Dummies for a recession period.

luffyex2010 on 13/04/2017 - 18:39
Last edited 13/04/2017 - 20:06 by 1 other user

Not here to break balls or burn happiness during Easter for a maybe Australia Recession Late 2017/2018 news going around.

I am usually not updated with the current affairs or economic news but I am always on top of ozbargain offers …lol

So as the title says it all, are we expecting a recession coming soon? as there are some cues popping here and there, especially with my broker sending an email that all the big 4 banks are raising their interest rate due to a fear of an economic crisis.

Numerous news on the net :-

• we are in a delayed recession (ticking bomb) or probably already started in other parts of the country that we are not seeing here in NSW.
• 1 /3 chance we will be in recession in 2018
• we are spending more than we earn
• Household are living a credit life (dangerous lifestyle)
• possibility of a 500K jobs cut due to China slowdown (deloitte)
• A CRISIS in China could plunge Australia into recession, push house prices down by nine per cent and wipe out nearly $1 trillion of our household wealth, a prominent forecaster has warned. ( I believe this will mostly hit people who are playing the property investment game and people living on credit)

I hope the community could help to provide some tips and hints during an actual recession so that we can live, survive and come out of it without being like the character in "Fun with Dick & Jane" https://www.youtube.com/watch?v=4lp6_ySTsQQ

Lol abit extreme.

Note: I have not in my life experience an actual recession so I would want to be prepare for it besides the idea of having as much savings in the bank.

• 

  mskeggs on 13/04/2017 - 18:48

  +14

  Remember, economists have predicted eleven of the last 4 recessions. They are truly dismal at telling what the future holds.

  A recession will come at some point, positive growth cannot go on forever.
  I was at uni in the last one, and didn't especially notice it.
  But friends a little older than me had trouble getting their first jobs as nobody was hiring.
  And some people a lot older than me lost their low skill manufacturing jobs and never worked again, spending 15 years unemployed until they reached pension age.

  If you are concerned, keep your expenses low, so you don't need to earn much income to meet them.
  Pay off debt, so you have fewer demands on your pay packet.
  Save up some money, so you have a buffer if you lose a job.

  That is all that is required.
  The unpleasantness of the next recession will be around people who have done the opposite of those 3 items.
  For decades now, the best option has been to run up high debts and leverage into investments, especially real estate.
  Many of those people can now be very wealthy, but some will go too far and lose it all in the next recession.

  • 

    mskeggs on 13/04/2017 - 18:55

    +13

    I will add a fourth item that is related to low expenses, and that is be self sufficient.
    It amazes me the people who hire outsiders to clean gutters, make coffee, replace tap washers, install car seats, paint walls, clean their rugs, bring them groceries, manage their finances, book their holidays etc.
    I don't know why everyone doesn't grow some basil or coriander in a window box, and have a lemon tree in the backyard/balcony pot.

    People will suggest it is a better use of their time to go to work at a higher paying job, or enjoy their leisure, but knowing how to fix a leaking tap saves $80 every time a tap leaks for the rest of your life, so is good insurance in case one day you don't have the luxury to pay somebody to do your chores.

    • 

      atolikan on 13/04/2017 - 20:12

      if you are ever looking for some fodder for this argument: https://forecasters.org/wp-content/uploads/PLoungani_OracleM…

    • 

      Gronk on 13/04/2017 - 20:46

      +2

      +1 for the self sufficiency, it's not just the financial aspect though - there's a certain level of satisfaction gained from fixing something yourself without having to call someone for help and doing half decent job of it.

    • 

      luffyex2010 on 13/04/2017 - 22:21

      +7

      I am a DIY person and if you cant even fix a child seat cough.cough you will be the first person to go in a Walking Dead scenario.

    • 

      eyeballz2770 on 14/04/2017 - 11:51

      For those looking to supplement their fresh food stores and don't have the room or the desire to farm a garden, microgreens and sprouts are an easy way to do so. Microgreens are generally ready to eat in 2-3 weeks, sprouts are ready in 1-2 weeks, depending on the seed/plant. Most importantly, they have between 10-40 times the nutritional value of the full grown plant so a little goes a long way.

