This is a blog about how amateur economist view the world
Sunday, January 25, 2009
Economic Crises and My Life: Part I The Direct Effect
I won't talk about how US financial crises affected this whole world or how Indonesian Government reacted to prevent those economic downturn. Newspaper and Magazines gives you that news almost everyday. Here I'm gonna' shares how crises has ruined my life. First, value of my financial assets, which 100% consist of stocks, dropped almost 50% from initial value. Thats makes me to changed my strategy from daily trader to investor or I preffered to say, to extending my investment term. Second, as economic slowdown and production shrink, unemployment will increase or at least company won't hire more worker. Unfortunately this year I will graduate, expected BA economics in August. One additional jobless in Indonesia, a country with 10 million unemployment, it's not a big deal I think. Third, this crises also changed my consumption bahavior. As a student I'm very depend on pocket money from my parents. When economic growth is expected to be slow down, people will save more maney and consume less. They will cut current consumption for future consumption as future income expected to decrease. Unfortunately my parents behaves such as homo economicus. As consequences, me, which is my parent son, will follow their changing behavior. It's bad...it's sucks. I usually smoke when I feel bad but now I would rather just write it down. This is what I call an adjustment.