Global financial crisis - what does it mean to you

[pokey]

Why think of now or what occured yesterday? is okay to remember and learn but react??? Naaaa

I couldnt give a crap as im not quite ready for retirement and that is where it seems to be hitting hardest. The retirees and the large investers whom rely on the international money market and  those who source stock from OS.

Buy australian. exchange rate sucks now so buy australian and help the economy.

 Its all a doom and gloom outlook . Propaganda from the big players as they are losing but the small guy wont notice much at all as we are always knee deep in crap.
 Yeah a few jobs will dissappear. lifes like that. Its full of change bought on by divorce, Death,  financial difficulties, health or whatever.
Think positive and be willing to accept change and get on with living in this great land of ours

we just bought a house in .. well the middle of no where but the centre of everywhere as we truly believe we will come good soon.

Think positive

[runutz698]

Hey Guys,

 I with pokey, it only bad if you want it to be, I work in the safety world selling to all sorts of business, I have very few customers that are quiet, most are flat out. One guy said to me this morning he had his record month last month and will probly beat it this month, So he is kicking goals.

I mean people like the pacific brands ect. are all forecasting(fore seeing the future to allow cash flow through the business) there wages for the future and what they belive will happen, not that it has happened and may never. It is a negerc reaction to what the media is saying. The media should really be shot as they will make the impact greater with there glass half empty attitude.

Nutz well I may be.

[Freakshow]

I was only thinking that today,I sell goods made from plastic and steel, so by that theory if petrol and minerals have bottomed out to record lows then the price of goods shold be cheaper ? why is head office coming back with expect a 15% increase ? its all bullshit, so the exchange rate has fallen but thats reflected as an offset in the raw materials and labour  etc, so its all another WW scam i reckon , the markets are being manipulated as always as are the corporate profits, just the other day another mob who dropped 100 heads posted a record profit in the millions ? its all about shuffling the pot and making it work .

Its just numbers on differant pages, cant say other than not getting gear out the US atm i havent noticed anything differant in my day.

[Marc.com]

depends on where and who you work for, my friends work(did work) for people like HSBC, Lehmann etc etc, about 50% of them or more don't have jobs right in an industry where recovery in the near future is unlikely. everyone is heading off to grad school, first degree won't cut it in the job hunt these days.

[Marc.com]

however in saying that, we have become reliant on these financial products, hence the Governments of the world pumping billions into the problem. When you take a home mortgage, car loan etc etc you set off a chain of events that involve some kind of financial vehicle.

Interesting stat, 97% of US vehicle purchases involve finance, take out the finance and you can imagine the rest.

[mx250]

Interesting stat, 97% of US vehicle purchases involve finance, take out the finance and you can imagine the rest.

Oz would be similar.

And what % of house finance in done by credit?

And what % business rely on credit in one form or another (leasing vehicles, machinery, premises etc)?

In fact if you are not 'leveraging' your assets by one form or another (own your home, why not borrow against it to buy an investment property) you are considered a conservative fool and are going to be left behind. In fact I think in part this mentality has been part of the cause. In fact I think that because we have created such an artificial bubble the recovery is going to be a lot longer and a lot deep then most are willing to admit or concede.

[Marc.com]

In fact if you are not 'leveraging' your assets by one form or another (own your home, why not borrow against it to buy an investment property) you are considered a conservative fool and are going to be left behind.

the interesting Aussie stat on that is housing costs as % of household income, in 1994 (last recession) it was 65% now it is well over 100%.

as for investment properties, leverage works both ways.

[pancho]

my big concern for the younger generation is that those who buy a house today with the present low interest rate are likely to end up in desperate financial difficulty if they stretch themselves to the limit to make payments now. remember the fiasco about 30 years ago when the nsw gov started a scheme for new home buyers. they all ignored america's Milton Freedman who warned that when government spends money they haven't got, massive inflation is around the next corner.thousands of nsw buyers lost every thing when inflation went up to 20 odd percent.i believe what our fed gov. is doing to keep us going in the present financial drama is on the right track, but big inflation will follow as sure as night follows day. i also believe that a small-ish rate of inflation [5or6%] is not a bad thing for a while but when we get up around 20% which i feel America certainly will that's big trouble. cheers wally.

[Marc.com]

The cure for big inflation is just around the corner, it is called big interest, the Governments have used low interest as a quick fix for declining consumption, but as you say inflationary pressures and returns on investment capital  will see interest go back up. 10% is more realistic.

I wouldn't encourage youth or anyone else to buy a house at the moment, unless you plan on living in it and enjoying it for a long time....I am with Warren Buffet on that score. 

[runutz698]

I think it will have to turn around to looking at one wage for loans and you will also need a deposit that doesn't include the goverment grant. It has to happen, we have proven that people can't look after there own finaces and over strech so we will have to make it so people can't over stretch to keep things stable.

Nutz maybe I am!!

[VMX247]

what can and does happen

[TooFastTim]

Wally and Marc: unrestricted access to credit is no different to the govt printing unlimited money, or these days, making unlimited money available. The upshot is there MUST be inflation. Inflation will be accompanied by high interest rates which kill growth.

I'm no economist but this is way I figure it must go.

[VMX247]

yep the media sure does have a lot to tell and then we don't get all of it.   
I must admit its been a few weeks since I have even watch a full half hour of news,lifes too full of bikes and living.
We have a new power station getting built here and a Alumina Refinery expansion, up the road so its all go here in south west WA.
cheers Alison

[yzhilly]

I scored a new job which has me working  long and hard for big bucks and no computer yeehah ,so i have missed a fair bit of the goings on lately ,but i have a job so i,m happy and can still afford to play with my old bikes .

[Lozza]

What RECESSION