Wednesday, August 8, 2012

The benefit of recession

Over 19% of United States people are rich today. They can generate money while the economic is tight. No matter what the economic condition, some people can generate more money. On the other hand, some unlucky person cannot make money even the economic is good.
We know that recession make us difficult to make money, however, there are some benefits in recession time. You can use it to make you wealth. Here are some benefit in recession:
1. The interest rate decreases
The government want the people to work again.  They do not want people just saves the money and wait for the interest. They decrease the interest rate so the business can borrow the money to widen the market. The company will need some employ to operate the company. Surely, the unemployment rate will decreases after the government decreases the rate. 
2. There is an investment opportunity
Though the stock has hit the bottom, the stock might rise up again. Today, the stock price is very cheap. You can buy the stock for long term. At the end of the recession, the stock price might go to the ceiling.
Do not buy all cheap stock. Carefully analyze the stock that will give you so much money in past. The fundamental of stock sometimes reflects the stock.
3. The low tax
At recession time, the government often cut the tax so the employee can bring more money to home. The government try enlightening the citizen load. The businessman can get more income too.
4. cheaper product
With the low tax and interest, the producer can decrease the price. It is a good idea, remembering the people just have little money.They hope more consumer buy the product so they can generate more money.  For the consumer, they can slash the budget for daily necessity. They can save the excess money for other budget purposes.
5. Cheaper property
Due the mortgage crisis, there are some house are seized by bank. The owner cannot pay the mortgage so the bank sell the house. Unfortunately, the demand of house is low due the downturn economic. The bank should sell the house fast or they loss. That is why the bank offers the house cheaper. If you have so much money, you can buy some property. Someday, the property price will increase.
The land is also good for the investment, due its stable price. Someday, a developer build a condo or mall above the land. Surely, you will get profit over many times.

Read Also :
Protect you from high inflation
How much money for emergency fund
Top Financial Planning Tips

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