The Great(?) Depression of the 21st Century

Reading the newspapers of the last six months, one would get the impression that all the action lay in the business section.

Day after day, we’ve been fed data that suggests that we are in the midst of a recession that will rival the Great Depression of the 1930s. Some experts(who seem to appear on all channels, speaking the same words again) have claimed that this is the BIG ONE!!! That doomsday is at hand.

Rchi has a rule of the thumb. Which says that if there is an earth shattering announcement on page one, the real news will lie on page 4 of the following day.

Of course we all know there is massive inflation in the economy. Of course the prices of commodities have risen to ridiculous levels. But my point is, prices always rise over a working cycle of a generation.

To wit, let me quote my dad, who never ceases to point out – “ You youngsters have a starting monthly salary, that equals my annual salary, in my mid career stage.”

To which I point out – “ Uh Yeah dad. But your starting monthly salary, was probably greater than grandpa’s annual salary”

Prices rise, with rising income levels, which ensure that no matter how much the middle class earns, things which are considered ‘a luxury’ (middle class speak, dear Armani toting reader), remain in the realm of luxury, no matter what your income is.

The golden rules still apply from the dinosaurs age –

• ·         SAVE as much as you can.
  
• ·         If any item has more than 3 zeros, ignore it
  
• ·         If you don’t have the cash for it, ignore it
  
• ·         Credit cards are a taboo
  
• ·         Always Ask – Do I ABSOLUTELY need this
  

The last one is the most painful, but the most important nevertheless.

Of course, the haves will always be sheltered from the ‘The Devastating Effects of a Slowing Economy’™

Me? I will continue to burn in envy, every time I see that Ferrari whiz past, with a Rolex hanging out of the window