It’s time to get those shears out and start snipping. The cost of living and levels of inflation that are making us so uptight are making their malevolent presence known.
Let’s not forget the dreaded “R” word which we have heard on TV and seen in the papers…RECESSION. Apparently, we are in the midst of one.
Now here is a new word I just learned… “Stagflation.” According to money market managers at Reuters, “stagflation” is a combination of stagnation and inflation, which translates to periods of rising prices coupled with stalled growth.
As some or most of you know, the housing industry is hurting right now. It’s really hard to sell a house! Some of you struggling to unload your properties may have to throw in a car or two, maybe an SUV and a Harley to entice buyers to fork over their precious dollars. In other words, you will have to INFLATE your house, or it will STAGNATE.
The fact of the matter is, after five years of steady growth, the U.S. economy has slowed dramatically, in part because the collapse of a speculative bubble in housing. In many markets, home prices that had nearly doubled from 2002 to 2005 have subsequently declined by up to 30 percent.
Furthermore, the troubles in the U.S. housing sector spilled over into global markets last August, causing a severe contraction in credit and billions of dollars in bank losses.
I am no Economist and I didn’t stay at a Holiday Inn Express last night, but all that talk makes me very self-conscious about my money. Stagflation? I don’t want any part of that noise!
What can I do in the meantime to ride this stagflated recession out?
· Play Powerball: Someone’s gotta win—why not me?
· Share your Pet’s food: Most of the stuff in dog food is good eats!
· Work Three Jobs: If I work 24x7, I will be less distracted to spend money.
· Monopoly $: Pay my kid’s allowance with Monopoly money—does he really know the difference?
· Hitchhike to work: Use someone else’s gas, give them 1990’s Chuck-E-Cheez tokens as a thank-you gesture.
· Heat ‘N Eat: bring your grill indoors and light it—you can cook and be warm, thus killing two birds with one stone.
· Re-use Water: Leave the bath water in the tub and just add more soap each time!
Now there is good news and a happy ending to all of this. According to the National Bureau of Economic Research, the U.S. economy cycles through regular intervals of expansion and contraction. Typically, after a recession that lasts, on average, between six months to two years, the economy expands for a period of six to ten years.
In the meantime, learn what you can to avoid the evil grip of stagflation. Put the “recess” back into “recession” and have some fun!
Let’s not forget the dreaded “R” word which we have heard on TV and seen in the papers…RECESSION. Apparently, we are in the midst of one.
Now here is a new word I just learned… “Stagflation.” According to money market managers at Reuters, “stagflation” is a combination of stagnation and inflation, which translates to periods of rising prices coupled with stalled growth.
As some or most of you know, the housing industry is hurting right now. It’s really hard to sell a house! Some of you struggling to unload your properties may have to throw in a car or two, maybe an SUV and a Harley to entice buyers to fork over their precious dollars. In other words, you will have to INFLATE your house, or it will STAGNATE.
The fact of the matter is, after five years of steady growth, the U.S. economy has slowed dramatically, in part because the collapse of a speculative bubble in housing. In many markets, home prices that had nearly doubled from 2002 to 2005 have subsequently declined by up to 30 percent.
Furthermore, the troubles in the U.S. housing sector spilled over into global markets last August, causing a severe contraction in credit and billions of dollars in bank losses.
I am no Economist and I didn’t stay at a Holiday Inn Express last night, but all that talk makes me very self-conscious about my money. Stagflation? I don’t want any part of that noise!
What can I do in the meantime to ride this stagflated recession out?
· Play Powerball: Someone’s gotta win—why not me?
· Share your Pet’s food: Most of the stuff in dog food is good eats!
· Work Three Jobs: If I work 24x7, I will be less distracted to spend money.
· Monopoly $: Pay my kid’s allowance with Monopoly money—does he really know the difference?
· Hitchhike to work: Use someone else’s gas, give them 1990’s Chuck-E-Cheez tokens as a thank-you gesture.
· Heat ‘N Eat: bring your grill indoors and light it—you can cook and be warm, thus killing two birds with one stone.
· Re-use Water: Leave the bath water in the tub and just add more soap each time!
Now there is good news and a happy ending to all of this. According to the National Bureau of Economic Research, the U.S. economy cycles through regular intervals of expansion and contraction. Typically, after a recession that lasts, on average, between six months to two years, the economy expands for a period of six to ten years.
In the meantime, learn what you can to avoid the evil grip of stagflation. Put the “recess” back into “recession” and have some fun!
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