what happens if there is a recession

[luckyman]

what happens? i cannot remember the last recession in early 90,s

[buildersmate]

1) Individuals and business slow down their expenditure.
2) Businesses have a reduced turnover.
3) Reduced turnover lowers the amount of money provided in individuals' pay-packets or shareholders' dividends. Some businesses shed some labour, further limiting individuals' money.
5) Government has lower income from tax take because of 3) above
6) Government either has to cut-back on expenditure or run a balance of payments deficit.
7) Return to 1) above.
4) a

[The Builder]

Hi Lucky............my Mate's analysis is spot on..............but there is an upside though..................as people begin to feel a little insecure.............
1 people start answering emails..........
2 in our job........it takes LESS than three months to order a window
3 you can actually get a quote from someone
4 sub-contractors start talking to you again

We're not very good at booms in this country.....................but we're pretty good at slowdowns.......................a couple of years down the line................and it all comes around again.....................

DON'T PANIC

:o)

[luckyman]

i was thinking of getting in on a business venture and now this talk of a world recession on the news everyday is making me worried...worried about my job,my future,everything,i allways think the worst anyway but one cannot help it when its never off the news,,,anyway i dont know too much about how the world works or politics,economics etc so will we/uk be ok in few yrs,housing market pick up again...price of oil go down ? cost of living and everything has suddenly crept up and im also worried i wont be able to live the life i have lived untill recently i.e holidays to thailand and europe,,,cant get a ticket now for under 700 quid....compared to 4-500 2 yrs ago...was told they will rocket even further still in the coming yr...anyway what does future hold...some views please....

[WoWo]

In summary, we have all lived the high life over the last decade or so, riding on the cheap credit gravy train. Unfortunately it had to be paid back at some point and that time is now.

Personally I saw it coming a few years ago and so took steps to protect myself, however it seems most of the rest of the country were happy to stick their head in the sand and carry on with the good times, which will only make it worse in the longer run.

What we should have had is a short sharp shock a few years ago, but we didn't and will pay for it in the coming years.

[Whoever]

If you are seriously worried about a recession the last thing you should be doing is risking money you can't afford to lose by putting it into some business venture. That of course won't encourage the economy to turn round again if we all stop spending and investing, but our prime responsibility to look after our own interests first. If you're worried about your job, stop spending and put every spare penny you can in your "emergency savings account". It you are subsequent made redundant it might end up being one of the best decisions you ever made. Having lived through various redundancy situations in our family, I can tell you that having a little money put away for a rainy day gave great peace of mind in some very stressful situations.

[jno]

air fares are on the way up and probably won't come back down even if oil prices ease off a bit. As for a new business, it'll depend what sort of business. I wouldn't do it, but then I am not entrepreneurial material.