Economy - Scared yet?

[IBM]

http://news.bbc.co.uk/1/hi/business/7686552.stm

Reading a few books at the moment relevant to this, like 'Tipping Point' and 'Black Swan' and I must admit, scares me witless.

Now I've got a fairly recession proof job, don't have a mortage and have no outstanding debts. My wife's business may well go down the tubes if things don't improve, taking a lot of time, effort, and money with it when it goes, but it's not going to drag us down with it, so it'll just be a (costly) learning experience.

But looking at the way things are going, and the catastrophic domino effect which could come into force when this situation really begins to bite, makes me wonder what's still going to be standing when this is all over. It's the crazy stuff that no-one anticipates that really makes my head want to explode.

When people like Warren Buffett says things like 'once in a century event' when we've already had some major financial collapses including a major global depression, certainly gets me thinking.

Anyone else more than a little worried?

[pollaxe]

Concerned, yes. Scared - not yet.

The trouble is it's a fairly complicated situation to a numbnut like me so whilst there are definitely worrying things going on I'm going to see what happens over the next month or two before getting truly alarmed... at least, that's what I'm telling myself. With luck it'll be a shallow recession, hopefully not too drawn-out. I'm told that inflation levels are a key factor in turning a recession into a depression so hopefully it'll be the former and not the latter. A recession at least does seem likely - I won't say inevitable.

People with more financial nous than me are probably able to offer a more qualified opinion but that's my thinking. At least at the moment.

[TheAnimus]

question is, how low is it going to go?

I've already got this lovely chunk of red, where everything has dropped thats in the FTSE bar BLT been a really depressing chunk of 'making it look like i've didn't mentally check out of work 3 hours ago' screen candy.

[shaithis]

Someone let Mad Max, Snake Plissken and Rick Deckard know they are due on stage soon!

[Zak33]

I've already got this lovely chunk of red, where everything has dropped thats in the FTSE bar BLT been a really depressing chunk of 'making it look like i've didn't mentally check out of work 3 hours ago' screen candy.

i have no idea at all what that means!

[Zak33]

and in answer to the Opening Post, yeah, it scares me witless.

Because people I care about and like are being effected in a huge way, people who've not done anything wrong. Except to be in "Retail" when the clients stop arriving at the door.

And in many places, they have just stopped.

[Airlemental]

and in answer to the Opening Post, yeah, it scares me witless.

Because people I care about and like are being effected in a huge way, people who've not done anything wrong. Except to be in "Retail" when the clients stop arriving at the door.

And in many places, they have just stopped.

Thats Very True. I work at Waitrose and the past few weeks have been very quiet, it's a little unnerving, but i wouldn't say im scared yet, just worried.

[CrimsonAvenger]

Time to sharpen up your penny saving skills. Making it easier later by having less expenditure.

Im not scared either, concerned but doing the above makes me feel better about the situation.

[ACiD303]

My mate, who decided to wing it to Japan a few months ago to depart in December, cannot get any work all of a sudden - he used to earn £500-£800+/week doing corporate events, which of course are now being downscaled or plainly not held due to cutbacks. He was counting on money coming in so that he could stay in Japan for a while and find a job, but that's looking less likely. Not that it's life critical, but there are other people I know who have had to reconsider what their short term goals are just now plainly due to the financial situation.

I'm concerned - I'll graduate next year, and I don't think employment opportunities will be fantastic come that time. Scared...not really, although I don't know why...

I read a readers quote in a newspaper today that read (rhetorically): I'm confused, our economy was doing well because we were spending, but when it's slowing down we are meant to stop our expenditure?

I won't pretend to know anything about Economics, despite all thats going on in the news, but I find the whole system rather volatile: so much a peep of bad news, or even a chinese whisper can cause sudden drops, and before you know it someone's out.

[mediaboy]

I'm not scared. Nope...


I'M FREAKING TERRIFIED!

I don't know what's going to happen and I want someone to tell me. Are we all going to die? Is the world going to collapse? It's starting to sound like the beginning of Maelstrom!

[Maelstrom being a game that is set post-breakdown of world.... you'll have to play it to see references though ]

[badass]

I'm sorry but what's to be terrified about?

Whats the worst that can happen?
Some people will lose their jobs, some will lose their savings, some will lose their businesses.
There will still always be food on the table and a place to live, provided you have a few brain cells.
What else really matters?
Perhaps those that are really terrified of this Credit Crunch and its implications should go visit some poor country where simply staying alive is a struggle.

[SiM]

I am not scared. Since my employer went bankrupt, I have found a new job and the governments/central banks won't let another bank go bankrupt so I'm fairly safe for now

[Stoo]

Not scared at all tbh, the company I work for just announced that it's 50% YoY, and around 20% up on target..

I have no debts, and somewhere to live which doesn't rely on mortgage payments

[5cupa]

I'm scared if that friggin super annoying phrase:

Credit Crunch

is about for another 12months

[IBM]

I'm sorry but what's to be terrified about?

Whats the worst that can happen?
Some people will lose their jobs, some will lose their savings, some will lose their businesses.
There will still always be food on the table and a place to live, provided you have a few brain cells.
What else really matters?
Perhaps those that are really terrified of this Credit Crunch and its implications should go visit some poor country where simply staying alive is a struggle.

What's the worst that can happen?

Not even close

I'm thinking you don't have a family or dependents, and as far as telling people to go visit 'some poor country' if this gets as bad as it potentially could, it won't be far off.

A lot of people have faith in our economic system and the people who control it, but even the experts don't know Jack about the consequences of what's going on, and when banks are attempting to write debts in the tens of billions off their balance sheets, you should really perk up and pay attention.

I'm not saying it will. I'm just saying it could. And I wouldn't wish it on anyone, but I'd love to see you experience the folly of your naivity, but of course then we'd all be screwed

[dave87]

Yes and no.


I have limited my spending to what cash I have available, so I don't currently have anything on finance. I know what I can and cannot afford to do, and could survive without my job should the worst happen. Anything I do buy, I make sure I can afford for the foreseeable future.

However, given my personal circumstances, unless the entirety of my companies parent company goes under, then I have a job. (Surprisingly, we are actually short of staff). I'm also currently at university and worst case scenario, sell the car I worked to achieve. It is, however, unlikely to happen this side of Christmas, as it is traditionally when the sector I work in provides the majority of its yearly turnover.


Those I would worry about, however, are the people who build their entire lives on finance, and as such when it becomes less readily available beginning to struggle, increasingly so in a climate such as the one we are currently experiencing.