As some people may of read in the papers today, that people are thinking were heading into a recession and as the FTSE index fell by almost 20% in a day reducing the value of the stock market by £77billion. Do you think its still ok to invest your money in to products that you plan to be selling for you business. With people loosing money and so not purchasing goods, do you think its still the write time to still be purchasing large bulk items???
Just wanted someones opinion on this, and how it might effect the wholesalers and retailers
Last edited by zippernipper : 22-01-2008 at 09:05 AM.
Reason: wrong fact was placed
Probably not a good idea to get a mortgage at the moment for stuff like buy to let etc. I don't think that FTSE is going to affect your Xbox Wireless Network Kit sales just yet.
Rising unemployment and a further tightening of credit is what you need to look out for! Brown has built this economy on credit - there comes a time when no-more can be borrowed and pay back time arrives...that's when your UK sales MAY be affected.
Keep your eye out for the following that indicates that the economy is in trouble:
* Location, Location, Location gets pulled from the TV
* Sad Loans/Credit Card/Sub Prime Loans adverts get pulled from the TV
* Former Estate Agents suddenly start appearing on these forums to enquire on wholesale house buying in China
* The US and UK start a war with Iran to distract us all from realistic house prices and the negative equity affecting those who bought at unrealistic prices but listened and swallowed the boom-time phrase of "it's different this time".
I'm sure they're others that can think of more...
Last edited by drum_dude : 22-01-2008 at 09:20 AM.
Reason: spelling
Drum by what you have said, the US economy is in trouble now (even though we all know it's heading for an iceberg). The US is trying to provoke conflict with Iran because of the speedboat supposedly belonging to the "Iranian Naval Forces." Come on, a speedboat is part of a billion dollar navy? I've seen no sub-prime mortgage commercials in a while, yet secured credit card commercials are on the rise. I was always told to watch grocery prices because if they fluctuate too badly, something bad is a-brewin. And so far it's been proven right; milk has rose about $.30 a gallon where I live, and so has a lot of other foods. It's an old saying, probably left over from the Depression, but it seems to be holding steady...
This country is going into a recession, I have no doubt of that. But a recession is not always bad news for businesses. It tends to route out the bad businesses but leave the good ones standing.
IMO it won't be as bad as what's happening in The US but when the US sneezes.......
Today, China stock markets has more than 1000 stocks slumped 10%, the highest daily drop margin. People are worried that the worsening subprime crisis may lead to a US economic recession. This would reduce global demand of Chinese products. Recently, thousands of export oriented factories went bankrupcies in Guangdong delta areas, laid off a great number of employees.
Food prices and fuel prices in the UK are on the rise too!
I dont understand that? Despite doing Economics, why is food prices such as rice increasing despite the fact there is BIG asian companys producing vast quantites? Whats happend to this sector? Its quite interesting...
Recession Fears!
Linear Mode
October 2008
