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How Long Before The Big Crash (NFR)


Fish Farmer

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With the high price of gas, how long before we see everything going for a crunch. Trucks, Boats, Cottages, Homes, Resorts, Businesses, Jobs, Food, Life styles, etc. I think we are in big trouble if they don't do something with the high cost of gas. It may be to late! :unsure:

It will be a ripple effect. Are people walking with their head in the sand. :whistling::sleeping_02::blink:

What is your opinion? :dunno:

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It's already starting....2 major world factors....

 

1) Oil prices and high gas prices. We all know it now costs more to drive our cars and operate our boats. Airlines are implementing/increasing fuel surcharges again. Trucking companies have to raise their freight rates, which in turn increases the price we'll pay for ALL goods.

 

2) World rice/grain prices are at or approaching record highs. Some people think oh well....I don't eat rice or much grain, but it's not what WE eat that is going to hurt. The price for feed for cattle is rising big time! Within a few months the price we all pay for meat will begin to rise...but there's a double whammy here...gas prices raise the cost of operating a farm AND transporting the meat to market.

 

The writing has been on the wall for a while now....the world is just too slow to react.

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I say it's time to evaluate your debt structure and consolidate/minimize.

 

Manage your spending and expenses carefully.

 

You may want to evaluate your current income stream and determine how viable it is.

 

Also if you are employed it might be time to brush off your resume, do some networking and have a plan.

 

Circle the wagons. Hopefully Canada's high dollar and relatively low debt profile will help us but as Trudeau said it is difficult when you are in bed with an elephant.

 

Nemo

 

The Right Honourable Pierre Elliot Trudeau originated the phrase in a speech in 1969 when he said, speaking of the U.S., that Canada’s relationship with the United States is like that of "a mouse in bed with an elephant…no matter how friendly the beast…one is affected by every twitch and grunt."

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I know I put 20 bucks of gas into my boat last wkd and the gauge hardly moved.

 

I am fishing close to home this year (fortunate to live in good area) but I was reminded fishing on my local lake last year that sees a lot of bass tourneys with roostertails aplenty---I wonder if that will affect the wide-open travel even after take-off---I know in tourneys that time could be money but if your not cashing many cheques it starts to pinch a bit.

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Actually the crunch hit home along time ago, I never fully recovered from the last recession. It did though teach me how to cope with setbacks. When this finally hits the rest of those that have been riding the gravy train WOW! It's going to hit them with both fists and both feet kicking like a world title champion! The debt load that most people are carrying is mind boggling. There are many that are going to learn a few harsh reality facts.

 

Perhaps the best ammunition to fight a big downturn is to just shut off the radio and TV news and don't read the papers. The media only added fuel to the recessionary fire the last time.

 

As for when it is going to hit? Soon, much sooner than most are ready for.

Edited by pikehunter
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Very good replies. It makes one wonder when it will stop. I have a big boat in my garage and it's staying there. I use a small one now with a 4 stroke. I once fished about 4 to 5 times a week, now I try and team up with a few guys to split on the gas and lucky to get out once a week. You hear on the radio talk shows that people think everyone should drive a Hybrid. I like to see pulling a boat or trailer with one. Businesses need trucks, transport trucks for hauling goods. If were not building trucks, boats, trailers, ATVs, etc. means unemployment. No money. You see husband & wife working now and their lucky to keep up with mortgages. Not buying toys, travel, doing sports means layoffs and closures. I'm retired, and it makes me think I may have to sell a few things that I once bought for my retirement. Who would of ever thought. Every day on the news you hear about layoffs. You wonder if our government ever thinks or listens.

Edited by Fish Farmer
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As far as the resort industry goes...Yes it started at the end of last season and the impact has been felt

right from the start this year. In the Muskoka's everyone is feeling the pinch. Part of the problem is the Boom

of resorts and golf courses which have exploded here in the last 10 years. It was a stretch for a lot of these places

to reach a profitable occupancy when there was no recession (for lack of a better word). And now that the economy is going for a dump you can expect to hear a lot more about it.

i.e. - closures, sales of properties, increased prices etc. etc....

 

Sad thing is for people who work at these resorts (believe me we can't afford to stay at them) the pressure to do more for less money is continually increasing. Stress is a killer. It's the reason I've decided to move on in 2 - 3 weeks. I have nothing firm to go to but sometimes you have to leap before you are sure where you will land,

they call that life. :)

 

 

Hookset.

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its worse for folks on fixed incomes. over the years folks have over extended there paycheques. with high oil prices we will become worse off. sad deal the canadian goverment turns a blind eye to the prostitution of our resources. the better part of oil reserves in canada are NOT canadian controlled.

