Too many businesses these days. Too many restaraunts, nail salons, carpenters, doctors, oil companies, etc. Too much overcapacity. This is what FED policy of low interest rates has done to this country for the last 20 years. Instead of letting the market dictate real interest rates, we had Greenspan and Bernanke thinking they were our gods. They waved their magic finger when the country was teetering on recession and fixed the problem with lower interest rates every time. They also allowed mad crazy lending standards to be allowed under the guise of securitization. What a joke. Well now from these crazy policies we have overcapacity up the ying yang and asset prices that are way overvalued. What happened to the days of recessions when excess in the economy was wrung out ? I guess we thought we were smarter than "the market", or at least Greenspan and Bernake thought they were.
It looks like this crazy spending spree we've embarked on has failed miserably in restarting the economy. The quickie recessions of 1987 and 2001 did nothing to fix the excesses that were in the economy. As the markets sold off during these periods I guess our leaders felt the pain too severe for some, so the decision was made to spend our way out of the recessions. And magically .... it worked ! ...... but all we were really doing was kicking the can down the road. Now the can is filled with cement and we're still trying to kick it ........ unbelievable !
I believe we are facing a deflation like we experienced during the Great Depression. ALL ASSET CLASSES will drop big IMO. But I do believe that the energy sector as well as the food sector will rebound strong after the initial overcapacity is wrung out of the economy. Those sectors will have pricing power as their commodity will always be in demand and they will have less competition keeping prices down. I believe the stove business will be a good business in this environment as competition to the big energy company. There is also no doubt in my mind that Uncle Sam will be taxing the heck out of energy which is even more of a feather in the cap of the stove business.
Don't get me wrong here .... I'm not saying the stove biz is gonna directly compete with the energy companies ...lol. But they will offer many people an alternative to a very pricey commodity that people will need. I see cheap stoves selling real well when TSHTF. I'm a retired finance guy looking to get into the food service business, but the idea has crossed my mind about getting into the stove biz. But when I read this forum I realize how totally ignorant I am compared to so many out there. I'll stick to what I think I'll be good at and enjoy at the same time.
It looks like this crazy spending spree we've embarked on has failed miserably in restarting the economy. The quickie recessions of 1987 and 2001 did nothing to fix the excesses that were in the economy. As the markets sold off during these periods I guess our leaders felt the pain too severe for some, so the decision was made to spend our way out of the recessions. And magically .... it worked ! ...... but all we were really doing was kicking the can down the road. Now the can is filled with cement and we're still trying to kick it ........ unbelievable !
I believe we are facing a deflation like we experienced during the Great Depression. ALL ASSET CLASSES will drop big IMO. But I do believe that the energy sector as well as the food sector will rebound strong after the initial overcapacity is wrung out of the economy. Those sectors will have pricing power as their commodity will always be in demand and they will have less competition keeping prices down. I believe the stove business will be a good business in this environment as competition to the big energy company. There is also no doubt in my mind that Uncle Sam will be taxing the heck out of energy which is even more of a feather in the cap of the stove business.
Don't get me wrong here .... I'm not saying the stove biz is gonna directly compete with the energy companies ...lol. But they will offer many people an alternative to a very pricey commodity that people will need. I see cheap stoves selling real well when TSHTF. I'm a retired finance guy looking to get into the food service business, but the idea has crossed my mind about getting into the stove biz. But when I read this forum I realize how totally ignorant I am compared to so many out there. I'll stick to what I think I'll be good at and enjoy at the same time.