THE ECONOMY AND YOU
June 7, 2008 – 12:47 am
“What are YOU doing to survive the downturn?”
Are you being cautiously optimistic, not spending recklessly, but still operating as close to normal as possible?
Or have you firmly turned off the spending tap?
Unfortunately, I think too many have opted for the second choice and almost completely stopped spending.
Boog
It seems like the right and sensible thing to do, doesn’t it?
Just suppose for a minute that you are a hydroponic gardener and you TURN OFF THE TAP. How long will it be before all your plants wither and die and you are out of business? The answer is obvious, isn’t it?
In that scenario there is a very direct connect between the action and the result. But imagine the economy as your hydroponic garden and all of us spending sensibly is the water that keeps it going.
If you don’t think the analogy is appropriate, have a look around. Everyone is doom and gloom. Cashflow has dried up. Businesses are withering. Many will not survive if things stay as they are for too long.
“What are YOU going to do about it?”
Will you carry on sensibly as always, or will you give in to the madness? Water the garden, or turn off the tap?
It is interesting to note that almost all of our major trading banks have dropped (or are dropping) their fixed home mortgage rates. So, they are watering.
Also of interest is that Warren Buffet, the so-called “sage of Omaha“, the greatest investor in the world, has stated recently that the worst of the economic fallout in the US is over, so I guess he is suggesting we should be watering.
Don’t know what you will be doing today – but I am going to be re-hydrating my watering can.
One Response to “THE ECONOMY AND YOU”
The best policy is to wait and watch before doing anything drastic.
By Rajita - Logo Design on Jul 2, 2008