Can you profit from a recession?
A word of caution
And a glimmer of hope
I know it seems like we ’re just getting out of one of the worst economic downturns in our lifetimes, but another one could be right around the corner – and it could be much worse than the one we just escaped.
A lot of people post updates to their blogs to drive people to their websites and give themselves or their businesses more credibility, and that’s fine. But I’m writing this time because Ellie and I truly care about all of our family and friends and everyone in our community of Fort Smith. We want to see people triumph in hard economic times.
The point of this post is simple:
You might wonder why someone in real estate would say this, when it could perhaps steer people away from buying or selling with him – especially here in Arkansas, a state that has fared relatively well in the recent economic fiasco. How well it will fare in the years to come, however, remains to be seen.
The great state of Arkansas is one of only a few states with a balanced budget and a surplus. Whether a Republican or a Democrat has been in charge, we’ve always been pretty much conservative by nature, and this has served us very well.
More specifically, here in the River Valley, we were fortunate to be the last ones into the recent recession and the first ones out of it. The majority of our local population never even felt the effects of the economic problems.
But if another, bigger recession comes, we will feel it – particularly if we love and embrace debt instead of avoiding it.
Gold = money. Paper = paper.
How did the last recession happen? It happened because we as a country are broke. We’re maxed out. In the not-too-distant future, it may get to the point where we average citizens can’t borrow any more money, because the rest of the world is pretty much broke, too.
Our currency is no longer backed by gold, and we’ve been doing nothing but printing more money, and the only thing that has accomplished is buying more time. As children, we thought if you needed money, you could just print it. Today we know better.
So what can we do? We can look closely at our finances right now. This is a good time to come up with a plan for paying off debt. Specifically, it’s a great time to devise strategies to pay off secured debts before non-secured debts.
Also: create a plan to have cash on hand in case a situation arises where you can profit from a downfall, such as another stock market crash, low-priced silver or an excellent deal in real estate.
If you’re barely getting by, don’t take big risks. That includes avoiding “deals” like those above, which are good investments if you have some cash, but potential financial suicide if you’re living low. If you need more money, get it before you spend it.
The Media is not here to help you
Why aren’t we being warned about a potential financial crisis that could make the one we just got out of seem like losing a $2 bet? Well, the Media isn’t the same media we grew up with. It’s an interest-business nowadays.
Truth is mixed with hype in most news reports. Special interest is mixed with just enough people-interest to make folks think the Media is here to help us, which it is not. Powerful news agencies speak what Big Business and Big Government want them to speak.
But don’t panic yet. We’re all in this together, and we’re still the greatest nation with the greatest people in the world. I believe there’s something positive in every situation. This economic drop can be an outstanding opportunity for us as a People to reset our values and take back control of our financial lives.
At the moment, we feel a little secluded from our neighbors, separated, if you will. But we’re NOT separated. We’re together. We’ve just focused on “keeping up with the Joneses” instead of getting to know them. We want to buy everything bigger and better and more expensive. Kids are being raised on video games. Families barely know one another.
Change is always possible
We can change it when we’re ready. We can opt for more sensible-sized homes, we can have kids who play and interact in real-time out in the front yard rather than sitting on a couch and holding a gadget. We can get to know our neighbors, re-learn to communicate one-on-one, work together instead of against.
Are the values our great country enjoyed back in the 1940s and 1950s just a dream? Merle Haggard once sang:
Are we rolling downhill like a snowball headed for hell
With no kind of chance for the flag or the Liberty Bell?
Wish a Ford and a Chevy could still last ten years, like they should
Is the best of the free life behind us now?
Are the good times really over for good?
Ellie and I don’t think the good times are over. We trust you have the same hope and faith in the American People to pull it together and get back to what really matters.
The main point – be prepared, but don’t be scared. You’re about to start hearing a lot of fear-mongering from the Media. Some of it will be truth, most of it will not. You have to be discerning. Get yourself ready to take advantage of situations and profit from them. And remember: even though you don’t hear a lot about it, there were people who became millionaires and billionaires during the Great Depression of the 1930s.
The truth is, there are people who can get rich in ANY economy. You can be one of them. And America itself can be one of them, if the people wake up and start making wise choices based on fact instead of what they’ve been told by sources that don’t have their best interests at heart.
- Nick Glidewell's blog
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