XJO 0.12% 5,998.7 s&p/asx 200

just how bad will this ression be, page-40

  1. 3,452 Posts.
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    Hey bodyistemple,

    I am also in my 30's. I was lucky enough to get a job early 90's as I knew my parents could not afford the uni bills. They had hard enough a time with 17% interest and bringing up three mature boys, a new baby and a house extension.

    Mate it was not easy on $13,000 a year and 4 nights a week at uni and a part time job on top. However, these were some of the best years of my life.

    What I learnt then has got me to where I am today and I don't really fear a recession. You cannot rely on bull markets etc, but invest in yourself. I had friends who thought I was mad turning down higher paid jobs at various times during my carreer. But now I believe I am in a secure environment where any downturn will not materially effect me (though I still need to work hard).

    The problem is many in the 30's have had no experience with what is happening and believe good times just keep rolling. The truth is we have had an extended period of a credit induced bubble which is bursting (living beyond our means). Essentially, IMO we have been living beyond the level of real production for way to long.

    Last point, is that I believe it is wrong to say money is cheap. Interest rates are low to try and flush out the cash. To try and get that cash is another story. Just try and go to the bank for a loan and see the hurdles you now have to jump to get it. Interest rates are cheap, the cost of credit (the conditions) are much higher.

    There is no reason to be poor, however you need to be smart. Like any cycle, recessions provide opportunity for those who are prepared to take the necessary risks, adapt their thinking and shake of the gloom IMO.

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