Friday, December 26, 2008

Saving Money May or May Not be a Good Idea

Now that Christmas has come and gone it's time to think about serious things again.

I have decided to grow a beard. Why you ask?

1. I really don't like to shave.
2. Shaving is expensive, having to buy shaving creme and razor blades and after shave and what not.
3. I don't have a whole lot of hair to play with, so facial hair is a quick and exciting way to change my appearance.

But, due to the down turn in the economy, growing a beard may make the depression worse.

If I am not buying shaving creme and razor blades and other essentials, the people that make these items will not have as much product to make, the people who make the containers will not have as many containers to make, the people who make the steel will not have as much steel to make. This in itself is bad, but it gets worse.

Investors will notice the slowdown in demand for said items and take their money out of the companies that make these items causing the stock prices of those companies to fall. This will lower their borrowing ability putting further financial stress on the companies causing them to lay off workers, who will then apply for unemployment benefits.

These workers will be less able to pay for the basic necessities of life, such as mortgage payments, food, health care and even shaving creme and razor blades, which exacerbates the whole problem farther.

That isn't the worst thing though, because all of a sudden we end up with a huge group that looks like this:

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