...on just about everything! 

http://news.bbc.co.uk/1/hi/business/7759288.stm

The UK chancellor has decided to cut VAT by 2.5%, so the majority of consumer items should be slightly cheaper from today.  The cut is going to last for a year, in order to boost spending and therefore the health of the economy.

Its great, but the risk is that many stores are unlikely to pass on the savings to us and pocket the extra profit margin themselves.  Plus after the year is up, the government are only going to have to increase tax further to pay for stuff they couldn't afford in 2009.

Either way this economy isn't going to get a quick fix anytime soon.  It doesn't make any sense to me that in order to improve things, the public need to spend more on useless junk.  We can't afford more junk at the moment.  If the measure of how healthy our country is, is based on how much profit big businesses make - we're screwed.

The only way the global economic downturn has affected me thusfar is in tip quantity and gas price.

It's Nintendo's fault...

Bastards and their waggle!

Petrol prices are pretty good at the moment - after they sky rocketed for most of 2008, they're now back where they were a few years ago.  Filled up my car for under £50 for the first time in ages!

The recession mainly hit my family with the housing market.  We're trying to sell a house to get rid of some bank debt, but house prices are still falling and people are not interested in buying until it hits rock bottom.

The other thing thats been noticable is the price of energy and food.  This still hasn't come down yet, and general living costs are still high.

Problem is everyone seems to be in debt at the moment.  After 6 years at uni, I came out £24k in debt.  Paid most of it off, and I'm planning to be completely debt free over the coming months, then I'll be able to save for things properly, and buy 15 games a month like Nitro instead of renting!

I can't sell my house. It's not overvalued, but nobody is spending that kind of money at the moment. I sold my apartment failry quickly though and bought another one... where i'm currently living. It's just shitty all round for people at the moment. I don't even think the house would go if i dropped it 70k to what it cost new 4 years ago :(

_Majik_


It's Nintendo's fault...

I wonder how the economy will affect them this year. On the plus side, they're the cheapest console. On the downside, their target audience is the one most likely to decide to that a game console is not an worthy purchase.



I take it Eddie doesn't have a 401k...

nekkid_monkey

_Majik_


It's Nintendo's fault...

I wonder how the economy will affect them this year. On the plus side, they're the cheapest console. On the downside, their target audience is the one most likely to decide to that a game console is not an worthy purchase.



I take it Eddie doesn't have a 401k...

No, their target audience doesnt decide anything, mommy and daddy do.

I would sell nintendo stock if I had any.  The thing is, they're not the cheapest anymore.  In many places in the world they haven't been for a while.  They can easilly drop the price of Wii for the holidays, but i doubt they will this year.  They're probably waiting for a big title like the next Zelda game.  That's what i would do.

Wii will lose it's momentum I think.  It will keep selling but not as well in comparison to the PS3 and 360.

They already have their brand established and it will last them for a few years.  Kind of like how the PS2 raped the Dreamcast and didn't start losing momentum until the end of the Xbox 1.  They don't need to have a better or cheaper product, just the name will do for a while.

nothing could stop the wii now, unless parents find out that it harms their kids some way.. But videogames arent bad..

I think they should bundle Manhunt 2 with each unit.

Its wierd, I dont personally know anyone who bought a Wii.  Must only sell to certain circles of people. 

Over here a Wii and a premium 360 are roughly the same price ~£170-180.  The PS3 is still ~£290! 

As I thought, game prices have remained the same despite the VAT cut.  Bastards.

House prices will probably start to go back up again next year, maybe even the year after.  As soon they do, some people will be jumping to buy before the potential growth.  Hopefully I'll have saved a healthy deposit by then, for a place of my own.  No point passing the opportunity by since it might not come again for another decade.

I take it Eddie doesn't have a 401k...

...I direct deposit half of my paycheck to the bank. Does that count?

You're too young for that to matter anyway, I'm guessing. So am I.  

I never liked the 401k thing anyway, even years ago when it was offered to me.  As I listen every day to how much my coworkers near retirement have lost, I'm glad I passed.  Losing a 10k chunk of your retirement fund in a week isn't any fun, even if you can afford it.

Playing the stock market is for those who can afford to do just that. Play.

The masses need to buy disposable crap so those with money can buy investments, etc.

So yes the economy revolves around that.

The main draw to a 401k plan is company matched funds.  You could also have them put your 401k money into something with a guaranteed return.  It's a small percentage of growth, compared to some of the more aggressive growth funds, but with a company match, you can't go wrong!