| Financial Crisis Impact on Spending Behaviour |
|
|
|
|
|
littleroc02us
Moderator
Cash: $ 205.35
Posts: 1015
Joined: 09 Feb 2009
|
|
 |
|
quote:
Originally posted by RichS
Deflation is the persistent decrease in the level of consumer prices or a persistent increase in the purchasing power of money because of a reduction in available currency and credit.
With that said, when was the rate of your credit card reduced? When has the cost of a new car gone down? When has the cost of food gone down? Home prices dropped because of over zealous bankers and appraisers getting greedy and stupid. Postage went up during the last couple of years and they are looking to raise it again. i could go on and on.
I don't want to be argumentative but please give me specific examples of what you are talking about to enlighten my view. Thanks.
During the recession I bought a lot of things cheap.
In 2008 gas prices went down to around $1.70 national and stayed under $3.00 until late 2010.
In early 2009 I was able to buy Total market Index Funds at around $21.00 a share and now there are at $33.00. Huge sale!
In the most recent Money magazine they were talking about how you could buy a 50 inch TV for around $1200 in 2007 and now you can buy the same one for around $599.
There was the $8000 tax credit to purchase a house.
There was the cash for clunkers idea.
There was the $1500 tax credit for windows and insulation installation.
I was able to buy inexpensive clothing from Kohls at a very cheap price.
*My salary actually increased 3% last year. My retirement went from 4.75% to 5% match from my employer.
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
|
Mon Mar 21, 2011 6:22 pm |
|
|
littleroc02us
Moderator
Cash: $ 205.35
Posts: 1015
Joined: 09 Feb 2009
|
quote:
Originally posted by coaster
quote:
Originally posted by littleroc02us
I don't agree with that because since 2007 we've been in a deflationary time until now.
That's a pretty short time period. Try about a 100-year look-up. It's shocking.
Yet.....in terms of what people can buy with an hour's worth of income.....it's a different story.
My post was regarding the Recession period not a 100 year time period when I wasn't even alive.
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
|
|
Mon Mar 21, 2011 6:48 pm |
|
|
coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
|
quote:
Originally posted by littleroc02us
.....when I wasn't even alive.
Ya, but those are the times that'll get ya.
Why do we have a major war about every other generation?
Why do we have a major economic crisis about every other generation?
Why do we alternate between periods of excessive conservatism and excessive liberality?
Always, and I mean ALWAYS, over-react to the more recent crisis?
It's exactly because nobody's interested in the lessons of history. Looking back those 100 years or more is dreadfully boring because it's all in the past .... now is now .... what relevance is that?
It's everything.
The times may change but humans don't change. And all our problems are caused by humans. We should look back to the problems they caused in the past, because when we don't, they get repeated.
|
|
Tue Mar 22, 2011 3:38 am |
|
|
Lively Jason
Member
Cash: $ 4.70
Posts: 23
Joined: 22 Mar 2011
|
It is obvious that the population will cut spending during a financial crisis both due to uncertainty and lack of capacity to spend. As global economies are largely inter-connected, prudence in a certain geographical region may have spillover effects on other regions resulting in cut-back and loss of confidence in local economy too.
|
|
Tue Mar 22, 2011 5:17 am |
|
|
|
