SA could be heading for recession: Index

[longboy]

We need a recession here. It would do people good to tighten up their belts since we are a country of fatsos.

 

[zippy]

Have a look at the JSE --- dont look like a recession to me -- somewhere out there, there is lots of Money!!!

The measure of whether an economy is in recession or not is not directly related to the stock exchange prices.

Its possible for GDP to fall and stock exchanges prices to increase. Prices on stock exchanges reflect sentiment more than anything, which can be wildly off the mark. Its amazing to sometimes see prices of some shares rise so far and their PE rations go out of whack. This is why there tends to be a major correction later on. Because actually the prices don't reflect reality and people deny reality until it hits them in the face.

GDP on the other hand is measurement of "actual"(as afar as can get actual results at the macro level) results, as opposed the stock exchange "oh damn I hope this price is right"

 

[fonoi]

Certain sectors of the economy are hurting. Others are doing really well. Take a walk though the Waterfront or try get a reservation at any high end restaurant. Not a single sign of recession

African Bank has almost 20bn bad loans from last year, Capitec 6bn bad loans. This is a sign that times are tough for the working class.

One rich man can only eat so much in a day, drive so many cars, use x amount of services. The working class are the consumers driving the economy, if they are in trouble, we are all in trouble (To some extent).

 

[RyanPCMR]

No matter how bad it gets, this still beats having sanctions imposed against SA. Think about that for a second. The volatile economy is just how capatilism works IMHO.

Things could be much worse! SA is an emerging market and that counts for international bailouts from organisations like the World Bank or even the UN for that matter.

 

[JStrike]

African Bank has almost 20bn bad loans from last year, Capitec 6bn bad loans. This is a sign that times are tough for the working class.

One rich man can only eat so much in a day, drive so many cars, use x amount of services. The working class are the consumers driving the economy, if they are in trouble, we are all in trouble (To some extent).

I was merely talking about the recession in respect to the JSE. And I mentioned African Bank (ABIL) in a previous post where I contrasted them to Richmond, Woolworths and Naspers

 

[JStrike]

No matter how bad it gets, this still beats having sanctions imposed against SA. Think about that for a second. The volatile economy is just how capatilism works IMHO.

Things could be much worse! SA is an emerging market and that counts for international bailouts from organisations like the World Bank or even the UN for that matter.

Yep