Hypno's cheaper than therapy debt diary.

Seaxwyn

For the benefit of those of us who know nothing at all about world markets, what effect would a bear market be likely to have on us debtors?

Bunnyinthelights

Good question Sea!
(I probably won't understand the answer though...)

Karmacat

I will also take this as the reminder that I really need to throw every penny at my debt while I can, in order that should things get tough in the economy, I can reassess and ease off without (so much) panic. So, this is a positive thing, because it is acting as a motivator.

That is so true. The more debt we have, the more vulnerable we are to events outside of our control. Its something that pushes me on quite a lot.

People are asking about what effect it has on us as people in debt - I think hypno's gone to work now, so I'll have a shot at that, but I'm self educated in this, whereas hypno was a stockbroker, so probably not as accurate.

The stock market is whats known as a leading indicator - i.e. its the first thing that reacts to bad economic conditions, it doesn't *cause* the bad conditions in itself. It does add to the bad conditions - for instance, companies can't borrow to finance their businesses in the same way because what they can borrow is often assessed in terms of their market value. Plus, if companies can't sell their goods or their services because people aren't buying in the same way, people get laid off.

Too dozy (and I need my breakfast!) to think of other things! We need hypno!

duchy

Presumably interest rates also rise-but that might be hopelessly wrong-as if I was any good with money I wouldn't be here

Karmacat

duchy wrote: »

Presumably interest rates also rise-but that might be hopelessly wrong-as if I was any good with money I wouldn't be here

According to the research I've read, they actually don't! Like right now, the bank is being encouraged to cut interest rates to help stimulate things back to where they were.

Of course, I'm old enough to remember "stagflation" - when we were in a recession and interest rates *were* skyhigh. Awful, it felt like there was no way out of it for years and years.

pania

morning guys, how are you all? things are deathly quiet in the mortgage market at the moment too, surely not a good thing, people just not buying and selling and thats across all my sites sadly. builders are having to offer bigger and bigger incentives to get people to reserve and the 2nd hand properties just ain't shifting. think we're kind of in a watch and wait situation, Sat at home most of the day yesterday on here and doing a (little-as hypno will testify) bit of housework. Not ideal really.

Karmacat

Thats also part of it, isn't it - people get scared,and there's also the thing of, why buy it now, they'll have to drop the price next month, and I'll get it cheaper then. Not for nothing is the study of the stock market known as "the science of fear and greed". I love that.

duchy

Karmacat wrote: »

According to the research I've read, they actually don't! L.

See I told you....."I know nothing"

Karmacat

Awwww, Duchy! Can't bear to use the dodgy hug, so this one will have to do..... :kisses3:

duchy

Karmacat wrote: »

Awwww, Duchy! Can't bear to use the dodgy hug, so this one will have to do..... :kisses3:

It's not all bad.....Just think if I was good and clever with money I'd never have met any of you lovely lot !!