Tan Kin Lian's Blog: Global recession

Tuesday, July 15, 2008

Global recession

Many people are worried that there will be a global recession. For people with savings, a global recession may be all right. With a recession, prices will come down. People will work less, as there is reduced demand. They can spend the time with the family or take a holiday.

For people without savings, it may be difficult. The lesson here - do keep some spare savings for a future emergency. Do not over-stretch and spend all of your earnings. Do not borrow on your future earnings.

I hope that, in the future, the global economy can come out with a new model. People do not need to work for long hours. They can work less and enjoy their leisure time. There is no need to produce more and more goods, which are not really needed.

Why should people change their mobile phones every one or two years, or upgrade their personal computers frequently? Why should they change their cars within a few years? These are wasteful.

7 comments:

David said...: Stagflation is the big worry ie recession with inflation. From data, Singapore is moving towards an economic slowdown but inflation is going up. For most people their wages cannot keep pace with inflation. Not only they save less now, the value of savings has also been eroded. Their material and spiritual lives also suffered. People are getting stressed, unhappy and more short-tempered although on the surface, Singapore seem peaceful, unlike protests and riots in other countries.; July 15, 2008 11:31 PM
Vincent said...: What about people that has savings but keep it in the investment like stock or Unit Trust, during recession. Will they be ok? Hmm, i don't think so. :(; July 16, 2008 12:07 AM
Khiat Han Hwee Adrian said...: Haha. I also hope we can work less and spend more time with family and bear more children.

But I think it will be the other way round. In a recession, employers will want us to work harder to get more business and pay us less saying that times are tough. Less time, more stress, less money, more work....; July 16, 2008 1:13 AM
siewkhim said...: Nothing to worry. Our godly leaders will take care of everything. Amen.; July 16, 2008 12:27 PM
Unknown said...: I think economy is cyclical, we can attest to it like the Great Depression, the Black Monday at DJ, the Asian financial crisis and others, and not forgetting the bull-runs in stock market.
Is this one any significant difference from the past recessions? Perhaps time and facts will tell later. Demand will fall and many companies will have tigher budgets. More will stress on necessity rather than good-to-have, cut down frills.
Going slower may be good so that the economy engine can recover and refresh.; July 16, 2008 3:24 PM
Falcon said...: There are three things that I have learnt from my DAD and I am glad I have learnt them and doing quite well in any recession, past, present and even in the future. I would like to share them here with everyone so you can also weather any recession.
They are:

1. Do not gamble.
2. Do not borrow money.
3. Do not lend money.

I have practiced these three things for over three decades and I have been able to enjoy a good living standard even during recessions. In fact, during a recession, my standard of living goes up because I can enjoy eating in a less crowded restaurant, take a cab more easily and have more friendly cabbies because when demand drops, service standard goes up. I can also go for more spa sessions as these spa companies are offering bigger discounts to attract customers during a recession. Luxury goods and services up their service standards and lower their prices during recessions.; July 16, 2008 7:44 PM
zhummmeng said...: So cash is king during recession and you will be treated like a king wherever you go.
Live frugally and buy prudently and save faithfully.Engage an adviser wisely.
Hang a sign outside your door.
" Snakes and insurance agents are not welcomed"; July 16, 2008 10:26 PM