Pandemic Spending

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Clarence
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Location: Ottawa area, Ontario
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Re: Pandemic Spending

Post by Clarence » Sat May 30, 2020 11:59 pm

I think that for those with a good income they are saving a bit more but at the same time I can’t see these people not stocking up a bit. Let’s say your Family income is 150-300k, you will be saving on restaurents, clothing, entertainment etc and have ( besides us on their boarD :-) ) have some money left over from savings, to spend on extra stuff. For those with more money, they too will be saving for stock purchases and perhaps deals on real estate....for those with no Big money to spare, they are Likely saving a few hundred.. for rainy day.

Either way, doesn’t necessarily bode well for businesses opening back up. Summers short so by the time it’s open , it may be too late for that summer spending spree and if we get another wave, things will really shrink up



thecrownsown
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Re: Pandemic Spending

Post by thecrownsown » Tue Jun 02, 2020 11:43 am

This is a great time to invest. With prices low investments into whatever your RSP is for means when the economy bounces back, you've more in the kitty to grow. Real Estate is down in many areas but from what I'm hearing (anecdotally of course, and only in my region of Ontario) is it will be short lived.

What concerns me is the number of economists (again, a few speaking out does not mean its for certain, but something to definitely think about) saying there will be a slight rebound with government stimulus, but a depression is on the horizon in the next few years. One of the biggest factors....governments accross the world have amassed such huge debt its simply not possible to continue the "status quo." We are going to either have to learn to live with less, or pay more in taxes...personal and corporate.

There were a few good articles from The Atlantic, one interviewing the economist who predicted the 2008 meltdown who is convinced another depression in on the horizon...you think i could find it though....sorry about that.
https://www.internationalpreppersnetwork.net/viewtopic.php?f=57&t=7738

Clarence
Canada
Posts: 1000
Joined: Sun Sep 10, 2017 2:13 am
Location: Ottawa area, Ontario
Contact:

Re: Pandemic Spending

Post by Clarence » Tue Jun 02, 2020 1:46 pm

thecrownsown wrote:
Tue Jun 02, 2020 11:43 am
This is a great time to invest. With prices low investments into whatever your RSP is for means when the economy bounces back, you've more in the kitty to grow. Real Estate is down in many areas but from what I'm hearing (anecdotally of course, and only in my region of Ontario) is it will be short lived.

What concerns me is the number of economists (again, a few speaking out does not mean its for certain, but something to definitely think about) saying there will be a slight rebound with government stimulus, but a depression is on the horizon in the next few years. One of the biggest factors....governments accross the world have amassed such huge debt its simply not possible to continue the "status quo." We are going to either have to learn to live with less, or pay more in taxes...personal and corporate.

There were a few good articles from The Atlantic, one interviewing the economist who predicted the 2008 meltdown who is convinced another depression in on the horizon...you think i could find it though....sorry about that.
It’s funny you say it’s a good time to invest. I got out of market well over a year ago and have watched the stocks go down and kept wanting to get back in during the lows, had I, I could sell even today and have made some real decent coin but I didn’t buy. I still could get in on one one stock I like that is still way down from highs but am again hesitant. Maybe I will miss the boat but dang it’s a real gamble.

These debt amounts are high and as you say, someone ( us and corporations) will be paying the tax bill. I can’t see to many cuts coming from governments addicted to spending and buying votes, so that leaves the working class to foot the bill for welfare state and government employees and the very lucrative pensions.

I am certainly no economist but the numbers are huge and growing. Like you said, someone needs to pay for it and there’s only taxpayers to do that. I can eventually see cuts due to bankruptcy because governments being governments, they prefer to buy votes And will not cut services or pensions willingly but instead use the excuse of bankruptcy to provide cover for their inactions. Bankruptcy will be ugly and almost assuredly result in increased crime and of course, a much lower standard of living. Our current lifestyles are all built on borrowed money and people have no idea what our nation would look like without this fake money. Reality is going to really bite!

As this board is about being prepared to survive any number of events, we need to think of the financial issue. I mentioned The issue of people being divided by what they are paid, have jobs when others are sent home or pension plans. I am pretty sure that at some point ( if not already a silent issue) this issue will boil up and divide people even further. Jealousy, envy... are all human traits and like all other traits and how they can manifest into hate...must all be understood and planned for in our plans.

Look at the current situation in the states, you see the police unable or unwilling to control the gangs. The leaders count on certain groups for their votes and are for now anyways, refusing to protect the taxpayers and other good citizens. So if they are willing to see good people loose their property, suffer injury or loss of life now, what will they do if things really got out of hand? At a certain point it gets too hard to control, perhaps like during the hurricane in New Orleans, the police simply abandon post and focus on their family! Perfectly natural and one can spin all they wish but reality is reality and facing reality in an honest and non biased fashion is one of the best things we can do if we wish to survive. I know the good people out there and I have worked with them and count as good friends but the shear volume of crowds or size of a disaster will impact even the best.

Based on what I have seen, heard and been directly told, you will be on your own! Important to let that sink in for a bit. “You will be on your own and the cavalry will not be coming” Direct quote from some folks. Governments will never ever admit to that but that’s reality.

While I started with nothing and worked my way up doing hard jobs in very difficult locations, sacrificed a great deal to have what I have, I have seen the eyes and heard the comments directed at me and my family for what we have built and you can see the envy and slight anger, snide comments etc.

As economy takes a hit, I am expecting more envy or anger directed towards those who have more than others and we need to be wary of that.

So while we deal with covid, watch riots in the cities etc, we need to never lose sight of the economy and the borrowing going on. One way or another, we will need to pay the bill and it’s a huge one and growing, when the bubble bursts is beyond me, but I certainly can anticipate the consequences.

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