I really don't understand how some business sectors feel that the economical status of their sector has nothing to do with the general economy. If people don't have money to spend, they then can't buy your product.
Oh, where can I get some of this "not my" money that I can spend?
- Wizetux
Some businesses aren't connected to the general economy and are making money off of transactional activities instead. As long as those transactions continue to exist and grow in number, those companies will continue to do well, regardless of how the consumer economy is going.
- Scoble, Alex Scoble
@Cristo, wouldn't it just be easier to let your neighbors buy the product, and then just take that away from them? Oh, wait...I think that is how the government is doing it.
- Wizetux
Remember that little economic disturbance the world is just now fighting its way out of? Yeah, people without money to spend, spending it on product ... in this case, houses.
- Le Slip Anglais
Technically, the more business sectors that are tied to the economic status of the general economy make the general economy that much more vulnerable (to cyclical swings). That said, I know this post is about the financial sector. When I hear that, I think about how much more flexible the financial market has become since the 80s, and all the new possibilities that allows. Also the financial sector wouldn't exist as it does if there weren't so many wealthy individuals who feel they need to invest their money somewhere, vs. keeping it in a savings account. Many many of us benefit from that. Many many of us also abused that system, and the system broke because of it.
- Christopher Galtenberg
Putting money in a savings account is still investing. At least people aren't putting their money under their mattresses or buying large immovable piles of stuff that you can't really use for anything. Oh wait.
- Victor Ganata
I've been reading stuff about how economies can be modeled like ecologies, so I'm having a hard time imagining sectors of the market that can operate completely in a vacuum. They're ultimately all competing for the same resources: money. The only way I could see it is if the sectors you're talking about aren't centered around money.
- Victor Ganata
@Victor, one sector that is not connected with the economy as much is that of needed goods. Such as food, heat, water...you know, all those things you need to live. Those greedy bastards..these should just be free for the betterment of man/women (I don't want to be called sexiest again.)
- Wizetux
OK, there's a huge difference between not connected as much and not connected at all. That's all I'm saying. We still buy those things with money. I do anticipate that when the end of the civilization happens, competition over food, water, and shelter will no longer center around money, though.
- Victor Ganata
Barnyard economics, Cristo. So many things are self-explanatory.
- Melanie Reed
"....because you have hidden these things from the wise and learned, and revealed them to little children." Some things seem hidden that are obvious because of the condition of our mind and our heart, Cristo.
- Melanie Reed
I had my 11 year old niece read through the thread, explained it to me, wow, kids these days... very solid on the fundamentals.
- Christopher Galtenberg