Current Affairs Cost of living…

[cronullasharks]

Oh no, I don't disagree, but appearing to be more available than others can often backfire.

If you make out you're dead busy and can squeeze them in they're more appreciative.

Basically if you don't come across as someone trying to rort the customer or just plain arrogant (which I can tell you're neither) you'll be right. Word of mouth is better than any advertising in your field I reckon.

 

[Spadge Vernacular]

What does a recession actually mean and what impact will we see?

When an economy contracts, it indicates reduced consumer spending, creating a downward spiral. This impacts businesses, leading to decreased production, reduced spending on staff, and ultimately, fewer people working. Fewer people working, less goods less investment in staff and growth. This scenario contrasts with the Keynesian multiplier effect, as it results in a reverse cycle with declining goods sold. A recession is generally defined as a fall in GDP in to successive quarters which is indicative of the cycle described above.

 

[Rita_Poon]

When an economy contracts, it indicates reduced consumer spending, creating a downward spiral. This impacts businesses, leading to decreased production, reduced spending on staff, and ultimately, fewer people working. Fewer people working, less goods less investment in staff and growth. This scenario contrasts with the Keynesian multiplier effect, as it results in a reverse cycle with declining goods sold. A recession is generally defined as a fall in GDP in to successive quarters which is indicative of the cycle described above.

Makes borrowing vs long terms bonds more expensive as well?

 

[Spadge Vernacular]

Makes borrowing vs long terms bonds more expensive as well?

Finance is t my area but I would say that in a recession, borrowing can become cheaper because interest rates tend to go down. That said interest rates are still high compared to a few years back when we bounced around the zero mark.

However, if you're thinking about investing in long-term bonds, they might become more expensive because many people flock to them as a safer option during tough economic times, which can drive up their prices and lower their returns.
Similar for gold and than like.

 

[Rook]

today in Karma, thank you for coming through

 

[orchard]

 

[Baines' left foot]

Basically if you don't come across as someone trying to rort the customer or just plain arrogant (which I can tell you're neither) you'll be right. Word of mouth is better than any advertising in your field I reckon.

For sure. When I speak with potential customers they more often than not take me on.

It’s working with other builders that’s been the bigger issue. At the risk of sounding elitist, as a result of my corporate construction experience I like to work in a certain way. So many of them treat the work like it’s an inconvenience, cutting corners and have terrible organisation.

When I get a job of my own it’s bliss.

 

[DuuuncanHadaPigeon]

Finance is t my area but I would say that in a recession, borrowing can become cheaper because interest rates tend to go down. That said interest rates are still high compared to a few years back when we bounced around the zero mark.

However, if you're thinking about investing in long-term bonds, they might become more expensive because many people flock to them as a safer option during tough economic times, which can drive up their prices and lower their returns.
Similar for gold and than like.

Bond prices are inverse to the interest rates

 

[cronullasharks]

When an economy contracts, it indicates reduced consumer spending, creating a downward spiral. This impacts businesses, leading to decreased production, reduced spending on staff, and ultimately, fewer people working. Fewer people working, less goods less investment in staff and growth. This scenario contrasts with the Keynesian multiplier effect, as it results in a reverse cycle with declining goods sold. A recession is generally defined as a fall in GDP in to successive quarters which is indicative of the cycle described above.

What gets me and I could be wide of the mark here, interest rates are going up and up and up to wind inflation in. Now to me this is squeezing the lemon drier than dry as most people with a mortgage don't have money to throw around anyway. Also if its to stop people spending money on "luxuries" such as haircuts or meals out why is it this money then goes to banks and not other businesses where it is spent normally. To me its just banks increasing profits in a completely legal matter that amounts to completely legal theft whilst businesses go under.

 

[Spadge Vernacular]

What gets me and I could be wide of the mark here, interest rates are going up and up and up to wind inflation in. Now to me this is squeezing the lemon drier than dry as most people with a mortgage don't have money to throw around anyway. Also if its to stop people spending money on "luxuries" such as haircuts or meals out why is it this money then goes to banks and not other businesses where it is spent normally. To me its just banks increasing profits in a completely legal matter that amounts to completely legal theft whilst businesses go under.

Aye, under the tory watch profiteering is a problem.

Edit: It has come under some scrutiny from the press as per this https://www.theguardian.com/busines...R,price increases – often dubbed greedflation.

 

[WA Toffee]

What gets me and I could be wide of the mark here, interest rates are going up and up and up to wind inflation in. Now to me this is squeezing the lemon drier than dry as most people with a mortgage don't have money to throw around anyway. Also if its to stop people spending money on "luxuries" such as haircuts or meals out why is it this money then goes to banks and not other businesses where it is spent normally. To me its just banks increasing profits in a completely legal matter that amounts to completely legal theft whilst businesses go under.

In Australia the reserve bank has been tasked by government to keep inflation between 2 and 3%. The only tool the government has allowed it to use to achieve this is setting the official rate. (This is not a liberal v labor thing, it is a long term charter of the reserve bank)

If inflation is above 3%, rates go up, below 2% they go down. And it used to work well when there wasn't such a wealth gap as there currently is.

There has been a fair bit of talk recently about both the 2-3% window, and giving the reserve bank other levers to pull, as the recent rate rises since Covid haven't slowed inflation as they used to, which is primarily due to the boomers and some Gen X being mortgage free so the rate rises actually give them more disposable income

 

[NilSatisOptimum]

Aye, under the tory watch profiteering is a problem.

Edit: It has come under some scrutiny from the press as per this https://www.theguardian.com/busines...R,price increases – often dubbed greedflation.

Price controls would be useful tool for Government to use when greedflation becomes widespread.

 

[cronullasharks]

In Australia the reserve bank has been tasked by government to keep inflation between 2 and 3%. The only tool the government has allowed it to use to achieve this is setting the official rate. (This is not a liberal v labor thing, it is a long term charter of the reserve bank)

If inflation is above 3%, rates go up, below 2% they go down. And it used to work well when there wasn't such a wealth gap as there currently is.

There has been a fair bit of talk recently about both the 2-3% window, and giving the reserve bank other levers to pull, as the recent rate rises since Covid haven't slowed inflation as they used to, which is primarily due to the boomers and some Gen X being mortgage free so the rate rises actually give them more disposable income

That last bit is spot on, I'm not going to jump on the boomers are the problem bandwagon as good luck to them if they've done well with their money. It's the systems in place that are heaping misery on people who by all rights should be quite comfortable in life and it's completely out of their control. It also makes my blood boil that house ownership is out of reach for ordinary Australians under the age of 30.

 

[summerisle]

Good job I don't like them, did like the fruit polos though.

 

[Tipp blue]

Makes borrowing vs long terms bonds more expensive as well?

Yup.. the time for borrowing was late 2022/early 2023... high inflation is a great time to borrow.