How can my son not be affected by economy crisis at all?
I have three kids, two sons and one daughter. My oldest son who is 32 runs a couple business, own three houses, two business properties, and coach kick boxers and few professional fighters. He has always been the type who keeps his eyes on the economy, current event, and everything. He have always been very paranoid type, he have been hoarding on precious metals and diamond, investing, and spread moneys in couple different countries ever since he started his business. Ever since around 2004, he have been freaking out about the economy and telling everyone to start keep their eyes on the economy. But we didn’t take him seriously. My daughter who is 27 and her husband bought a house three years ago and just opened a construction business about two years ago, they are going through a incredible tough time right now. I’ve never saw my daughter so badly stressed out and upset. They’re seriously considering closing the business down and walk away from the house. On top of all this, they have two children. My youngest son is 24, just graduated from college but is still living with me and my husband because he was unable to afford to live on his own with the high gas price and trying to find a job. It just got worse for him, his car broke down and he doesn’t have the moneys to afford to repair it. My husband has been laid off from his job. He has been trying to find a new job for three weeks. We’re living off my income and our saving. I don’t understand how could my son know about everything and see all of this coming from so far away. How could he still keep his business afloat and not seems to be bothered or affected by the economy? He just returned from his trip to Norway not long ago and he didn’t even complain about how expensive it was. He’s even looking at buying a house in Slovakia. He also managed to sell almost all of his stock just a couple months before the stock crashed really bad. He’s already talking about start buying a couple houses in our area (California) soon. He also has sold almost all diamonds just because he learned that there’s new technique that allows man to make diamonds with chemicals. He also often credited his success to not having unnecressay things. Cars are one of them, he have never owned a car in his whole life. However his house has been heavily upgraded and is in a very upscale neighbor. I don’t understand how could he pull all this off and not suffer a one bit from bad economy while everybody else seems to be panicking?
Economics - 3 Answers
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1 :
he is obviously a dick... a selfish dick.. honest
2 :
HI Pat Just like your son I to told my family and friends to start saving their money a few years back because you could see that some thing bad was coming. Higher interest rates, gas prices started to go up three years ago or so, as well as the mortgage rates and the cost of houses throughout the country. I live in Hawaii and every thing here is expensive so when ever some thing changes in the lower 48 it will happen to Hawaii and it will be worst, now if thing change in the lower 48 it will not change as much in Hawaii because eventually it will get worst again. Your son was smart to put away his money and not spend it on things that were not important to his survival, except he selling off all of his diamonds thinking that because man can make diamond using chemicals, well they have been doing that for a very long time, they are call CZs or Cubic Zirconium's, they look just like diamonds only someone who know how to tell the difference will be able to see the difference. So selling his diamonds may have been just something to fall back on, his precious metals though are very good investments and should gain some ground as time goes on especially gold it is going up in price as we read and write. Now as for you son's homes, if he owns them out right no mortgages then he has nothing to worry about other than being paid the rent from his tenants. As for his trip he took on a credit card most likely so it wouldn't have hurt him to much, but with the way things right now with the banks and their interest rates it will be harder for to get in creases on his balances and if he needs to get things or equipment for his gym it will be harder for him to make loans like every one else, but if he has managed his moneys right he has a good chance of getting through the crisis in fair condition, but by no means will he get through it will out having some troubles, remember even the riches people are having some troubles. For him to buy any homes any where he will have to have a lot of expendable funds because it will not be as easy as it used to be to get a home loan that is why the country is in trouble now. Your daughter and her husband have been swept up in the mortgage crisis with out even knowing it, with a new construction business in a down turning industry. Not having work is the biggest thing in construction killing its business as fast as it took to get it started, tell your daughter instead of closing it up, down size and take the small jobs for now, like the side walk or drive ways. If it is carpentry, take the little storage sheds and railing repairs, even the handicap ramps. Take the jobs close to home or to the shop to cut down on the fuel cost, clean and repair the equipment they have now instead of buying new ones. If they can hang on for at least two years they should be alright, at this time in their lives they wont get rich but they will be able to survive they just have to think small for now. As for your young son tell him to look for the small jobs for now as well as your husband, tell them having any job is better than not having a job, besides in a few years things will be better not completely, but better. Ever one is feeling the pinch and pressures of our falling economy even the foreign countries that deal with the US, the experts believe that then can throw money at the problem to make it better, but that is not the answer, that was the problem, the more money that went in to the economy the more people wanted until it just wasn't enough yet in reality there was no money for the rest of us so what ever we had we put away, we put so much of it away that there was nothing left for others to pay their bills and once that started to happen it was just a matter of time before the neighbor and the next and the next weren't able to pay theirs even though they all work hard it just wasn't enough for those that wanted more. There really isn't an easy fix to our economy, but I believe that if the cost of homes were to drop to the prices of the 70's and 80's and stay there for at least five years, that means the government putting a limit on what a house can be sold for keeping down interest rates while allowing the dollar to stengthen the countries economic troubles will all but be a memory, but that is just me. I don't know it this is the kind of answer you were looking for, but these are the things that I believe. I hope it kind of gives you some thing new to think about and you are welcome to share my answer and thoughts with your family and friends. Take care and good luck to you and yours...Keep the Faith....Peace....cya
3 :
If you always think the sky is falling, every once in awhile you'll be lucky. You don't give much details but I would guess your son did not anticipate any of the current events, he was just a paranoid -- just as people write doomsaying books every year and are wrong 19 years out of 20. I've heard lots of people predicting calamity over the past 25 years, and not a single on of them actually predicting anything close to the chain of events that is actually happening. If you prepare for an earthquake and you get a hurricane ... your preparations may pay off and you may think you're smart, but you can't claim after-the-fact to have predicted anything accurately. However sometimes you get lucky so maybe he did this time. If he avoids unnecessary expenses, that's always a good survival technique in any climate. By the way, LOTS of people are unaffected. We're not talking the great depression here. As far as I can tell my whole state is still doing just fine.
