Just straight to the point, what’s the ripple effect of economic downturn?
Lower bank savings interest rates
Falling housing sales and reduced property values
Companies are downsizing, and filing for bankruptcy
Higher unemployment rate
So who is the most affected group? For sure, people may say poor people most affected. For me, it depends on your current financial situation. People that have NO SAVINGS suffered the most. People that pretend to be rich suffered too. However, middle-income group suffers the most since need to work harder to solve today’s challenges.
Economic downturn only benefits the top few tycoons in the world where they hold on the bulk of the money, to keep it from circulating, forcing companies to close down due to lack of cash flow and debt, which in turn forces stocks and shares price drop. When it drops, these top people will dump their money in and buy more, then wait for the economy to improve, and then sell off for profit.
Rich Get Richer, Poor Get Poorer
Rich one can make use of the poor one, but poor one will always be the one to be used to do any and willing to do anything to get money. As poorer work for richer, then richer get more and poorer become poorer to pay a lot expenses.
The rich can start with building a business. Once the business generates enough cash flow, it buys investments like property. As the business grows bigger, you can sell share of the company. In the other hands, the poor need time to make money is the fundamental thinking of the poor who aspire to be rich, and those that intend to stay rich.
In my personal opinion, Cash is King now, who own cash then that person can do any during recession.