I'm going to enjoy changing my lifestyle over the next 18 months as the economy goes south. Why? Because I was always one of those people who wondered how the hell anybody could make money with a Jamaba Juice franchise. And of course I resent those people who do, slightly. Now they're going to be out on the street and the buildings they occupy are going to be converted into eBay intermediaries, because everybody is going to have yard sales to raise cash. Maybe.
Yesterday's economic lesson was that we should expect GDP growth to be down to 2% from 4% and nothing opens up until this time next year when the unemployment target for Deutche Bank is about 7.4%. Sounds like 2003. Well 2003 was a horrid year for me when I was the brokest I've been since college - I ended up doing some housepainting to keep things alive. All props to Greg M, thanks for the work brother. I'm still not resentful of the Jamba-preneurs to make the tax code punitively progressive, as Mr. Obama would. I find it highly disrespectful at best. All that said, what goes around comes around and we don't need any assistance in bringing the mighty low, the economy does that in its cycles and unpredictability, and quite frankly you never know when you need somebody with wealth. Seems to me these are just those times. But I digress.
Apparently something around 70% of GDP is consumer spending. It's rather astounding when you think of it. 17% is investment and 19% is government spending according to the Hoover Institute (Net Exports are -6%) In this economy, it's an open question as to how long 70% is going to be consistent going forward. Tom Keene was asking if we dip two or three points on that figure. Yeah I can cut back. In fact I ought to think about how I spend my moola a bit closer. How can I save more, cut my spending and increase my savings?
I've been increasing my savings and staying out of the market all year. That has been my plan, as well as to get the job that I now have. So far everything has worked out very well. Because I've working on the broad strokes, I haven't focused on the details so much, but now it's time to get out ahead of that and deal with the short game. That means more WalMart and less Target. That means more home cooked meals and less Panda Express. And in those home meals, it means a higher percentage of soup and sandwiches. It means fewer first run movies and fewer DVDs. It means more exercise and fewer new clothes. It also may mean that I swap out the Transporter for some more pedestrian transportation, which interestingly might mean a Hummer, because those badboys are selling pretty cheap right now. I've got to make that change soon before people realize that oil is at a 13 month low, around 75 bucks a barrel.
What are you doing to tighten the belt?
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