The economy is going in the toilet?

Question

Do you think that the economy is going in the toilet, I do and what does that mean and what can I do to protect my family?

Answer 1

When Economists conduct analytical studies, they usually look for indicators on how any economy is performing. I was mildly surprised yesterday to hear that General Motors is selling assets to raise 16 Billion dollars for operating costs. This American icon also faces short term liquidity problems because it can't pay wages. The effect is disastrous. Thousands of jobs need to be shed in order to cut back on expenditure. This is the language of insolvency! If an organisational giant like General Motors cannot sustain itself, the economy is most certainly headed in the wrong direction. Regarding protection for your family, assuming that you are unemployed and debt free, I think you have a substantial amount of savings if used wisely to support your family and see this recession through. On the other hand, if your mortgage is substantial and you are unemployed, use those savings wisely. This means no family holidays to Jamaica etc. Thank you for asking. Good luck

Answer 2

It was worse in the 70s,I remember,hang in there and for good sakes dont draw all of your investments out,it will pass

Answer 3

It means that there's going to be some tough times ahead of us, and there is little you can do to protect your family, but here are some ideas:

You can possibly, if you are currently working, get a part-time job at McDonald's or something like that.

You can buy less expensive food, meaning cut back on steaks and seasonal produce.

You can save gas [[and the environment!]] by walking, riding a bike, or carpooling.

You can buy economical lightbulbs that last longer and use less energy.

You can skip on designer brands and instead make your own clothes or shop at a thrift store.

And those are just a few off the top of my head!

Answer 4

It's already in the toilet....we're just waiting for the big flush

Answer 5

The economy is in a down cycle, but it is not in "the toilet." Unemployment is not in double-digits, inflation is relatively low, and goods are still abundant.

How do you protect your family? Cut down on unnecessary driving and other expenditures. Spend wisely, but don't alter your life a great deal. Reduce debt as much as possible. Remember that any investments you have are for the long term, and don't panic.