Economic Crisis? Show me the money!

[Hurbel2k]

I recently heard there is this so-called economic crisis. Well that's cool, but instead of mourning about all the loses I don't want to lose time. Instead I want to make a profit of the current crisis and the upcoming recession.

Websites on the topic 'debt' should have great response at the moment, but what other type of websites should be in demand at the moment? What kind of business would You open at the moment or in the near term future?

[Nazreen]

In the recent survey done in Singapore, it was said that today the most viewed websites are those websites showing you how to save your money and survive in this global crisis. Websites containing information on Lehman Brothers and their mini-bonds were also viewed a lot because there were a lot of people here, ranging from professionals, to retirees to housewives, who invested in Lehman Mini-bonds.

[Kay]

Saving money, definitely. I'd try zone in on a few particular areas rather than attempting to be all things to all men. I'd suggest you look at the main ones that need to take priority above all else- food and shelter. So how to save on your food bill, your major utilities to prevent disconnection and your mortgage/rent would be my focus.

After that, my choice would be other major commitments people have such as credit cards, car loans etc and cover topics like how to reduce your monthly payments or what steps to take to avoid getting into financial trouble with them.

Think about what would keep you up at night worrying if you were to lose all or even half your income tomorrow. Therein lies the answer. People worldwide are more similiar than different. :)

[Fergal]

An increasing number of people are concerned with how they will pay back their mortgages and with facing negative equity. You may well be able to find a market in this area.

Sales of lunch-boxes have increased significantly in Ireland in recent months. More and more people are looking to save money by brining a packed lunch to work, rather than going out for a meal or buying a sandwich.

[entreator]

So this makes it clear,to make profit at this crisis time one has to exploit what people require at present.Someone or something which can help or advice them what to do at this time to save what they have and get safety from the volatility throughout the world.

[Hurbel2k]

How about a website about building Your own business?
I guess soon quite some people will be unemployed and probably try it on their own.
Or one of those how-to-be-frugal websites.

On a side note, this weekend Munich, Germany hosts the first big German millionaire fair. Products for the wealthy are on the display.

[Nazreen]

How about a website about building Your own business?
I guess soon quite some people will be unemployed and probably try it on their own.
Or one of those how-to-be-frugal websites.

Making a website about building your own business and how-to-be-frugal websites would also be a good idea. Unfortunately, you're right that a lot of people are already being retrenched at this moment. You can also try motivational websites and chats to help them and lend them a shoulder to cry on during these hard times.

[Fergal]

How about a website about building Your own business?
I guess soon quite some people will be unemployed and probably try it on their own...

Very good point, many people are finding their jobs under pressure and are being forced, reluctantly into entrepreneurship. They will be looking for information and assistance to help them with this transition. Hopefully some of them will come along here to Business Advice Forum.

[Kay]

I recently heard there is this so-called economic crisis. Well that's cool, but instead of mourning about all the loses I don't want to lose time. Instead I want to make a profit of the current crisis and the upcoming recession.

Websites on the topic 'debt' should have great response at the moment, but what other type of websites should be in demand at the moment? What kind of business would You open at the moment or in the near term future?

I was reading today about a new site for hand-me-down kids clothes and baby products - moms place an ad and can buy, sell or give away items that are gently used. This is the kind of site I think we'll see more of as people start feeling the pinch.

http://www.handmedowns.com/welcome

[Fergal]

...a new site for hand-me-down kids clothes and baby products...[/url]

A good idea, should be helpful for families who find themselves short of money. They can raise money by selling some of their unwanted stuff and buy badly needed kids clothes at knock down prices.

[Nazreen]

The hand-me-down kids clothes and baby products is quite a nice idea especially during these hard times. It can help save mothers/parents some money which can be used for more important things.

Saving money is really important. I've also read an article in the web about saving money and it said there that the best way to save money is to exercise and eat a healthy diet. I'm not saying that you sign up immediately in a lifetime membership in a fitness center though. Exercising doesn't have to be expensive and the best exercise is actually free and that is walking. Eating 2 servings of fruits and 2 servings of veggies everyday is also a must. If you eat healthy, exercise regularly and avoid all those deep fried foods like french fries and avoiding fastfood, you'll be saving money that you will spend in clinics and hospitals for treatment of heart disease, high blood pressure, kidney problems, and others.

[scifi]

Well I would like to make most out of this economic crisis by investing my money on the stocks in the STOCK MARTKET having strong bottom & fundamentals since they are at all time low & also nothing is permanent.
One day when this crisis will be over which will definately be I am assured of very good returns.
You must invest in stocks only if you are planning long time investment.!!!!!!!!!

[Fergal]

...You must invest in stocks only if you are planning long time investment.!!!!!!!!!

