1
   

RECESSION ? DEFLATION ? HYPER-INFLATION ?

 
 
Reply Wed 22 Oct, 2008 05:48 pm
so what is "joe , the plumber/saleswoman , teacher ... " going to do if there is a little many left over after paying for the mortgage/ rent , food , transportation ?

where to invest it ?

there is (talk of ) a recession , deflation and even hyper-inflation competing for the attention of the small investor .
we took some of our money and bought a new car after the old one started giving us trouble after nine years of service ( the old one was an oldsmobile intrigue , the new one is a honda accord ) .
we actually paid quite a bit less for the honda than we paid for the olds nine years ago - and the honda uses less gasoline !
perhaps we should look carefully at some home-improvements that would enhance the resale value of the house .
some 30 years ago we put some money into home upgrades that have served us well . canada's economy was in a slump at that time and there was high unemployment . a plumber friend charged us $10 an hour for plumbing work (second bathroom) and only $7 for non-plumbing work (putting in a rec-room) .
we'll see what the situation is next spring . perhaps there may (or may NOT !) be some money left over in the kitty .
hbg

and here is part of the article that talks about : recession , deflation and hyper-inflation - all in one breath . an articele in a respected german newspaper made me look for it in canada's Globe & Mail .

http://www.theglobeandmail.com/servlet/story/RTGAM.20081021.wreynolds1022/BNStory/robColumnsBlogs/


Quote:
What's happening? Recessions are deflationary. In deflationary environments, cash is the one asset that must increase in value " since the price of other assets must fall against it. Deflation is usually defined as a decline in prices caused by a reduction in either the supply of money or in the supply of credit. On the one hand, the world is awash in money. On the other hand, it is effectively bereft of credit.

Long-term forecasts of U.S. hyper-inflation may prove correct. As Warren Buffett observed the other day, the U.S. dollar makes a terrible long-term investment. (A very patient investor who held a dollar bill for the past 100 years would now have an investment worth 5 cents.) But this is also true for other printed currencies. The credit crunch crises nevertheless show that there's still something special about the greenback in times of trouble. It is surely instructive that Mr. Buffett held on to U.S. dollars in his personal portfolio " at any rate, until he sold U.S. dollars last week to buy U.S. equities.
  • Topic Stats
  • Top Replies
  • Link to this Topic
Type: Discussion • Score: 1 • Views: 1,950 • Replies: 5
No top replies

 
Merry Andrew
 
  1  
Reply Wed 22 Oct, 2008 05:53 pm
@hamburger,
Don't use words like 'recession' and 'depression', hbg. Just call it a 'reverse upward trend.' Smile
hamburger
 
  1  
Reply Wed 22 Oct, 2008 07:13 pm
@Merry Andrew,
m.a. wrote :

Quote:
Don't use words like 'recession' and 'depression', hbg. Just call it a 'reverse upward trend.'


i've tried that in the past and landed right upon my "reverse front " .
hbg Wink
0 Replies
 
patiodog
 
  1  
Reply Wed 22 Oct, 2008 07:48 pm
Interesting thoughts there regarding the potential availability of cheap skilled labor. We'd planned on adding a second bathroom to this house when we moved in -- to increase resale value and to gain some quick equity, as well as, you know, to use -- but had put that on hold. Probably won't have any disposable income this year due to lost bonuses when the wife's firm folded (fortunate that her office was able to defect to another firm), but next year there might be something available.

(Assuming the non-profit I work for doesn't lay me off...)

Mightn't increased cost of materials offset savings on labor, though?
hamburger
 
  1  
Reply Wed 22 Oct, 2008 08:39 pm
@patiodog,
patiodog :

i'm assuming that lumber prices (and other building material prices) will have to come down . since house-building is way down , lumberyards must be overstocked , i'd think .
isn't the whole building business somewhat in the same doghouse as the automobile business ?
haven't checked it out lately , but can't see prices rising while construction business is down ???
even with prices coming down , i wouldn't want to relive the kind of downturn we had 30 years ago . even university graduates couldn't find a job - it was NOT a good time for canada (even though we personally got some bargains) .
hbg
patiodog
 
  1  
Reply Wed 22 Oct, 2008 08:43 pm
@hamburger,
Stands to reason. I've heard that there's been an uptick in the cost of wiring in my locale lately, but perhaps this is just local or is product specific. I'd unthinkingly taken it as a broader indicator.
0 Replies
 
 

Related Topics

Where is the US economy headed? - Discussion by au1929
The States Need Help - Discussion by Robert Gentel
Fiscal Cliff - Question by JPB
Let GM go Bankrupt - Discussion by Woiyo9
Sovereign debt - Question by JohnJD
 
  1. Forums
  2. » RECESSION ? DEFLATION ? HYPER-INFLATION ?
Copyright © 2019 MadLab, LLC :: Terms of Service :: Privacy Policy :: Page generated in 0.05 seconds on 11/19/2019 at 11:56:56