How Will An Economic Downturn

[jaideeguy]

IF the economists are correct in predicting an economic downturn/world wide depression, then how would it affect tourism??? most probably a slowdown with tourist arrivals, as people will have less $'s to spend on fun.

But how will it affect the number of retirees comming to LOS to live cheaper [than the west]??

[Prakanong]

Well obviously both would go down but its by how much?

Depends which countries were hit hardest or at all - you might just see a big rise in the Chinese holidaying.

As for retiree's well depends where they are holding their money - those that wanted to retire on the capital invested in their property might have to wait a while longer if they are not going to recveive as much as they thought for it.

[shochu]

jaidee,

you seem quite worried - which is a good thing - as things will probably get worse - but what exactly are you concerned about. You are retired, you have little debt, you have property and you appear to be aware.

countries living a subsistence life - such as rural thailand will not suffer as much as they are used to hardship and can go work the field and know how to live minimally. The city slicker who needs his jolt of starbucks cofffee and charges everything and lives paycheck to paycheck for the some and those that are a few months paychecks away from default for the many are the ones that will suffer more.

during the depression there were fields of rotting crop while many were starving. I won't bore you with the details as you can try and find the info yourself - but left me say it was intentional as was the crash.

downturns affect thoses that live day to day. I have not known anyone to be affected by downturns personally as most of my friends do not live paycheck to paycheck. Yes people suffer and many will suffer this time too - but with a little advanced planning - you should not be affected too much. As you have been offered advice -pay down debt, learn to do without extravagence and try not to be too obvious. During tough times, crime will increase and nationalism will become stronger. The key this time is to try to stay above inflation as this will be a source of pain for many and do not rely on any payments of any kind as many banks, institutions, etc, will be going belly up. If the ptb and the ppt actually manage to pull this one out of the gutter I will actually high five them and just move back to new york and continue where I left off!

cheers

I wanted to add - I was right about the last two big economic hiccups and I believe I am right about this one - one that I have been waiting for for a few years - I could be wrong - I hope I am - but I believe we will witness the biggest crash in our lifetime and one that will eventaully become bigger than the depression and will eventaully lead to the dissolution of the money markets as we know them today. In the future, the next generation will marvel at the thought that we actually raised money alla the money markets.

Food for thought - the money market is a whopping 50 trillion - ten times the world gdp - most of it is on paper or shall I say thin air.

Edited March 19, 2008 by shochu

[shochu]

typo

should be 500 - not 50 trillion

[VegasVic]

IF the economists are correct in predicting an economic downturn/world wide depression, then how would it affect tourism??? most probably a slowdown with tourist arrivals, as people will have less $'s to spend on fun.

But how will it affect the number of retirees comming to LOS to live cheaper [than the west]??

Not to worry JD, even if the North Americans and Europeans stop coming to the LOS I am sure there will be plenty of Russians and Koreans to take up the slack .

[Prakanong]

IF the economists are correct in predicting an economic downturn/world wide depression, then how would it affect tourism??? most probably a slowdown with tourist arrivals, as people will have less $'s to spend on fun.

But how will it affect the number of retirees comming to LOS to live cheaper [than the west]??

Not to worry JD, even if the North Americans and Europeans stop coming to the LOS I am sure there will be plenty of Russians and Koreans to take up the slack .

Not to mention Chinese and Indians