Topic: Recession? How to face It? - page 3. (Read 1206 times)

A recession certainly has a very bad impact on the economy and affects the order of human life. Even though sometimes a recession is just considered normal by some types of people, the risks are really very dangerous. Recession is definitely avoided by business people and the country is also very worried about it.

I actually don't really agree if there are people who say that recessions are a common thing and often happen repeatedly and can be overcome without any significant impact. But if we look at it as a whole, everyone should be sensitive to such situations and prepare themselves well so that the effects of the recession are not able to hamper the economy to the smallest level.

Because for some people they don't even know the term recession. They know everything that disrupts the economy and an economic downturn is an economic crisis. They don't even know the term inflation. They experienced it but most of them didn't learn it and didn't prepare themselves if economic difficulties occurred again. Yes, it's true that it seems like they really think that the recession that happened might not happen again. Those who are careless are those who will have difficulties because they do not have sufficient preparation. That's why we see many rich people always able to maintain their wealth even though the economic crisis occurs and inflation and recession also have an impact on them. Because they already had thorough preparations long before the economic crisis occurred again. Even if some companies close their business, it doesn't mean they are completely bankrupt. In fact, the brand only reduces the burden. Because sometimes conditions are difficult and if we want to survive then there are times when we have to take off a little of the burden.

That is why it is important for us to always learn from everything that has happened in human history. Not only on what we have experienced but also on things that we have not even experienced but that generations before us have experienced. Learning from history can make us better prepared to face the future.

The reason people are not preparing themselves for recessions is that there's not much they can do really. If you look at the average person, they don't hold any massive investments so are not really bothered with the markets' performance. All they can do is hope they won't lose their job.
Another thing is, that the word "recession" is used very loosely. In a situation when even experts can't quite agree on whether we are or aren't in a recession - the recession doesn't seem so scary.
Whatever happens, things are not very likely to get so severe as it was the case in the past, i.e. during the great depression, when people genuinely struggled to feed their families.

True, but what surprises me the most is that people act as if it is completely impossible for such a thing to occur again, because if you were to ask people about what they are doing to protect themselves in the case of a recession they will look at you with an incredulous face as if you asked them something that could only happen in movies, and then when it does happen those people are taken by surprise by such event and have no idea at all how to react to it.

Recessions have happened a lot in the past and we may have experienced them several times in our lives. In this way, we should be able to learn from experiences and from events that have occurred in the past. This learning is needed to enable us to better prepare ourselves every time a recession occurs. And experts also do this, they learn from history and experience so that theories are formed and used as scientific studies which are also taught in economics colleges and the like.

A recession will not be so scary if we are prepared to face it. And in essence, we must have good financial management, and have a stable and sufficient source of income. And we should always have backup plans like emergency funds and such.

The threat of a recession makes some people panic, because this recession is associated with various terrible things such as declining business, increasing unemployment levels and besides that, other impacts are certain that basic needs will increase, and people's purchasing power will decrease. And other negative impacts, yes, in facing a recession, we have to prepare ourselves, the main thing is that we prepare cash, cash is king when facing a crisis. Just maintain assets that are ready to be liquid, liquid assets are assets that are easy or easy to sell, namely like gold. Yes, it's true what you said, another solution is to increase your business or other income as your own emergency fund. Before mass layoffs occur, we need to save or manage our money well.

This is a phenomenon that often occurs in the economy, not a natural phenomenon as you say because recession and inflation arise through economic changes that are not controlled by the parties involved so that it can cause bad things to happen within the economic scope, such as in the example of recession and inflation that has been felt by everyone throughout the world. And the good option is to continue to work hard and save money because only with this can everyone fight recession and inflation through their own lives.

Things like recession and inflation actually cannot be fought by relying on ourselves alone, so to overcome this and fight it in a better way, of course every citizen still needs help from the government and intervention from other related parties because This is related to the global economy so there needs to be broader handling from all parties in order to get through this like we got through the pandemic disaster that has come to everyone throughout the world.

Every possible solution that a country will do, there's always an opposite reaction. It may not be entirely to the economy but to the people. So whatever a government does to slow down or contain the inflation, they'll still have hard time in removing it all along but reducing it is like the goal of most of them.

It's a very crucial thing to be done by most of them and I agree to you, they need to do it carefully.

Yeah, it shouldn't just be an investment that will gain them profits but they need to consider that it should be way above the inflation rate.

Your money is still not going to be valuable if it's on an investment and the increase is way below the inflation rate.

Recessions have occurred long before we were born and this happens every time the global economy changes and several other causes. Inflation also occurs due to an erratic increase in the price of goods and people's purchasing power weakens due to a lack of balance. Both are natural phenomena that often occur, but with varying levels of severity and what people need to do is follow several steps of advice from experts and live as frugal a life as possible and not wastefully live in these conditions.

We have gone through several critical events caused by recession and inflation and outwardly we have come through well, despite the complications and difficulties. For example, when Covid-19 happened and almost everyone experienced big problems at that time and in the end we were able to get through it on our own with some advice, our own way and assistance from the government.

overall whatever investment there is so long its return rate more than the inflation incurred, its fine, but with bitcoin, we get additional benefit of growing our capital into another level.
I would say that, cryptocurrencies so far is best investment for fighting against inflation, even some random alts could gain 30% increase within short amount of time.
but requires adequate skill and sufficient knowledge to do the investment.
from my observation, not everyone cut it to become investor in cryptocurrency, even more so those that don't really have the patience, therefore its best to test the water first.
seeing if its truly effective way fighting inflation.

