does any of this Recession talk scare you?
- Thread starter Tony
- Start date
High fuel prices
Demand for ethanol (driving up produce costs and anything that uses corn)
Mortgage crisis
Those are what pop into my head 1st.
So the mortgage crises means the lenders are not getting paid
High cost of fuel and ethanol products means people are spending less on other things.
So you?re saying stocks & house prices are falling, so people can afford them again?
And the government is sending out checks so people can afford to buy some stuff?
They are falling because people ain't willing to buy them now AND people can't get qualified for mortgages with bad credit like they were during the sub-prime boom.
Gov't checks won't help people afford much... but it will make people THINK they can afford stuff and they will spend (so the gov't hopes).
Gov't checks won't help people afford much... but it will make people THINK they can afford stuff and they will spend (so the gov't hopes).
so in other words price, has nothing to do with worth or value?
the price of something is solely determined by what people are willing to pay?
Is that why the same new electronic gadget that comes out today, cost alot less a year later?
Is this why all new cars depricate atleast 35% in 2 years?
Who really wins when prices are high?
And these checks being given out in hopes to be given right back to who?
who's missing their money lately?
who is the economy?
the price of something is solely determined by what people are willing to pay?
Is that why the same new electronic gadget that comes out today, cost alot less a year later?
Is this why all new cars depricate atleast 35% in 2 years?
Who really wins when prices are high?
And these checks being given out in hopes to be given right back to who?
who's missing their money lately?
who is the economy?
Olde Hornet
Well-Known Member
Tony - basic economics - Supply and demand. Seems like you understand more than you think.
The key thing to remember is:
During really good times SAVE! SAVE! SAVE!
During bad times - thats when you acquire you assets.
so is this a bad time to sell some property?
Olde Hornet
Well-Known Member
Yes, its a buyers market right now. Some markets are in worst shape than others, i.e. California and Florida.
?????
Olde Hornet
Well-Known Member
First understand, the checks are psychological on one part and an attempt at real stimulus on the other hand. There are some serious arguments about whether the government should intervene at all, but to long of an argument to have here.
To answer your question - It would be VERY DIFFICULT for the government to "lower" gas prices. Its not something thats done in a "free / open" market economy, additionally it could cause other problems in the economy and the stock market. America has become a consumer led economy, and by giving checks they hope to get people spending money.
If they really want the money spent, they would give it to the working poor through the lower middle income brackets. In reality, most of the people that I work with will save their checks.
All the gov't can do about that is lower the taxes on the gas. We get most of our oil from OPEC and the U.S. gov't has nothing to do with the way they decide on the amount of oil released to the open market (officially).
You are right.
Most of the upper income people I know are talking about saving the money.
All the lower income people say they have already spent the the money.
Thank you for you responses.
Now can you help me make sense of this
Every tax season, usually before I even receive a W2
I see lower income people getting
4- 10k back in taxes, And less than 30 days later, they?re broke again.
Then 11 month later they receive the same 4-10k again, but they?re
Habitual broke-ness, and quality of life never changes.
WHY???
SO OPEC has the US by the balls?
Or just us? we all must suffer for the few billionaire oil executives
in the US????
It is a mindset. "Spend it if you got it." Go get them rims, those Plasmas/LCDs for the 1BR apt, that grill, those J's, etc.
But wouldn't you want to;
leave that crumby neighborhood?
get out ya moms back room?
use the money to generate more money like, buy a vending machine or start a business?
Well we COULD decide to open up oil reserves in the U. S. and also allow more drilling in the gulf and Alaska and POSSIBLY reduce our dependence on OPEC... but that ain't happening any time soon.
why won't this happen?
Yep. But some folk are just comfortable.
So do you think that the old adage of growing up, moving out,
buying your own house has died?
Environmentalists, relationships with OPEC countries, etc.
JaguarNation99
That's Dr. JN99 to you...
That's not exactly accurate. A recession is two or more successive quarters of negative economic growth (measured by GDP), not just slower or lessened economic activity. Right now we have slowed economic activity, but not negative growth, at least not yet.
As far as your question about selling property, that depends on your area, as real estate is an extremely local business. What is happening with real estate in Nashville, for example, has little to do with real estate in Dallas. Markets vary greatly even in the same city or metro area. While most places are having tough times in real estate, there are markets, like Charlotte and Seattle for example, where real estate is still booming. You would have to evaluate your indivual market to decide.