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How can we mitigate the potential for a double dip recession?

Started by scsmith42, March 13, 2011, 03:40:08 PM

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LOGDOG

You're right SD. When I lived in Brooklyn, NY for a short while I walked everywhere or took the train. (I did some volunteer work out there for a while.) Most of the time we hoofed it. We'd actually walk from Brooklyn, across the Brooklyn bridge and go to China Town and Manhattan almost every other night. I was 19 then though. I remember how tight my calves were from all the walking. I wasn't used to it. At least not on asphalt.  But out there, even "parking" a car costs a bunch of money because there are so few places to park. So people that had cars kept them in lots that had security guards. Seemed like a hassle.

You know I heard a statistic on the radio the other day. They said that 1 in 5 males between the age of 25 and 50 willfully DO NOT go to work everyday. That's 20% of the male population. Because it's been such a prolonged trend, it also doesn't show up in the unemployment numbers to the extent that it should. You have to know these guys aren't focused on their future because if they were they'd be out taking measures to make sure their futures were secure. That alone would help boost the economy. I'm not sure what the percentage of adult males in the American population of 300+Million equates to but I have to think it's significant. There has to be something they can contribute.

On the double dip recession ... It seems just a week or two ago they said that it's official ...housing in the U.S. has hit a double dip. It'll likely be soft for an extended period yet. I'm very, very curious to see what happens after June 30th when QE2 ends and they stop pumping fake money into the economy. Will it keep running under it's own power at the same pace it has been? Or will it do a nose dive? It will be interesting for sure.

pigman

Quote from: SwampDonkey on May 20, 2011, 03:55:46 AM
Interest rates for vehicle financing are low. Most will finance a vehicle even if they have lots of money.
Interest rates around here for a new vehicle run about 6.5 %. CDs are paying 1.5% on a 5 year note.  Someone with a lot of money is  silly to finance a car and have money in a CD. I know , they advertise 0% interest rates on vehicles, but you can pay cash and get the asking price lowered by $1500 to $2000. I am too poor to loose 5% on my money.
Things turn out best for people who make the best of how things turn out.

SwampDonkey

Actually, depends on where you buy a vehicle to. I can save $1500-$3500, in my experience, if I don't buy one locally. Same vehicle. Or get more on trade. :D
"No amount of belief makes something a fact." James Randi

1 Thessalonians 5:21

2020 Polaris Ranger 570 to forward firewood, Husqvarna 555 XT Pro, Stihl FS560 clearing saw and continuously thinning my ground, on the side. Grow them trees. (((o)))

LOGDOG

I actually sold vehicles for a year and a half and almost bought a car dealership in WI. Truth be told, you can get the discount without paying cash, and in fact we'd be more likely to discount the vehicle if you were going to finance it with us because we made money on the financing end. A cash deal is not a money maker for the dealership.

All that said, my opinion has been "pay cash for depreciating assets and only finance assets that appreciate in value or have positive cash flow(to help offset interest you pay.)

Have any of you read Robert Kiyosaki's books? One in particular "Cash Flow Quadrant" makes a person think about when and how to finance assets. I've enjoyed all of his books.

pigman

QuoteA cash deal is not a money maker for the dealership.
Any deal that is a better money maker for the dealer is a deal that takes money out of the pocket of the customer. ;D
Things turn out best for people who make the best of how things turn out.

Raider Bill

Actually the sale of a new car is one of the lower profits in a dealership not all but most mainstream dealers anyway. The biggest money is in the fiance and insurance dept followed by used car sales then parts and service. New is mostly on the bottom. They sell new to get the other money in the door.
The First 70 years of childhood is always the hardest.

Kansas

One thing I always do when we trade New Holland skid steers is make sure we get the insurance through them. Its cheaper than through my regular policy by quite a bit.  The other nice thing is if we pay one off, we can keep the insurance going. We also do use them for financing. I know that those low teaser rates that we pay causes a higher price for the machine. But it still turns out to be a pretty decent deal.

Cedarman

Besides, the banks laughed at us when we went to borrow money for machinery.  The companies worked with us just fine, even gave us a credit line for parts and repairs. (They should considering they gold plated everything)
I am in the pink when sawing cedar.

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