Recession or the new norm???

[skyhuck]

Things definitely aren't what they were, and probably won't be for a while. The scary thing is.. if the euro goes tits up and drags our banks down (could easily happen) our government will have to print more money to bail them out. This will cause inflation which will mean a hike in interest rates. High interest rates will be seriously bad news, the reason why this recession hasn't felt as bad as some others is the fact that interest rates are virtually zero.. It will be horrible if they go up significantly.

 

What really sucks is I have finally got the hang of running a business... and now the economy has turned ****.... If I had known 10 years ago what I know now I would have made a fortune. Instead I was working 6 days a week for 250-300 a day and was skint all the time....

 

Ain't that the truth!!!!!!

[Tom D]

Inflation doesn't help. Looking at my accounts for last year I spent £22k on motor expenses, thats just fuel and servicing. Scary.

[Steve Bullman]

I agree, but its difficult to prepare in the current climate, there is no slack to be using for preparation for any future down turn.

 

I'm fortunate to have no business debt and minimal personal debt that will be payed off this year, but as for having cash to prepare for the future its just not there

 

Sorry, I didnt mean saving cash, i meant planning in what direction to diversify your business

[skyhuck]

Sorry, I didnt mean saving cash, i meant planning in what direction to diversify your business

 

I know what you meant mate, but it often takes cash to change direction, I guess its just a case of adapting as cheaply as possible .

[Steve Bullman]

Inflation doesn't help. Looking at my accounts for last year I spent £22k on motor expenses, thats just fuel and servicing. Scary.

 

Hyper inflation will certainly help a lot of people though

[chrisgilltreesurgery]

You're all wrong.

 

The good times are just round the corner.

 

In fact, I'm thinking of pre-ordering a shed load of champagne and cocaine just so I'm ready for them.

 

LOVE you outlook on life Mark, must be a Geordy thingy

[RichardT]

The growth of the UK economy over the decade before the crash was comprised almost entirely of property, construction, financial services and state spending. Most of it was funded by debt. Our total debt is, proportionally, worse than Spain's and by some measures worse than Greece's. Those engines of growth are, technically speaking, knackered for the foreseeable. Consumers will be unwinding debt for some years, and discretionary spending will be tight, particularly given the real inflation rates on fuel, food, etc. The glory years will not return for a good while, if at all, but livings will still be made.

[skyhuck]

Hyper inflation will certainly help a lot of people though

 

I could be wrong, but I don't think the Bank of England will push up interest rates.

 

The difference today is that personal borrowing rate are no were near base rate.

 

The fact that mortgages are affordable is stopping this recession turning into a depression, IMO.

[Paul Jenks]

An extract from a book I've read:

 

A key psychology for leading from good to great is the Stockdale Paradox:

 

Retain absolute faith that you can and will prevail in the end, regardless of the difficulties, AND at the same time confront the most brutal facts of your current reality, whatever they might be.

 

It's a mantra I endeavour to keep in mind whatever I do. (It's not easy and it takes time)

[Tree Man Tom]

Sometimes you just gotta make the best of a bad situation. Knuckle down, work hard, do your best

 

But then i dont have any family or overheads.

Edited May 20, 2012 by Tree Man Tom