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Having lived out west in oil country all of my life, I have seen the boom/bust cycle before out here. Go from money is no object to no money at all seemingly overnite. I feel sorry for the people out here as there are some tremendous debt loads I am sure. $350000 homes, quads, boats, trailers etc and how they pay for them now I have no idea but wait till oil and gas crashes and look out. Can see signs now as a lot of the toys are up for sale.

 

As for myself, I have cut back on fishing trips, quit smoking and drinking, bought a more fuel efficient truck and have parked the fifth wheel in favour of a tent. Also find myself driving within the speed limit more and the boat runs at 3/4's throttle not wide open near as much. Every little bit helps.

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Yep,

1) Plant as big a garden as you can,

2) Brace yourself for Smart Metering of Electricity,

3) Get rid of or park the pickup truck and drive a tiny car,

4) Heat your house with local wood (tow a small box trailer behind the car),

5) Fish and Hunt,

6) Down size your boat,

7) Start thinking more European!!

 

Entropy

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Gas just like anything else will charge what the traffic will bear. Once people REALLY start cutting back on unnecessary traveling the price will level off and may even drop a bit.

 

Thinking European ? ? ? NEVER happen here the Great USA ! ! !

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Real Inflation is much higher than the gov't cares to reveal, go grocery shopping and actually look at the prices of EVERYTHING. Many economists estimate it to be running at over 10%. That is scary, wages have not risen that much to compensate.

I reiterate an earlier post, Re-evaluate your debt load and decrease it as much as possible, sell off STUFF if you need to but don't carry too much debt or you will sink. Save till it hurts and then save some more. Oil probably will not come down in price very much, the era of cheap energy is over. Get ready for $200/barrel and $2/litre for gas.

We are in a bigger mess then our elected leaders care to admit. My personal belief is to be conservative with your investments (I am a financial advisor) and don't make a lot of big ticket purchases unless they are a necessity and are bought with cash, not credit. There is a recession looming that could very easily become a depression. Our high dollar and high cost of fuel is choking the Canadian economy, raw commodities command high prices but our manufacturing sector is dying quickly. They are fine out west but here in Ontario, we are hurting and the federal government is watching with glee. It sickens me to see how Canadians (yes I said Canadians) out west hate us from Ontario. I saw it in Vancouver a few years ago and I was amazed at just how pervasive it really was. I guess PM Harper is finally getting to build his fence around Alberta like he's always wanted.

That's enough ranting, I could go on for days.

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It looks like $5-7.00/gal is very realistic in the near future. I'm very concerned that the worldwide economy could unravel pretty quickly. As was posted above- the writing has been on the wall for some time. Truthfully, I wouldn't worry about consolidating debt as a first step, but what I would do is cut back on expenses, take that money and pay yourself. Create your emergency fund before you pay extra to your debtors.

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bigbuck, maybe the National Energy Program might have brought on the major distrust of western Canada and the rest of Canada. That program fleeced the western provinces, Alberta especially.

 

Also look at the news lately, Dalton prancing around saying Ontario sends $20 Billion a year to Ottawa, more than any other province. That may be so, but to get a true grasp on transfer payments, look at those numbers on a per capita basis and I am afraid Alberta is sending more money to Ottawa than any other province.

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To Doubleheader, we are paying almost $6.00 a gallon. It makes me sick when I think I paid $.35 a gallon and people complained when it went up 1 cent a gallon. 4 1/2 liters makes a CA. gallon.

Don't say I'm old :D when you think, that wasn't long ago. :rolleyes:

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Guest Johnny Bass
bigbuck, maybe the National Energy Program might have brought on the major distrust of western Canada and the rest of Canada. That program fleeced the western provinces, Alberta especially.

 

Also look at the news lately, Dalton prancing around saying Ontario sends $20 Billion a year to Ottawa, more than any other province. That may be so, but to get a true grasp on transfer payments, look at those numbers on a per capita basis and I am afraid Alberta is sending more money to Ottawa than any other province.

 

 

I'm not so sure about that. They say a lot of Ontario's taxes are being used to cut corporate taxes in other provinces. I would guess Alberta is taking the bulk of it.

Edited by Johnny Bass
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Guest Johnny Bass
....There's plenty to read on crude oil pricing just google it.

 

Reading through stuff like this or this just makes my blood boil!

 

Exactly! Every country that produces more energy than they can use up sells dirt cheap energy. But Canada? We sell at global prices? Disgusting. Canadians are being ripped off!

 

And I say those figures and I wonder how Shell's profits went from the lowest to the highest profits(by far)?

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