And only if you can afford to lose what you invest. Hopefully you are right and stock values will go up. But there is also the possibility that you could invest in a company, only to find that it goes bankrupt and your stock is worth nothing.

[scifi]

And only if you can afford to lose what you invest. Hopefully you are right and stock values will go up. But there is also the possibility that you could invest in a company, only to find that it goes bankrupt and your stock is worth nothing.

Although Fergal you are right that possibility of such a thing do exists But if we invest in a Company with strong Bottom & Fundamentals, it's rare that you are at higher risk of losing your money!!!!.

[Fergal]

...a Company with strong Bottom & Fundamentals..!.

Would Lehnam Brothers have fit that category 12 months ago?

[Nazreen]

I would say that Lehman Brothers had solid fundamentals and also has a solid 158-years history. With these in mind, I guess no one could have anticipated it's collapse except their management who knew about all those billions of toxic bad debts that it was holding.

If you ask me, I think all the banks who were selling Lehman mini-bonds should also have known that Lehman is going under. Why are they only suspending and sacking those Relationship Managers who people complained about? I'd guess that the higher management wouldn't want to take responsibility because if they did, they would then be required to pay off all those unsuspecting investors who bought Lehman mini-bonds.

[scifi]

Would Lehnam Brothers have fit that category 12 months ago?

It's certainly true that the case Lehman Brothers is something one should definitely consider in mind while making the investment in stock markets but it is also the only case that has occured too in USA.
Any Indian company does not have such kind of history, because the corporate culture is different in different countries.

Fergal I agree with you when one should keep in mind definitely the case of Lehman Brothers But at the same time it is also true higher the risk higher are the returns. Also no business is without risk in this period of recession.

[Fergal]

...it is also the only case that has occured too in USA...

Unfortunately that is not true. The shares of lots of other established banks have plummeted. They may not have gone to zero value, but they are only worth a small fraction of what they were worth a year or two ago.

[Kay]

Well I would like to make most out of this economic crisis by investing my money on the stocks in the STOCK MARTKET having strong bottom & fundamentals since they are at all time low & also nothing is permanent.
One day when this crisis will be over which will definately be I am assured of very good returns.
You must invest in stocks only if you are planning long time investment.!!!!!!!!!


And only if you can afford to lose what you invest. Hopefully you are right and stock values will go up. But there is also the possibility that you could invest in a company, only to find that it goes bankrupt and your stock is worth nothing.

No offense, scifi, but I think it would be unwise to invest in anything in the market right now. Fergal's giving you good advice here. This is a long way away from all time lows and there's a lot of damage yet to be done. We're only seeing the tip of this very nasty iceberg.

The EU announced that the 15 countries that use the euro are officially in recession. (http://www.google.com/hostednews/ap/article/ALeqM5ipzZ-ZVFuBCVK810-PpiBUogE45wD94EPHDO0)

Just today the US Commerce Dept here reported record drops on retail sales. (http://biz.yahoo.com/ap/081114/financial_meltdown.html)

That's just a few things today alone but big, important indicators on the shape pf things to come in my book. You might be interested in reading some of the articles at our stock related site, such as And The Bear Roars. (http://www.2oversold.com/and-the-bear-roars) My husband writes these opinions and has been following the market's ups and downs for many many years. It shows a chart of exactly what happened in the stock market crash of 1929, which was the precursor to The Great Depression in the US. Feel free to comment on any of the articles or ask questions there.

This also makes interesting reading: Why the market crashed in 1929 (http://www.ohiohistorycentral.org/entry.php?rec=559).

[scifi]

Hi! Everybody
I just want to convey message that "Entrepreneurship Is the Success Mantra Of the Future" provided that you act now!!! Invest Wisely But carefully..Right time for Investment....

Up & Downs are always associated with everything you could possibly think of yourself to be connected of whether it is your life or your business or market. But the fact is that nothing that lasts longs also lasts forever. It has to end one day.
Moreover it is much difficult to cope up with bad times after good ones but going from bad to good one is that everybody will wish for.
I believe whatever damage has come to market has come because we were unaware of the issues & our negligence on the part of problem that has started taking roots since few years back itself had made it worst possible.
But now since everybody is aware of the problem & is ready to invest massive efforts in the solution of the problem, this recession will not going to last long.
So it's very good opportunity to make use of the sky bottom prices to reap a huge profit in good times of MARKET.

[Fergal]

You do have a point Scifi, many successful businesses were started during times of recession. Reasons for this include;
Many people found themselves out of work and were forced to set up a business in order to make a living
Hard times can motivate people to better themselves and look for ways to secure their future
People learn the value of money and of keeping costs down, when money is in short supply.

