Well, in these crazy times where job losses and potential job losses have everyone nervous and checking their spending actually contributes to the recession.
To explain: If I stopped frequenting the bookstore every month because I don't think i can afford the luxury any more and several other customers decide the same, it affects the bookstore's income. By everybody collectively having that effect on the bookstore's income. Makes sense? Then the bookstore realises sales are falling and they decide cutbacks here and there and may include sending people home or not ordering magazines from a particular source and so the cycle continues.
On the other hand a recession is part of the cycle in economic terms. I believe it goes through, a Boom,Slow Down,Recession and then Recovery. The time frame can vary in these stages and overall.
What does all this mean? Well, when you understand these and the impact it has on your choices, it can make you a better investor,consumer and perhaps even entrepreneur.
In fact a lot of people have used the recession as an opportunity to start their own business(perhaps retrenchment and no other option available). The housing market slump in the US would mean those who were saving and waiting for the market prices to fall are now poised to take full advantage of an opportunity to buy a home at a reasonable price.Then there is the Investor who can now purchase stocks in this Bear Market(everybody selling) by looking at companies that can make the long haul and are selling at below their best price.
Interesting times we live in. The opportunities are there. When one door closes another opens. It seems hopeless especially those who may have lost their way of living for how many years but that's how we evolve and dig deep down and come up with something that works for us.
About Me
- Jan Davis
- Always interested in learning about the financial world and just learning on the whole. It never ends......
I agree. This recession offers a lot of people the opportunity to start their own businesses. The good thing about it is that you don't have to come up with a new idea to start - you can just take something that exists and find a cheaper, less costly way to do it. For example, you can start your own courier company like some friends of mine did. In order to create a niche for themselves they use bicycles instead of vehicles which comes with so many advantages. The key is to look around you and see where there is a need for something to be done more effective and in a more economical way and just do it.
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