What happens in a recession?

K

Killme00

Guest
What steps can we take to protect ourselves from a recession?
How big an impact would a US Recession have on the Irish Economy?


Are there any self sufficent economies in the world? Is there a model for a recession proof economy? Should we be willing to offset large profits in lieu of future stability and less profits?
 
Killme00 said:
Are there any self sufficent economies in the world?
Click to expand...


The king of Thailand is passionate about this - but self sufficient in Thai terms is probably not what you're talking about.

The Swiss seem to be pretty insulated though.

Should we be willing to offset large profits in lieu of future stability and less profits?
Click to expand...
Should or would? I think people are inherently too greedy to think like this except when it's too late.
 
you ask a lot of questions.

in my opinion ireland is very dependent on the world economy for exports and trade. if there is a recession stateside then cutbacks will be made and redundancies will occur in ireland.

ireland is now a rich economy but not due to domestic demand, its all export driven. the US companies will cut back where its cheapest to cut back (in the US) first but if the recession is severe then we WILL be affected.

best advice is to work for an irish company with a good history and one thats not too reliant on economic cycles or get a job with the civil service !!!
 
I have always kept a minimum savings cushion of at least 4 months, which is exclusive of pensions.
Watch you spending and identify the difference between need and want.

If the US economy goes into a deep and prolonged recession I’m afraid very few of us will be insulated from it unless you work for the public sector.
 
theoneill said:
identify the difference between need and want.
Click to expand...

Good advice. I think we as a society have been making this decision badly for a few years.

Why are the swiss more or less insulated from econic turmoil, whats different about their economy?
 
Killme00 said:
Why are the swiss more or less insulated from econic turmoil, whats different about their economy?
Click to expand...

Have a look here for general wiki view.

The US are an important trade partner for the Swiss and whilst US recession has affected the country, and no doubt will again, the impact usually seems to be considerably less for Switzerland than for the rest of Europe.
 
We should consider embracing Juche, to become self sufficient.
 
I think we need to define a recession. I seem to recall, the official definition is two successive quarters of negative economic growth.

What we are seeing at the moment is reduced growth, which is technically not a recession
 
teachai said:
I think we need to define a recession. I seem to recall, the official definition is two successive quarters of negative economic growth.

What we are seeing at the moment is reduced growth, which is technically not a recession
Click to expand...


Good point but reduced growth doesn't sell as many papers as recession
 
teachai said:
I think we need to define a recession. I seem to recall, the official definition is two successive quarters of negative economic growth
Click to expand...

I think, specifically, it's 2 or more successive quarters of reduced GDP.
 
Killme00 said:
Good advice. I think we as a society have been making this decision badly for a few years.

Why are the swiss more or less insulated from econic turmoil, whats different about their economy?
Click to expand...

I believe they suffered a "down turn" in the early 80s in the property market - certainly at least when we were buying here that was referred to many times.

As a nation they are very cautious and seem to want to avoid booms as much as down turns (lay man opinion/observation no links to support that statement just my 2c from living here).

Buying a house here was so interesting in comparison to home.
Its very hard to get a mortgage here without a minimum of 15% deposit - indeed they prefer 20%. It means that buyers here are normally in their late 30s/early 40s at the earliest - the FTB market is substantially smaller than home. It also means that prices arent pushed up with haggling (as the bank will only lend you 80% of what the bank perceives the value of the house to be regardless of what you have agreed to pay). There are far less packages (ie no saving account mortgage etc). The meetings with the bank were a lot more formal - at home it nearly feels like a mortgage is ordered over the counter - here we'd 5 formal meetings with 2 bank managers (and we were given a gift by the bank manager on closure of the mortgage). The mortgage term is so much shorter (circa 5 years), at that point we have to remortgage and be re-evaluated again. At home I can get a 30 year mortgage for a large amount and probably never be challenged again (assuming I make repayments).

Its very clear from living here that theyve heavily invested in their infrastructure (roads, farming, tourism).

A bit of a waffley post - and very much a reflection of my experience as oppose to a formal economic review.
 
teachai said:
I think we need to define a recession. I seem to recall, the official definition is two successive quarters of negative economic growth.

What we are seeing at the moment is reduced growth, which is technically not a recession
Click to expand...

Caveat said:
I think, specifically, it's 2 or more successive quarters of reduced GDP.
Click to expand...
Wikipedia - Recession
In macroeconomics, a recession is a decline in a country's gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year.
Click to expand...
 
Perhaps the most important element of the debate on whether the US is or is not heading for recession is whether or not US consumer spending is headed for its first quarterly decline since the early 1990s.
 
GOBSTOPPER said:
Because they are the bankers to the worlds drug lords,despots,terrorists,etc.etc. their whole society is built on other peoples misery IMO
Click to expand...

....but shouldn't we be looking for a piece of this lucrative action? the IFSC is clearly not pulling in enough wealth for us! lol.

Does anyone else feel that recessions are too easily talked up? Newspapers exaggerate everything to sell themselves but joe public may well believe all of it and change their spending habits....thus leading to real recession.

It would be nice (IMO) for the US economy to have less global impact. Does anyone think this is beginning to happen? Or do you still firmly believe the adage that the US economy sneezes and the world catches cold?
 
murphaph said:
Does anyone else feel that recessions are too easily talked up?
Click to expand...
No.

You are deluding yourself if you believe that it is possible to talk up a recession. It is not possible to talk up economic growth either.
 
demoivre said:
What, consumer confidence and consumption expenditure aren't correlated?
Click to expand...
No, talking about a recession and consumer confidence aren't related.

Consumer confidence is related to income and expenditure.

Recession talk makes people examine their income prospects and their expenditures in a new light.
 
You must log in or register to reply here.
Back
Top