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If... we see a property crash, will you be better off....?, page-13

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hawkers

3,404 Posts.

11/04/16

11:50

Post #: 17471217
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Originally posted by pintohoo ↑

"Consider what things would be like if the unemployment rate went to 15% . House building would stop . House renovating would stop . Local holidaying would stop etc etc . Things would be pretty quiet ."

yes and no.

Yes, there would be an immediate halt - and a huge deleveraging - probably.

However - decades back when not many women worked - we had a lot less people in the work force as a percentage than we do now ------------ and, people renovated, people took holidays - and, life went on.

So - it's not straight out the unemployment levels - it's the employment levels and the amount of money earned - in balance with the cost of living and the debt levels at any one time.

I would have thought that anyone mortgage free and low debt - would have little trouble if employment rose to 15%.

We not only survived this before - it was actually normal - by the way we count things now compared to then.

Pinto

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It does matter how little your debt is if you don't have a job. To take advantage of a serious crash and what would be a very long recession you would want to have an absolute stack of cash....something I seriously doubt ANY of the bears have.

Be careful what you wish for.
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