FYInance

Archive for the ‘Recession’ Category

Everyone that hasn’t been living under a rock for the last year and a half will be well aware that this recession could possibly be the worst one that the world has ever seen. In fact, the last time the economy was in this sort of state it was world war two that got it all back on track, and I’m guessing nobody wants a world war three so we are going to have to look for different solutions.

It is believed that there are three main causes for the economic slump, and one solution, this theory has been called the four Ms.

I believe that the first factor that helped cause this recession is Mr. Mervyn King. He clearly doesn’t even realise how much of an impact his statements have or the mayhem and panic that they have caused. The second “M” to blame, perhaps more so than the others, is the media.

I believe that both of these factors should be willing to take most of the blame for the situation we all find ourselves in. The media are simply exacerbating matters with their constant negativity and messages of doom. It is enough to make the best of businessmen panic.

The third issue to blame for the slump is the lack of money from the banks. During the economy boom, banks got lazy and now seem to have alienated themselves from customers. The Government did offer to support the banks hoping that it would have a positive effect on small businesses, but like any other business, the banks want to look after themselves and avoid risks. If the government wants to help the smaller businesses then they should forget about helping the banks.

Although the government’s new plan to pay invoices in 20 days is applaudable, they seem to have forgotten that pretty much all contracts will be with big contractors and small businesses are subcontractors. The better pay terms received by these larger contractors has not been passed down to the small businesses.

So now we’ve covered who or what is to blame, what do we do now we are here? Well, I do not think that recession is entirely negative, there are opportunities to be had. The way to seize these opportunities is to keep carrying out the fourth “M”. Marketing.

When the economy is booming, we all become like the banks, lazy. This is because in comparison to times like these, customers are simply falling through your door, but now we have to work a lot harder. Companies absolutely MUST keep on marketing themselves throughout these harder times and judging by the last economic downturn of the early 90’s, the ones that do will be sitting right at the top of the pile come the day the economy starts growing again.

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The economy is hard on many people. Not only individuals are struggling to pay bills, nonprofit organizations, churches, and other charitable organizations also need help. After all, most charitable organizations rely on benefactors to donate money so that they could turn those money into good use to help others less fortunate people or animals.

When the economy is bad, less people have disposable income to donate and as a result charitable organizations also suffer. As a result, the people who rely on those charities also suffer. We interviewed a lady whom is struggling herself with bills what she would do if she had some money today. While many people would say they would go on a vacation or save for some purposes, this lady would like to help the world. It’s nice to see people who are very charitable even in bad economy.

“if I had a significant sum of cash, I would pay my bills. I would also stock a local food pantry since so many families are struggling to survive. Since the food crisis is global, I would also send a donation to an aid organization that helps overseas. And lastly, I’d keep some cash to pay taxes on my found money.”

Today we are going to share a story of a lady whom wrote in about her situation regarding the economy. We generally do not do this but this lady is very depressed and asked that we share her story. The story is below:

“For the first time in my life, I have been left totally alone.

My son grew up this year and spent his summer abroad, so the house consists of me and the old man.

The economy has affected us as he is a pipe fitter, and there is no work at all here at home. He’s working, 1200 miles away.

Our rent is paid in both places, but all the lonely is killing me, and depression has consumed my soul.”

The state of the economy seems to turn from bad to worse. The economy is bad for many people even for young people who have not even begun to start their career.While the stock market is not doing so great and the oil prices fluctuate, many people are suffering long term.

Below, we interviewed a young lady who is a grade A student and looks like she has a great future in front of her. However, even she is struggling in this economy.

How is the economy for you?

“The economy is definitely a problem for me and the people that I know. We are all struggling to make ends meet and the future seems bleak right now. I may have to take out a student loan just to pay for living next semester.

Also, I worry that the college degree that I am earning will be useless and that there will be no jobs in the future. I definitely worry that I will be poor for the rest of my life and that is a terrifying prospect for a twenty year old.”

Nowadays, it is not uncommon for students to think like this bright young lady. Many students think that they will need to get even more student loan to be able to survive but then they think what for? When they graduate, there will be no job especially if their parents are struggling to find a job themselves. To help you child, if you are able to, think about setting up a college fund for him or her. It will really make his or her life much more at peace. You can research on http://529-plan.info for more information on college planning.

Everyday, we hear of people who are hurt by the state of the economy. Gas price has come down slightly from a few weeks ago but it is still very high and people are still struggling to afford the high price of gas as well as the rising cost of food and other items. We interviewed some folks who are affected by the rising cost of gas and food. We will break our interview into small posts so that we can pay attention to each person we interview one at a time.

How is the high gas price and food price inflation affecting you?

“Gas prices are so high that we have to lump all our errands into one trip, we also are not able to visit our children and grandchild who live about 250 miles from us very often. This is the worst part of the price of gas for me, he is the only grandchild I have and I feel like I am missing out on a lot of his life.

The price of food keeps going up and up, we are on a limited income and it is hard to keep up with the prices in the store. We have had to cut a lot of dairy products out of our diet, they seem to be what is raising the fastest.”

Thank you for sharing this story. As you can see, the high gas price is not just affecting people’s wallets or their finances, it actually affect people’s lives in so many ways. Not being able to go to see your loved ones make life not worth living.