[scifi]

You do have a point Scifi, many successful businesses were started during times of recession. Reasons for this include;
Many people found themselves out of work and were forced to set up a business in order to make a living
Hard times can motivate people to better themselves and look for ways to secure their future
People learn the value of money and of keeping costs down, when money is in short supply.


Hi! Fergal
I am totally agree with your all the points.
Even I have tried to convey the same thing in my previous post that recession has brought opportunity for all those who wants to make it big in the future. So instead of viewing this recession as a down time analyze the opportunities it is presenting before you & make the most of it.

[Nazreen]

A lot of people, especially traders, are actually saying the same thing. This could be one of the biggest opportunities that comes out only once in a while. If you pick the right stocks in the stock market and buy now at bargain prices, you can see the value of your stocks increase more than tenfold. But there is a big "IF" there, "IF you pick the right stocks...". For the rest of us who are not that good in investing in stocks, it would be very hard in finding the right stocks.

In my opinion, the recession presents a good opportunity but only to those who knows how to take advantage of it.

[scifi]

A lot of people, especially traders, are actually saying the same thing. This could be one of the biggest opportunities that comes out only once in a while. If you pick the right stocks in the stock market and buy now at bargain prices, you can see the value of your stocks increase more than tenfold. But there is a big "IF" there, "IF you pick the right stocks...". For the rest of us who are not that good in investing in stocks, it would be very hard in finding the right stocks.

In my opinion, the recession presents a good opportunity but only to those who knows how to take advantage of it.

Exactly Nazreen!!

If you don't know how to make a dish & you are going to rectify it by adding few spices, the probability is more that you spoil it.

Yes stocks though offer high returns but also are very risky. So if you don't know the A-Z of stock market it's better to keep your hands away.
For all those who can afford risk & have knowledge to cope such situations, this is great opportunity as said by nazreen, fergal & many more experienced traders in the market too!!!!!

[myinvestorsplace10]

Thank you for sharing useful information.We're not going into a depression. Nor are we for sure in a recession. There is debate over whether we are or not. Even if we are it doesn't mean that we'll be in a depression. Things will get better.

[Nazreen]

Thank you for sharing useful information.We're not going into a depression. Nor are we for sure in a recession. There is debate over whether we are or not. Even if we are it doesn't mean that we'll be in a depression. Things will get better.

Welcome to the Business Advice Forum myinvestorsplace.

I guess that people are still hoping that the US is not in a recession but officially it's already in a technical recession. I also know of Japan and Singapore that are also officially in a technical recession.

Can you share us your thoughts on why you think that the US will not go into a depression myinvestorsplace?

[Nazreen]

A survey done in Singapore has shown a dramatic increase in tv viewership after the financial crisis began. People would rather stay at home and watch tv than go out to parties, shop, drink in pubs. Also, there was also an increase in internet usage in Singapore and there was also an increase in sales done online.

So, this means that if your business is involved in either the television industry or online stores, you would also have benefited during these times.

[Fergal]

...there was also an increase in internet usage in Singapore and there was also an increase in sales done online...

I don't have specific figures or stats but I've spoken to quite a few people recently, who have just started buying online for the first time, in an effort to save money, because of the recession. As has been said already, this represents an opportunity, in a crisis.

[Kay]

Thank you for sharing useful information.We're not going into a depression. Nor are we for sure in a recession. There is debate over whether we are or not. Even if we are it doesn't mean that we'll be in a depression. Things will get better.

Welcome to BAF, myinvestorsplace. Nice to have you here. :)

As to us not being sure we're in a recession, I honestly don't see how anyone can doubt it's imminent or here, depending on where in the world your are. You don't say where you're from but I too would like to hear your thinking on why we're not.

I think you'll find this thread interesting where the subject's being discussed extensively : IMF warns risk of global recession is rising. (http://www.businessadviceforum.com/showthread.php?t=668) Speaking from what's happening on the US side, they're shying away from saying the R word is official but that isn't stopping it from happening imho. You can also add another 15 countries in Europe (http://www.google.com/hostednews/ap/article/ALeqM5ipzZ-ZVFuBCVK810-PpiBUogE45wD94EPHDO0) that are officially in recession to those Nazreen mentioned.

I'd love to think things will get better too. The question is when and how many casualties there will be in business before it ever does.

[scifi]

So, this means that if your business is involved in either the television industry or online stores, you would also have benefited during these times.

It may happen that demand of FMCG's products & other necessary products remains constant in the market so as to be beneficial for one, despite of the recession. But the same can not be said for online Stores Business too.
I admit that though television can be beneficial business these days too but since various costs associated with online business stores like postage costs, credit card transaction fee costs, etc. & that too with not at instant delivery.
It would be much better to take home service of any store nearby you or going yourself to some supermarket to get the product. Cost will be same or may be can less too.

