Stocks and shares across the world have nosedived again after problems at US bank Bear Stearns and the doom and gloom merchants are predicting everything to come crashing down around our ears once again.
Of course a full blown recession means misery for some but for others who don't mind taking advantage of anothers misfortune, it could be a great time.
Looking back at the last recession in the early 90s, we can see just how to make money from a recession if you can handle the face looking back at you in the mirror the next day.
Recession is good for property auctioneers with many of the properties sold at auctions having been repossessed from the financially-stretched by their mortgage company. Good news for first time buyers with house prices slashed and sold for considerably less than the unfortunate previous owner paid.
Second hand car dealers and car auctioneers are the next in the gleefully rubbing their hands club with many people watching their autos being carted away on the back of a repossession lorry and ending up at a car auction and sold on for a fraction of the price.
Shares may go up as well as down so warn the adverts but a well placed bank employee tells me that there are some sure fire winners to snap up during a recession. Apparently shares in utilities companies, food retailers, chemists and tobacco companies always rise when the going gets tough. Obviously the company price of repossession firms will rise briskly with the all added business as well.
Morally it may be very iffy but a recession is not all bad as long as you find yourself on the right side of it and you can block out the lamenting of the newly homeless couple smoking themselves dizzy outside your front door.
6 comments:
As we say, water always finds it's own level.
Nothing immoral about recessions. They are a fact of the economic cycle. So long as there is inherent uncertainty about the future there will be cycles and recessions.
We can trace the cause of the slowdown (here and in the US) back to the housing market. The "irrational exuberance" comment of Greenspan applies in spades. While it is a fad to blame the corporate fat cats (and they do deserve a lot of oppobrium), the housing market would not be as overinflated if people did not have a) expectations of huge capital gains and b) a little more caution when it came to their ability to service a mortgage.
Agree with DSA.
ANother thing - why do so many people find bad news appealing? I think it's cuz life is pretty good, overall.
One doesn't have to take advantage of others to do well in economic down times. People that do well didn't necessarily prosper on the loss of others either.
Q
PS - cheese: feedback?
They do in the examples i have chosen though Q which is where the moral bit comes in.
Here in the uk we are begining to suffer with what the media is calling a "credit crunch". Quite rightly they have not set any alarm bells ringing by mentioning the r word.
However petrol is now over £5.00 per gallon, the cost of gas and electricity is going to rise %40 before xmas and house prices are nose diving, causing some folks to have negative equity with the mortgage.
Yes a search for recession bargains did lead me here.
steve B
ps. did i just mention xmas :(
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