Recession just around the corner?

[fidorama]

Holy gloom and doomers !! Pretty sure a couple of you guys lamenting on here might not actually be walking the talk. Agreed, probably gonna be another adjustment, as always, but again as always , it'll be area specific in some aspects, and the ones whose head was in the clouds and mind in neutral will suffer. As it should be.
Around here what I notice is the expectation of so many young folks who are fortunate or ambitious or clever enough to enjoy huge incomes. Doesn't always turn out for all of them. The expectation of " I deserve it now" is so much more prevalent and normal rather than " I can afford it now" . Same market swings and interest rate fluctuations as historical trends , just bigger numbers and it seems, less willingness to wait till there's a real ability to afford things , rather than run debt load limits to the max. Every toilet has to be flushed once in a while. Gets full of turds otherwise.

overextending ones credit seems to be getting to be a bigger and bigger problem. As long as you have a steady job its generally not to hard to find a lender willing to give you credit. and personally a few years back I lost a spouse to cancer, and after going thru that, I may have a bit different outlook at some things. Now the way I see it, nobody lives forever, and ultimately it goes by pretty quick and if I cannot afford to buy that bike, quad, or sled outright, but can afford the payment plan, why not??? I may not be around long enough to save up for it, or by that time may not be in any shape to use and enjoy it. there are certainly different ways to look at things like this. I am certainly not telling anyone to go out and max your credit out, or anything, but enjoy life while you can.

 

[maxwell]

overextending ones credit seems to be getting to be a bigger and bigger problem. As long as you have a steady job its generally not to hard to find a lender willing to give you credit. and personally a few years back I lost a spouse to cancer, and after going thru that, I may have a bit different outlook at some things. Now the way I see it, nobody lives forever, and ultimately it goes by pretty quick and if I cannot afford to buy that bike, quad, or sled outright, but can afford the payment plan, why not??? I may not be around long enough to save up for it, or by that time may not be in any shape to use and enjoy it. there are certainly different ways to look at things like this. I am certainly not telling anyone to go out and max your credit out, or anything, but enjoy life while you can.

Well said!!

 

[suzuki_ryder]

overextending ones credit seems to be getting to be a bigger and bigger problem. As long as you have a steady job its generally not to hard to find a lender willing to give you credit. and personally a few years back I lost a spouse to cancer, and after going thru that, I may have a bit different outlook at some things. Now the way I see it, nobody lives forever, and ultimately it goes by pretty quick and if I cannot afford to buy that bike, quad, or sled outright, but can afford the payment plan, why not??? I may not be around long enough to save up for it, or by that time may not be in any shape to use and enjoy it. there are certainly different ways to look at things like this. I am certainly not telling anyone to go out and max your credit out, or anything, but enjoy life while you can.

Agreed. If your going excessive on payments that's a different story (but still not ours to judge).


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[Bogger]

I carry a huge debt load.... but not because of toys or cars or any of that.

When we decided to buy our house we did so knowing it was a forever home and we would rather buy it now than wait 7-10 years and pay 25-30% more.

I don't earn nearly as much as I could because I choose to work local and home every night.... If push came to shove I could go work away from home and have the house paid off in 5-7 years but my kids are still at home and I love my lifestyle so I'm content with the 17 year payment plan and playing with a $15k credit line to manage the upgrades and upkeep of the toys. Nothing is new but we still enjoy it all.

 

[Beels]

overextending ones credit seems to be getting to be a bigger and bigger problem. As long as you have a steady job its generally not to hard to find a lender willing to give you credit. and personally a few years back I lost a spouse to cancer, and after going thru that, I may have a bit different outlook at some things. Now the way I see it, nobody lives forever, and ultimately it goes by pretty quick and if I cannot afford to buy that bike, quad, or sled outright, but can afford the payment plan, why not??? I may not be around long enough to save up for it, or by that time may not be in any shape to use and enjoy it. there are certainly different ways to look at things like this. I am certainly not telling anyone to go out and max your credit out, or anything, but enjoy life while you can.

This...

I've watched far too many people bust their ass their whole lives and never get a chance to slow down and enjoy it, or when they did, they weren't physically able to.

 

[eagle eye]

Everyone know how long a normal market lasts for? 60 months. Everyone know how long it's been? 66.....it's stretched like a rubber band this is the longest it's ever gone. I could give tips and advice but nobody cares lol. Sidenote though a market correction is normally 20-30% and a crash is 50%+ like 08. In 08 it was the usa credit crisis with the housing market that made everything that bad, the usa is actually in way better shape but not if they keep printing Money lol. Good luck

 

[fidorama]

that precisely my point beels, and I m in the same boat as you bogger. looking back now, I should have partied a lot less, and started my mortgage much earlier. But hey, hindsight is 20-20... My toys are not new, but at least I don't currently owe money there. And I cannot imagine not being home every night. Kudo's to those who can live that way, but I don't think I could.

 

[ZRrrr]

Everyone know how long a normal market lasts for? 60 months. Everyone know how long it's been? 66.....it's stretched like a rubber band this is the longest it's ever gone. I could give tips and advice but nobody cares lol. Sidenote though a market correction is normally 20-30% and a crash is 50%+ like 08. In 08 it was the usa credit crisis with the housing market that made everything that bad, the usa is actually in way better shape but not if they keep printing Money lol. Good luck

I'm open to the tips and advice...USA continues to print, as are other countries, and Canada is on a housing bubble.

