$$ Economy and Prices $$

photo28 · Sep 22, 2008

With the crashing economy in the US, how far do you expect the prices on cameras to drop by Christmas, and around December and January if the economy remains in the same state it is in?
Thanks

usayit · Sep 22, 2008

With the economy, the U.S. dollar is hurting against foreign currency. This will most likely result in goods going up in price not down. Once sales are flat and the consumer's purchasing power decreases, companies/products will have two choices; lower prices or stop selling. It will hurt a while before that happens but prices will eventually go down... IMO, not in time for Christmas.

I'm no economist but that's my take.

The worst thing you can do at this point, is use credit (a foreign concept to the typical U.S. consumer)..... My friends say I'm a pessimist but IMO, I think the worst is yet to come and me personally are in the process of hunkering down and not making any large purchases.

spiffybeth · Sep 22, 2008

why shouldnt i use credit?

usayit · Sep 22, 2008

First question I should ask you...

Do you understand how credit works?

The fact that you are asking is the reason why I believe not buying on credit is "a foreign concept to the typical U.S. consumer".

spiffybeth · Sep 22, 2008

as far as i know i understand how credit works.

Hawaii Five-O · Sep 23, 2008

Its all going to be O.K. guys

, I guess, what doesn't kill us will just hurt a lot, and will be more cussing than normal by other people.

In seriousness though, the economy though has been in a down turn since the early 90's hasn't it? So what we are face now is nothing new is it?

usayit · Sep 23, 2008

Hawaii Five-O said:
In seriousness though, the economy though has been in a down turn since the early 90's hasn't it? So what we are face now is nothing new is it?

There are a few things that are different this time.... ex. War (as morbid as it is) has always given a boost in the economy; Not this time. U.S. has always had a strong manufacturing center; Not this time. (There are more but I'll stop given this is a photo forum).

Yes.. I believe the economy will turn around. The question that needs to be asked:
* How long will this downturn last.
* How many generations of Americans will it take to pay off the debts that we have accrued over the past decade. I am pretty confident that my 2 year old son will be paying for this debt until he retires... perhaps his children too.

spiffybeth · Sep 23, 2008

wait, lets stay on why i shouldnt use my credit card, because im curious.

Overread · Sep 23, 2008

because your interset rates will keep going up whilst your earnings will remain stable/go down - also with increased cost of living you will have less disposable income each week - factor that into paying for credit and you will have less money to pay off your debts - so in the end you end up paying far more and also a greater % of your weekly earnings on the product.

usayit · Sep 23, 2008

spiffybeth said:
as far as i know i understand how credit works.

So if you understand how credit works, the answer should be pretty obvious. Imagine paying off that debt while good/services rise in cost (like now) or (knock-on-wood) you loose your job. Not to mention the risk you are taking if you are looking at a variable rate. The more extreme cases of misuse of credit are those families that assumed that a $100k household income can support a $500k home... the same families that are foreclosing and whining at this time (without realizing not all the blame lies with the lending institutions).

No matter the up front savings on a good deal you find, buying on credit ultimately results in you paying too much. I am no angel... I've used credit but I do it responsibly (most of the time :lol:

). For now, all photographic purchases (and saving for them) have been put on hold and I'm putting everything into the last couple thousand left on my car loan and other bills. The idea is to limit my risk until things get better.. after all, I have a family, house, and a child to support.

If you don't believe things can get really bad really quick, you should talk to the unfortunate folks in Michigan.

Overread · Sep 23, 2008

Just makes sure if the bailiffs come that you are listed as a photographer - they can take it all barring your bed and tools of your trade

(least that is how it works in the UK)

spiffybeth · Sep 23, 2008

usayit said:
So if you understand how credit works, the answer should be pretty obvious. Imagine paying off that debt while good/services rise in cost (like now) or (knock-on-wood) you loose your job. Not to mention the risk you are taking if you are looking at a variable rate. The more extreme cases of misuse of credit are those families that assumed that a $100k household income can support a $500k home... the same families that are foreclosing and whining at this time (without realizing not all the blame lies with the lending institutions).

No matter the up front savings on a good deal you find, buying on credit ultimately results in you paying too much. I am no angel... I've used credit but I do it responsibly (most of the time ). For now, all photographic purchases (and saving for them) have been put on hold and I'm putting everything into the last couple thousand left on my car loan and other bills. The idea is to limit my risk until things get better.. after all, I have a family, house, and a child to support.

If you don't believe things can get really bad really quick, you should talk to the unfortunate folks in Michigan.

youre talking about misusing credit. which i dont. and ive never had an outstanding balance on any of my credit cards. i only use it as an alternative to carrying cash because i have a much higher tendency to spend cash...

knowing that, am i still ok to use my credit card?

Overread · Sep 23, 2008

I would use a debit card like that rather than credit card since then there is no interest on purchases.
Of course it means saving for longer

usayit · Sep 23, 2008

Overread is correct. At that point, you are really ~not~ using credit, which is good (assuming you have self-control). The only credit card, I'm planning on keeping is one I use for online purchases or emergencies.

next step.. cutting up my wife's card :madass: