How to save yourself for that “rainy” day?

A veil of darkness seemed to have hit the U.S. economy, with the Department of Commerce revising downwards as third quarter GDP estimates at an annualized rate of 2.2% from the previous 3.5% what had been revised downwards to 2.8%. Although the recession has hit America, globally everyone has been hit by it. Stock markets are taking a beating across the world, which really shows that in time of recession, no one is safe. If expert opinion is to be believed, we get a contradictory portrait of the situation on the U.S. economy. While experts at Goldman Sachs estimate that the U.S. economy will decline further, they also feel that “India’s influence on the world economy will be bigger and quicker than implied in our previously published BRICs research”. They noted significant areas of research and development, and expansion that is happening in the country, which will lead to the prosperity of the growing middle-class. Now if a economy like India, with over 1 billion people, can grow steadily, why can’t we?

As for the Asian countries, the economies are stabilizing with increased production. The proportion of spending by U.S. consumers in the second quarter remains low. The U.S. economy has shown a low growth rate in years. This can be attributed to several factors. Firstly, increase in imports from U.S., . Secondly – reduced spending by U.S. citizens may also be responsible for a low rate of growth of this economy. Unemployment is not much better and could get worse in 2012 because consumers are now saving and reducing debt rather than spend.

The U.S. economy will enter a recession or depression, and then enter a new period of growth. But the truth is the most severe recession lasts about 16-18 months. In fact, the recession would mean that our economy is in decline. Prices are up because the supply is low. People stick to their budget and spend less. Unemployment is still high, even as new expertise skills are scarce and in demand. World stocks are dropping points like crazy and no one is safe from the United Kingdom to Australia.

When it comes to your future, you must take the responsibility yourself, especially in today’s times when even the most businesses need to borrow money to survive. The government said the growth rate was normal if the U.S. economy is not facing a recession. The Congress will pass another stimulus package to create new jobs. It will be big, but it will be adopted in small packages, so they can get the spending bills by Congress without attracting too much attention or indignation. No matter what economic situation you face, there are opportunities. What matters is how YOU position yourself to prevent yourself from these harmful economic variations.

Warren Buffett believes that the strength of the U.S. economy lies in the, spirit of the cowboy, what others have not dared implying that the U.S. economy has the ability to innovate, to keep it up. Hope is the ultimate survivor and we must abide by this fact. Until then we can hope and pray that the reality of the recession should become a nightmare.