brown, when it is clearly a world phenomenon which had nothing to do with him.

[rootsnall]

And lots of you lot out there think you are in safe long term contracts especially in the now highly paid Euroland

Laughing at myself as I had a good 6 months work in the bag for 2009 that has now been pulled.

[Doggy Styles]

And to think some people are blaming Gordon Brown, when it is clearly a world phenomenon which had nothing to do with him.

[thelace]

But look on the bright side, though we may have lost all of those highly paid, engineering, skilled and semi skilled jobs, the supermarkets are openning up more branches and require an extra 10,000 shelf stackers and checkout assistants