Quote:
Originally Posted by BlackArcher101
It's what the goverments are trying to prevent, but once it starts, it will balloon and eventually will put us neck deep in a recession. Who knows, maybe touch on depression.
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Yes it's true. But what's happening right now is exactly this, battoning down the hatches. Yes some will need their reserve funds, but even in a 10% unemployment rate scenerio that's still a vast majority of people working in jobs. The ones that manage to stay employed will delever themselves by paying down debt and living frugally. In a years time you'll find that a good chunk of those who maintain employment will have not only paid down the debt significantly, but will also have a lot of free cash and confidence to spend it, and then the cycle starts recovery and those who were not so lucky will start finding jobs again. This will last 1-1.5 years. Everyone, make plans to get through this. If you do you'll come out the other end a better person for it.
Public sector people. Don't think you're immune either. The province of Alberta is even operating under a deficit this coming year, What does that say about finances at the municipal level? An otherwise docile electerate gets pretty hostle when they are out on their arse on the street or fighting to keep their job while their taxes remain high (or even higher with planned increases each year) to keep a bloated workforce and fund new perks for employees. October 2010 isn't going to be the same old same old come election time. After recession times, free-spending dreamer types will not be re-elected to public office.