[Kay]

I think we'll find that online shopping over the festive season will be more popular than it's ever been. Everyone's looking for ways to cut costs and being able to avoid using the gas/petrol to get to some far away mall can be avoided is a saving in itself. Of course online offers are usually better than store ones anyway.

I know last year here many of the big stores offered free shipping and I think this year it'll be even more cutthroat as companies try to get your business. There's a definite change in attitude here with people becoming more cautious with their spending habits. The retailers will be seeing it as probably the last time people will spend on luxuries rather than necessities for a long time.

[scifi]

I think we'll find that online shopping over the festive season will be more popular than it's ever been. Everyone's looking for ways to cut costs and being able to avoid using the gas/petrol to get to some far away mall can be avoided is a saving in itself. Of course online offers are usually better than store ones anyway.

I know last year here many of the big stores offered free shipping and I think this year it'll be even more cutthroat as companies try to get your business. There's a definite change in attitude here with people becoming more cautious with their spending habits. The retailers will be seeing it as probably the last time people will spend on luxuries rather than necessities for a long time.

Hi kay!
If we analyse the situation you will find for big shopping orders, online cost you in some cases more than you might save on gas or petrol.
Suppose you have purchased items from online store worth 5000 bucks it means at lowest possible of 2% transaction charges of credit cards(what are transaction charges in your country) you will be charged fee of 100bucks which is quite more than your saving on petrol or diesel unless you go shopping for in very distantly situated malls.
Moreover online stores will not be able to provide you with instant delivery.
I can not say exactly the same for small shopping orders but still their quality & feasibility accordingly can not be guaranteed.
However I support online shopping of some products which are not available in your city or available online at huge reduced rates so as to accommodate transaction charges also or newly launched in the market.

[Fergal]

...Suppose you have purchased items from online store worth 5000 bucks it means at lowest possible of 2% transaction charges of credit cards(what are transaction charges in your country) you will be charged fee of 100bucks which is quite more than your saving on petrol or diesel...

It doesn't really work like that. For example many books in Amazon are priced cheaper than at my local bookshop. When I make the purchase from Amazon there are no transaction fees added to the purchase price, these are covered by the seller. The same applies if I use my credit card at my local book shop, they have to pay the transaction fees.

Something that does apply are delivery charges. However, the online store generally has a much lower cost base than a bricks and mortar retail store. Hence the online shop can charge less and this is often low enough to ensure that the total purchase cost is less than what you would pay at your local shop.

[Nazreen]

Yes, what Fergal said above is true Scifi. When you use your credit card to purchase from a retail shop or an online store, transaction fees are usually charged to the merchant. In this case, the merchant is the retail shop or online store. This is also the reason why some merchants have set a limit, let's say "$25 minimum spending" for you to be able to pay using a credit card.

As for international online shopping, it's best if you check first with the online store if the price they've listed already covers shipping costs. If not, you might be paying more in the end as compared to just buying from your local shops.

[deepak_sharma]

May be you could start your new website with the name of "How to deal with share market in present situation". I am sure many people would hit it.

[scifi]

It doesn't really work like that. For example many books in Amazon are priced cheaper than at my local bookshop. When I make the purchase from Amazon there are no transaction fees added to the purchase price, these are covered by the seller. The same applies if I use my credit card at my local book shop, they have to pay the transaction fees.

Something that does apply are delivery charges. However, the online store generally has a much lower cost base than a bricks and mortar retail store. Hence the online shop can charge less and this is often low enough to ensure that the total purchase cost is less than what you would pay at your local shop.
Thanks Fergal.. for clarification
Then it can be said here that one must be very careful while paying credit card's bill on time otherwise the little saving can prove too costly due to heavy fines on late payment...

[Kratosedo]

I recently heard there is this so-called economic crisis. Well that's cool, but instead of mourning about all the loses I don't want to lose time. Instead I want to make a profit of the current crisis and the upcoming recession.

Websites on the topic 'debt' should have great response at the moment, but what other type of websites should be in demand at the moment? What kind of business would You open at the moment or in the near term future?

in my country, great business in this Global economic crisis is advertising... you can make some forum or board that contain many things... infact... you must have a great and alot of member...

just my 2cent... :)

[Nazreen]

in my country, great business in this Global economic crisis is advertising... you can make some forum or board that contain many things... infact... you must have a great and alot of member...

just my 2cent... :)

Edo, I think that the problem is that when you're just starting on a new forum, you wouldn't have that many number of members since you're just starting out. Do you have any advice or ideas on how to have a great number of members joining a new forum?

[Fergal]

Kratosedo, do you have any examples of this being implemented in practice?