Penny Pincher

Article by: Tianna | October 10, 2008 - 12:19 am |

Politics

Forgive me of my ignorance, I am still trying to understand the economy "crisis" that "isn't"threatening Candians but is being talked about in a discreet manner.

It seems obvious to me there is an overwhelming fear taking over the Canadian consumer lately and most businesses are being affected as a result.

Could the fear of a recession cause consumers to create a recession by pinching pennies, therefore making the market suffer? Is this something that can be avoided by witnessing the examples of the past and/or current markets in surrounding economies?

I am not claiming to know these answers, I am only concerned that the correct questions are being asked. Someday I hope to walk into a bank and recieve a mortgage to buy my first home, where I can begin to build equity, and establish assets to begin to create a secure future for myself and my family, and I would like to know that I will be capable of doing so when the time is right.
It is disturbing to think I should hold off until the finacial threats pass but it also gives me incentive to save for more of a downpayment.

Perhaps one day people will shop again, not question the cost of a haircut and housing values will begin to increase.Me... I'm saving for a rainy a day.

Mo knows Housing

Comment by: mo_money on Fri, 10/10/2008 - 12:39 am

Basically the so called crisis you are refering to is the American economy, which does affect the Canadian economy. The reason for it is mainly to do with housing. Allot of houses were built but not many sold. When the housing market is in turmoil so is the economy. Imagine if you had your own company that made widows. Each month you make 1000 windows and usually you sell about 800 of those by months end. Now what if one month came along and you sold only 500 of the 100 windows you made for that month. you have half left over. normally you wouldn't make 100 windows the next month as you have allot of windows left over in your stock pile. But you kept making 100 windows each month (which costs money) but kept only selling half of them... That is the American economy... To many homes and not enough buyers.

I understand that concept of

Comment by: Tianna on Sun, 10/12/2008 - 10:29 pm

I understand that concept of about the American economy but what I was referring to is the Canadian economy. I had noticed an article online about it and what seems to be happening is the fear of whats happening in America has Canadians worrying about what "could" happen here. There are whispers of a recession and people are holding off on spending, which is affecting our dollar,and the credit available to consumers...in turn our mortgages will be harder to get. Canadian banks are currently the most stable, but our consumers are not. I sell for a living and have noticed everyone holding back on spending. The threat of a recession is creating a recession. Canadians need to keep the cash flow going in order to avoid anyone from going under.

Looks as if we might have a

Comment by: walker2238 on Thu, 10/16/2008 - 12:38 am

Looks as if we might have a modern day depression. Wait, wait! I take that back just pushed the panic button. But having said that our economy is tied with the US of A. Most of our media comes from south of the border. And you could argue free trade doesn't help this issue. I don't really think free trade helps anything. Who ever signed off on that? I do think this is just a fade. People like to wait things out and on the good side of this... Christmas is just around the corner. I feel in a month from now this will be nothing more than a after thought for us Canadians.

P.S Mo I love your picture...

Do you remember what the

Comment by: mo_money on Thu, 10/16/2008 - 3:26 am

Do you remember what the article was called? The one you remember reading?

Penny Pincher

Tell a Friend