Yay economy!

[pennyrobber]

I don't remember where I read this, it stuck with me because it rings true.

Recessions are to the economy what fire is to the forest. Don't want to be around while it's happening, kinda ugly for a few years after, but it's a good and necessary thing. Clears out the deadwood, gets rid of the weak, and fertilizes the soil. A few years afterward when everything is lush and green, you forget it even happened.



So far ( knock on wood ) we're doing OK. Being more conservative and always asking can we afford this, do we need that. Should have been doing that all along. Sometimes you need a good slap upside the head to wake you up.

I feel this is true to a certain extent. The really irresponsible people and businesses are the ones that are hurting the most. Hopefully they will learn a lesson.

[derby]

I don't remember where I read this, it stuck with me because it rings true.

that analogy was used in a thread here a few weeks ago.

[Bun-bun]

The really irresponsible people and businesses are the ones that are hurting the most. Hopefully they will learn a lesson.

Really?
The business I've run for over ten years(Residential builder) hit a brick wall last year, and this year has been worse. Business is down 50-65% from before.
Please explain to me what I did that was so irresponsible that caused my loss of business so that I can fix it.

[Big Troubled Bear]

The really irresponsible people and businesses are the ones that are hurting the most. Hopefully they will learn a lesson.

Dude, I have been running my own business ( Signage & Graphic design, with custom bike painting ) for close on 5 years now and I do not live the high life, this reccession has hit me hard and I try my best to not layoff staff and save as much money as possible, I have even kept the useless deadwood that hangs around my shop, because they have families as well.
So I guess that I will start to be responsible and fire the whole bunch so that I can go out and buy a new Streetfighter.

[mitt]

I feel this is true to a certain extent. The really irresponsible people and businesses are the ones that are hurting the most. Hopefully they will learn a lesson.

I think that was a gross over generalization.

mitt

[Howie]

Dude, I have been running my own business ( Signage & Graphic design, with custom bike painting ) for close on 5 years now and I do not live the high life, this reccession has hit me hard and I try my best to not layoff staff and save as much money as possible, I have even kept the useless deadwood that hangs around my shop, because they have families as well.
So I guess that I will start to be responsible and fire the whole bunch so that I can go out and buy a new Streetfighter.

Good on you.  To better times

[LA]

The most important player in the crisis looks like Fed Reserve Ben Bernanke. Thank god he almost literally has a PhD in the 1930s depression.

Whether we individually agreed or like the decisions, the Fed's policies averted a second Great Depression.

The Fed's response was without precedent . Flooding the financial system with liquidity slowly rebuilt confidence in the banking system.  It was close.

Once Lehman went, there was nowhere to go but down, the question was how far down and we would have taken the whole world with us.  Lehman taking a dive scared the shit out of everybody.  It was nip and tuck and of course it still ain't over.  

I work for a University in a state with a Governor who doesn't think poor people need an education even in good times and doesn't understand that ignorance is more expensive than education.  make the beast with two backs we're poor.  Maybe you heard of Gov. Sanford?

We're all in it together and if misery loves company we've all got plenty of that.  

Recession over?  Maybe.  But, jobs coming back will take a long time.  Years.

LA

[Drjones]

Thoughts? - I think the shipping companies are making a business decision.  Choice 1 is to park it in a harbor and pay who knows what in fees and choice 2 is to park it off the coast for free.

This recession was caused by too much debt and too little savings.  aka. "The really irresponsible"  The really irresponsible went bankrupt already.  Those still standing today have done it right.  The old adages of the borrower is slave to the lender and cash is king never waiver.  It is just that we stupid monkeys tend to forget them every so often.

[77south]

One good typhoon and Singapore will be the wreck diving destination resort of the 21st century.


And LLoyd's of London goes bankrupt triggering another global economic contraction which will extend the recession another 2-3 years.

I guess, you win some, you lose some.

[Drjones]

I'd assume they'd fly a skeleton crew out to move the ship before that happend.

[derby]

And LLoyd's of London...

you ever read about how lloyd's is structured? it's pretty interesting. it's not your "normal" insurance company.

http://en.wikipedia.org/wiki/Lloyd%27s_of_London

[rgramjet]

Really?
The business I've run for over ten years(Residential builder) hit a brick wall last year, and this year has been worse. Business is down 50-65% from before.
Please explain to me what I did that was so irresponsible that caused my loss of business so that I can fix it.

+1

Ive been a remodeling contractor for 20+ years and I have a custom cabinet shop.  In previous years we have done 6-8 kitchens by this time.  This year we have done 2 so far.  

Ive increased my marketing by 100% over previous years just noone is biting for custom cabinetry.  Three cabinet shops have closed down within 1/2 a mile of me (that I know of.....).  Seems like the only people willing to bite are the ones that want to beat me up to the point where I'm working for free.  Anyone want to buy a cabinet shop?

My friend that owns an HVAC company hasn't felt any downturn......Dammit, I should have gone to HVAC school!  He's making bank!

I guess I was irresponsible in that I paid cash for all my machinery and tried to keep debt to a minimum as the business grew.  Shoulda used the banks dollars and leveraged!

[derby]

I guess I was irresponsible in that I paid cash for all my machinery and tried to keep debt to a minimum as the business grew.  Shoulda used the banks dollars and leveraged!

they teach you that in business school... 

[rgramjet]

That was

they teach you that in business school... 

Business was my minor actually.....

[pennyrobber]

I think that was a gross over generalization.

mitt

I agree I should have been more specific. The individuals here for example who are in businesses affected by the crap realestate market are caught in the wake of others bad decisions. Yes you may be hurting, but when things turn around your previous good decisions will hopefully keep you afloat.

What's a discussion on the economy without a few controversial opinions. Flame away.