Cartoon: Recessions don’t hurt everyone
May 26th, 2009
(Source GWS)
Remember, even during the Great Depression there were people that were better off than they would have been. There are always winners and losers.
When prices are falling, and when relative prices change, there are people who benefit from that – as well as people that lose out. During such an event we normally only hear one side of the story …
Categories: Cartoons, Depression II discussion
Some very wealthy people reckon there are more opportunities in bad times than good.
@Homepaddock
Indeed – those with the cash can do quite well for themselves. Those with the assets don’t do so well
Cash always wins. As it should. Over-leveraged borrowers are getting shafted right now and there’s nothing wrong with that.
Market corrections.
One of the best examples of this is old-world grain producers during especially poor growing seasons.
With demand for grain (ie; food) being relatively inelastic, the per-unit price rise would more than compensate for the lower quantity they could provide to the market.