  • 

    Diji1 on 13/04/2017 - 21:40

    They are truly dismal.

    Surely not as bad as managed fund managers who get it right 40% of the time. Meaning you're better off rolling a dice to decide where your money goes or just doing the opposite possibly :D

  • 

    luffyex2010 on 13/04/2017 - 22:22

    Low Expenses, save money and pay off debt.

    Checked

    • 

      ozbjunkie on 14/04/2017 - 13:05

      +1

      Must have been down voted by a property speculator. Here, have an upvote.

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  jackofspade on 13/04/2017 - 19:04

  +14

  Recession is when your neighbor loses his job. Depression is when you lose yours.

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  chumlee on 13/04/2017 - 20:27

  I tend to agree with your rationale

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  Findo on 13/04/2017 - 20:45

  There'll be newish cheap luxury cars available second hand if it happens. Looking forward to a housing price correction too, my parents can pick up another property or two. Bring it on!

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  Diji1 on 13/04/2017 - 21:32

  +3

  Numerous news on the net

  If you avoided news on the internet your life would be slightly better and you wouldn't be expecting Doomsday because someone trying to sell ads told you so.

  • 

    luffyex2010 on 13/04/2017 - 22:14

    Yes I am aware of the power of media in manipulating minds but also concern in the what if/just incase scenario.

    I have been doing all that of ignoring ballock news nonsense for many years but sometimes cant help to notice the similarities of fiction (movies) and reality when certain things starts to become a familiar topic.

    Maybe I just watch too many movies O_O

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  [Deactivated] on 13/04/2017 - 22:51

  lol what the actual fire truck…..

  • 

    luffyex2010 on 13/04/2017 - 23:24

    http://observer.com/2017/04/dr-sergio-canavero-head-transpla…
    Men is now trying to be god :) but we will know end of the year if it is successful …not really ghost in the shell level but the idea is there.

    There are heaps….. over population theories like in the movie kingsmen, the planet will not be able to sustain human life if it increases at this speed. Its a scary thought.

    1850 - world population is 1.2
    1950 - world population is 2.55
    2016 - world population is 7.49

    The world we live in today is so unpredictable but its still way better than world wars.

    lol i can go on but its out of the topic.

    • 

      [Deactivated] on 13/04/2017 - 23:30

      i dont really care aye, i think 90% of people on here dont care either.

      thanks for linking an article from 2013, there have been many other head transplants done in animals in the past, i dont see any issue with trying it with humans….

      go back to your basement and put your tin foil hat on.

      • 

        luffyex2010 on 13/04/2017 - 23:39

        you seem like an arrogant lady and quite rude too but its ok everybody has their own opinion.

        I do like your website its pretty.

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  dcep on 14/04/2017 - 15:40

  Pffttt.. 9% correction ? That's not enough to cause mass defaults.

  How many hundreds percent house prices have risen over the years …

  Why not down 50% like Ireland …and everyone goes belly up then we're talking about depression.

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  [Deactivated] on 14/04/2017 - 18:43

  -2

  Brisbane is within range of Nth Korean N tipped icbm
  Those asbestos clad houses are looking attractive now
  Tin foil hat anyone?

  • 

    Zachary on 15/04/2017 - 15:06

    Oh yeah, read a couple of news article on that where North Korea was furious when Trump ordered those missiles to go…. Russia too, for that matter…

    I believe China might join in too as apparently they're allies of North Korea and Russia….or so I read anyways…

    But this won't be for another two years….

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  luffyex2010 on 15/04/2017 - 00:59

  -1

  Peace on earth…..I hope the war doesn't start.

  The only ones who will get hurt are the civilians….why can't they play their war games on PS4/xbox one

  To the Koreans, South…..I really hope that you will all be safe and without harm.