Sorry everyone - I don't think there are any forums that match this thread directly (given these 'interesting' times, maybe it would be a good idea to start a "Surving the Economy" forum). - - Anyway, I got together with family for Thanksgving. The general business climate came up in conversations, but I could see that most people do not follow the ins-and-outs of the economy, or have much of a grounding in how it works. Macro-economic education is woefully inadequate. Most of the people who I've spoken to about this know that something is going on. Theyve experienced tightening of credit, can see that business has slowed down, and are aware of increased unemployment. - - They know nothing of derivatives, the impact of the trade imbalance, the actions of the Federal Reserve, etc. Most of those who I've spoken to seem to be operating as though the current conditions are similiar to other past downturns and will turn around after a few months. - - (It would be wonderful if their optimism somehow turns out to be justified.) I didn't go into any of this - - what the heck, let em' enjoy the holidays ! How have you guys spoken to and given a little warning to family & friends about the economy ? Regards, - - -
Warning Family about the Economy
- Thread starter Tigerjaw
- Start date
Decades of excess are INSTILLED. Hence the feeling everything will be OK. Unfortunately, that belief stands no better than a 50/50 (and Im being kind) chance of being correct.
As for not understanding the more esoteric and intricate goings-on, Joe Plumber deserves some credit (literally?)! Even p-p-p-Paulson can't explain the derivatives that are in play. At least Joe admits that derivatives are something that Joe doesn't understand.
Osorico
As for not understanding the more esoteric and intricate goings-on, Joe Plumber deserves some credit (literally?)! Even p-p-p-Paulson can't explain the derivatives that are in play. At least Joe admits that derivatives are something that Joe doesn't understand.
Osorico
Didn't Buffett say even his best guys can't understand CDS?
"Wifey,"
"yes?"
"Do you like living in this house?"
"Oh, I love our beautiful home dear."
"Great, so do I. You know, I work in the financial industry and I see a lot of things going on. Let's have a discussion so we can share ways to avoid having the bank tell the sherriff they want their house back."
Simple enough?
So many people just don't want new info, especially if it calls them to action. Personally, I'm planning for the worst and hedging all the ways I can. I'm in a position to do something, I don't discuss the future with people that are either not receptive or not in a position to really do anything about worst case..
Makes sense - a lotta people are screwed and can't do a helluva lot about it anyway even if they knew what was going on. - - Like you I'm hedging for various potential scenarios, - including close & distant family potentially showing up on the doorstep needing help sometime in the future.
I tried, but usually they thought I was nuts. Less so anymore, but its a bit late, now for most folks to try to be prepared.
Some recent examples of things we might see are like Argentina, Soviet Union, Russia, Belarus, Yug., Iceland... Read some of the stories on those collapses to get an idea of what things get scarce, etc.
Some recent examples of things we might see are like Argentina, Soviet Union, Russia, Belarus, Yug., Iceland... Read some of the stories on those collapses to get an idea of what things get scarce, etc.
Best thing to do is to keep your mouth shut.
Unsolicited advice is never listened to and when you have it wrong and there is an upturn - even momentarily - then you are going be accused of all kinds of things, even to the extend of "costing them money with your stupid ideas".
This is a loose-loose situation for you I would keep quiet. Ofcourse this is unless it is with your partner or if asked explicitely and unable to get out of it (and then I still would stay on the surface).
People will never listen to good advice, history has proven that over and over again.
Maria
Unsolicited advice is never listened to and when you have it wrong and there is an upturn - even momentarily - then you are going be accused of all kinds of things, even to the extend of "costing them money with your stupid ideas".
This is a loose-loose situation for you I would keep quiet. Ofcourse this is unless it is with your partner or if asked explicitely and unable to get out of it (and then I still would stay on the surface).
People will never listen to good advice, history has proven that over and over again.
Maria