 

[lilduke]

Yeah man might as well just give the advice,,, So should I invest in Gold or just Guns & Ammo??

 

[800HMX]

Holy gloom and doomers !! Pretty sure a couple of you guys lamenting on here might not actually be walking the talk. Agreed, probably gonna be another adjustment, as always, but again as always , it'll be area specific in some aspects, and the ones whose head was in the clouds and mind in neutral will suffer. As it should be.
Around here what I notice is the expectation of so many young folks who are fortunate or ambitious or clever enough to enjoy huge incomes. Doesn't always turn out for all of them. The expectation of " I deserve it now" is so much more prevalent and normal rather than " I can afford it now" . Same market swings and interest rate fluctuations as historical trends , just bigger numbers and it seems, less willingness to wait till there's a real ability to afford things , rather than run debt load limits to the max. Every toilet has to be flushed once in a while. Gets full of turds otherwise.

Well said! There is opportunity when the market makes it's corrections.

 

[LennyR]

Everyone know how long a normal market lasts for? 60 months. Everyone know how long it's been? 66.....it's stretched like a rubber band this is the longest it's ever gone. I could give tips and advice but nobody cares lol. Sidenote though a market correction is normally 20-30% and a crash is 50%+ like 08. In 08 it was the usa credit crisis with the housing market that made everything that bad, the usa is actually in way better shape but not if they keep printing Money lol. Good luck

Not sure about others, but tips and advice for free I've received a ton of over the years, the free ones have most often been over valued, and a ton of the paid for ones have been suspect at best.
So lets hear them, you have the stage.

 

[S.W.A.T.]

What you do is, burry half your money in a big mayo jar in the back yard and take the other half down to the track and bet it all on the dog that does his business right before the race starts.-- Jeff Foxworthy

 

[fredw]

Seen a new truck at the dealer last week, a fancy tonka truck, sticker over 90 grand... Dealer said today sold to young family with a small kid living out of a condo/apartment .... He has a oil patch job

have we seen this stuff before with our younger generation with the fancy patch job and big truck, and toys... When things go south... And financed to the nuts

 

[rusty]

Very true statement,advice is always based on a biased perception of how a past situation should have went. It never factors/reflects in the present situation. Do nothing/do something the choice is all yours. Your the one whom has to deal with whatever happens.


QUOTE=LennyR;2023901]Not sure about others, but tips and advice for free I've received a ton of over the years, the free ones have most often been over valued, and a ton of the paid for ones have been suspect at best.
So lets hear them, you have the stage.[/QUOTE]

 

[1901306708]

It looks bleak from my vantage point. Not a whole pile of work out there.

CAT bases alot of their forecasting on copper price. just an FYI

 

[sumx54]

The company I work for just bought me a 2015 chev 3500HD today. My old dirtymax was a 2011 with only 160,000 on it and still in wicked shape. Last recession, they made me drive my pickup till 250,000 Kms. Haha. A positive sign perhaps?

 

[STYKO]

N


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[Snowdin]

The company I work for just bought me a 2015 chev 3500HD today. My old dirtymax was a 2011 with only 160,000 on it and still in wicked shape. Last recession, they made me drive my pickup till 250,000 Kms. Haha. A positive sign perhaps?

I hope so Darcy.
My gut is about 98-99% right all the time and it tells me we are going to at the very least have a busy winter.
So cheer up everyone and get out there and spend some money. That's what makes the economy go round and round. Those banks can't survive with out making 8-10 billion per year profit. If you don't spend they don't profit.

 

[deaner]

Its a fine line between living life and being responsible. I dont think there is anything wrong with financing toys, but it totally depends on the situation. If sledding is your passion and you dont happen to have 10 or 15k sitting around to buy one outright......whats a 200 dollar a month payment. But alot of guys take this WAAAYYY too far. Ive known guys making good money in the patch that had 8k a month in payments!! That would have to be so stressful. And the ironic part is they had to work so much to make all of their payments that they didnt get to use the stuff they were making payments on.

Think it also depends on what stage of life you are in too. We just had our second baby. Have the means to get a new sled, really want a new sled, but just cant do it. Setting ourselves up to be able to provide for my family is more important right now. But as we get the mortgage paid off it will leave more room for toys and fun stuff.

 

[800HMX]

A couple thoughts:

A wise man once said "live for today with an eye on tomorrow."

The economy will go up and down - that we know and this is the time when wealth is built. I have always thought that if we live "responsibly" and don't break the bank when times are really good, we shouldn't have to suffer too much when times are not so great. No doubt we are closing in on the end of the up swing!

Keep your options open. When we are forced to make decisions, we may need to make bad decisions. Having hundreds of thousands of dollars of debt spread across property, vehicles, toys and the associated thousands in monthly payments may not look too bad when income is strong, but what happens when it's not all there anymore (when did a truck ever have a value of $80-90k - look at who is buying these - not always the guys with the money). This is especially bad if there is little equity in these assets (say less than 25%). It doesn't take much of a market correction to push the asset into negative equity or worse yet have an appreciable affect on net worth. When forced to sell off stuff at a discount just to make or get rid of payments- this is the time when those out there with a few more "options' can really cash in.