Thursday, August 11, 2011

Just Desserts?
















In wondering about the concerns regarding a double-dip recession, as being so worried it could have us to miss our scoop of expansion in between, thinking perhaps it might be best to consider giving up deserts altogether and rather ask our political leaders, captains of industry and financiers:

“where’s the beef” !

Incidentally, I did mean deserts and not desserts; that is at least for all practical purposes ;-)

3 comments:

Plato said...

Hi Phil,

I actually peruse some economical experts discussions so as to get the flavor of the times.

Austerity programs in the face of a recession in terms of our Government spending seems to be a counter productive move as this provides for more loss of jobs and in long run signals and affects consumer confidence.

On it's own many are now tallying their pennies instead of buying those extra desserts and where the beef is an extreme luxury right now.

More people have been corralled to minimum wages and no benefits which make it extremely hard for young people to survive in the cathedral market place.

These are not signals I myself project but are signals coming from the consumers them self. I suppose one should have consumer spending index as to this statement above as data may be contrary to what I am saying.

So yes indeed....where's the beef...left alone, one need not ask what that desert is.:)

Best,

Phil Warnell said...

Hi Plato,

My thoughts being particularly in the US no one is certain who is minding the store or if the ones who are suppose to even care. As you know I’ve always been one to understand that actions speak louder than words, having my assessment being there is no indication of concessive action and the words offered thus far even worse than those of Marie Antoinette’s when it came to her people’s just desserts being ”let them eat cake”. In this case I find their words can be equated as follows:

” Let them eat ice cream having a hearty two scoops (double dip) of recession”

All I can hope for is they are better versed in history than they appear to be in economics, as the people do in time find cutting edge solutions when it comes to matters of just desserts:-)


Best,

Phil

Plato said...

Hi Phil,

The whole economic thing is hard to watch....

It has been said the "triple A rating" was given to the very banks that went under and had to be bailed out. The banks supposed paid for these classifications....and well you know the rest of it.

I do believe we have fared well in Canada....but still consumer confidence is down and people have implemented their own austerity programs. The good thing Phil as we had talked before is the debt calculation were never deviated from based on the amount of money a person was earning I believe years ago that was 30% of income and with any other debt allowable up to 40%.

Getting around that was the addition of two incomes, based on the 30% which allowed for some extravagant accommodations.

But the draw back to this was about trying to start a family, and this is what I told my kids about the dangers of combining a income and not being able to provide that two income home for that new family.

Thankfully after quite a few years now and providing some help to get into the market years ago all the families are doing well.

Best,