It is true that Bitcoin is an excellent investment. But what you said is that you should always recommend Bitcoin investments to deal with inflation. So do you have any proof that Bitcoin can end inflation or that it can help reduce the impact of inflation on finance? If you have any arguments, then give them to us so that we will also be aware. But it is not possible, with the excuse that you have zero tolerance, that Bitcoin can end inflation.

While I can tell you why Bitcoin cannot eliminate or improve inflation, it has a volatile nature, and there is no evidence that its market condition will remain the same tomorrow, which means price movement. It will be the same tomorrow. To prevent inflation, you need a consistent method by which interest rates are raised by reducing the supply of money in the economy, and inflation can be reduced.

It is clear that Bitcoin has high potential to prevent inflation because of its fixed supply and decentralized nature. And this is the thing that can keep Bitcoin as a hope for an inflation hedge, but Bitcoin, despite so many advantages, also has a weakness, and that is its volatile nature, due to which Bitcoin is classified as an inflation hedge or financial status. They hesitate to use it because nobody has tried Bitcoin so far, and no country is ready to try it because there are risks in something based on volatility, and economic status is a serious matter with a small risk. It will also put the financial career of a country at stake. I hope you understand my point.

Actually, most of the countries (at least the Western ones) have been able to reduce the rate of inflation with increased interest rates. The problem is that increasing interest rates have a negative effect on the economy and can lead to many undesirable things like e.g high unemployment. So if not done carefully, it's just like replacing one problem with another.
That's why, in the past, we'd often see that recessions actually came in pair with deflation.

It is happening in every country but for a very few, they're able to slow it down but they can't escape inflation.

Investing overall is a good way to fight inflation. And investing in Bitcoin is just one of the best choice as there have been a lot of choices that everyone can make if ever you're fortunate to have money to invest.

It's a hedge against inflation and others need to know that too.

Unfortunately, currently it seems that not many people are preparing themselves for a recession. So the economic crisis is clearly becoming more visible around me. Even the currency in my country continues to weaken compared to the dollar. So now, without realizing it, all prices are gradually rising again. And currently more and more companies are closing and making many people lose their jobs. The recession has really had a big impact and it is clearly visible now. People are starting to complain that life is increasingly difficult nowadays. Even loan applications are the most sought after today. The result is that many people are unable to meet their daily living expenses. But for those who have prepared from the start, they can be said to be very lucky. Because when the Recession happened they were ready to face it. Different from people who haven't had time to make preparations. They're going to have a really hard time right now.

Not much different from yesterday's Covid pandemic, the recession has weakened the purchasing power of people around the world and caused great concern. There are still many people who don't realize that almost all countries in the world are experiencing a recession which has weakened people's financial capabilities. I am grateful to get good reading almost every day on this forum, from the many posts there are, managing finances well is something that many posters recommend. Recession comes unexpectedly, so preparing an emergency expenditure - income - budget must be started as early as possible.

I guess this thread's OP is supposed to be in top social media platforms and not just this forum as the information in it is meant for the whole world.

The recession being talked about isn't subject to a particular state or an economy or a region but can happen across the globe, hence, the reason why the world is supposed to have this information at their finger tips, else, the government will be blamed and then the impact will even get worse. We all contribute to the economy and therefore must be prepared to salvage whatever is left of it as a human being on earth.

Its already been true recession is apparent because of the growth in monetary supply exceeding the inflationary figures.  When the growth realized is mostly from increased nominal figures related to inflation then you have a recession.  The workers of any country suffering lower currency value like that will experience and understand recession is occurring, when do your full work and receive less for it people dont often miss this effect is occurring.  My point being recession isnt new, we are just seeing greater amplitude on the charts.

Sorry, but that's just plain wrong. Bitcoin is not really a good hedge against inflation, especially not for an average person/family struggling to make ends meet. So far, Bitcoin's price has been moving in roughly 4-years cycles, which is not guaranteed to keep happening, and even if, waiting for years for the price to rise is not something that such people could afford.
And even if the BTC hits $100k in the next bull run, that's only 12% a year (since the previous ATH) which not much above the real inflation.

It cannot be denied that inflation is something that worries everyone, especially if you are a businessman because the continuous increase in prices of goods due to inflation means that many people's finances cannot be controlled, thus having an impact on future financial balance. And this can happen in every country.

I also agree that one way to deal with inflation that will always be recommended is investing in bitcoin. Because, investing in bitcoin will help protect your finances from the impact of inflation. Apart from not being wasteful and having to look for additional work, you also have to avoid debt. Moreover, if you use debt only to fulfill your lifestyle and are consumerist in nature, it is actually less useful.

Right. I think before anyone become so familiar on the market, they are already aware about how they can face recession. Its not like you are feeling all confident with your investments and when recession happens you dont know what to do. Anyway to be ready, its the usual don't put all your digital eggs in one virtual basket. Investors always spread their investments across different things because this way, if one goes down, hopefully, the others can balance things out. Markets tend to recover over time so we should maximize our time to take a break once things doesnt go the way we wanted it to be. Don't rush into selling everything in a panic.