Credit Crunch And Its Impact On Your Lfs

peter22UK

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ok,

so ive noticed recently that my LFS has been alot quieter.............its got me worried..........if the credit crunch makes my lfs go out of business.............where do i get my fish??



ATTENTION EVERYBODY

SUPPORT YOUR LFS
 
This credit crunch stuff is a load of rubbish, i have not noticed anything different, if the shop is well run it will be fine, no worries.

How is your fish after the white spot? hope all is ok.
 
I'm guessing that for many people things like:

Mortgage/Rent
Council Tax
Electricity
Gas
Oil
Fuel
Food

For themselves will all rank higher than someone else's business.
 
i thought the credit crunch was a cereal...

xD! Two minds think alike?

But really, whats Credit Crunch? And if I loose my lfs, i'll have to go by a 1-2H skytrain ride to buy my fishes at Big Al..

(My LFS is a small unknown pet store in the mall. :D Sucks that my other one that was pretty good was shut down. .___. For gods sake they replaced it for a dollar store no one goes to.. the lfs use to be popular. Oh! And theres always walmart! :D
 
i don't live too far from krib12 and my lfs is doing fine.they even expanded their saltwater section.
 
One of the problems we are having in Australia is the dollar falling compared to the US dollar. The US economic crisis is causing our Aussie dollar to drop and it is down to 56cents or something like that. This means any fish we buy from overseas will cost nearly twice as much as it did in January this year. Neon tetras have skyrocketed in price as have guppies and most other commonly imported fishes.
Soon the price of pumps, filters, heaters, etc will start to go up rapidly as well due to the weak Aussie dollar.

Can someone explain to me why my dollar gets weaker when it is the US that is going into a recession?
 
Hey Colin, what happened to your claim that we had started to enter the period when governments would start to stockpile oil and no ordinary person would be able to travel? What a difference a few months make ;)

The reason the AUS$ is falling against the US$ is because the Australian economy has a fair weighting to commodities. If you look, commodities are falling too. Because people don't want commodities as much they do not need to buy them from Australian producers so people are buying fewer AUS$.

This is not the credit crunch any more. The credit crunch was a more short term effect as banks started to try and hold onto money as they did not know how many bad debts they all have. The US sub prime mortgages have ben repackaged and sold on so many times that no one knows, even now, what level of exposure anyone has to it.

Add to this the huge problems with credit default swaps where banks are finding they have borrowed against assets which aren't worth as much as they claimed and you have the banking system getting a problem From there the banks stop lending to each other and, more importantly, to the individual and businesses. Many people and businesses have been operating on debt for some time safe in the knowledge that it s cheap and they can remortgage as the house prices keep going up.

Now they can't re-finance and the house price is heading south so businesses realise their cash flow could get tight, especially as there is the potential for their debtors to go insolvent and thus the balance sheet takes another hit.

These are truly interesting times (and exciting too if, like me, you work in insolvency :D )
 
Can someone explain to me why my dollar gets weaker when it is the US that is going into a recession?

Because Canada, China, Japan, most of Europe, Russia, India parts of the Middle East and South America are also going into a recession to varying extents. That's enough countries that basically every country on Earth is dependent on something from them, and the few countries that aren't particularly still depend on exports to those countries. Major importers go into a recession, imports go down, meaning the countries of origin lose money.

The recession has been a massacre in Michigan, we've been verging on a depression since the .com boom - the state never fully recovered from the recession in the early 90's thanks to GM and Ford historically accounting for half of our employment. So far, two LFS have gone out of business in Saginaw County, a third will probably be gone by the end of the year, and a fourth has almost stopped out of state shipments, and is mostly selling sparse locally bred stock. If you want guppies or convicts, you can buy them by the hundred, but anything else and you're a bit out of luck. Soldans has apparently cancelled plans for some new stores, since the locations are back up for lease again.

Edit: The practical upshot, though, is that the surviving stores, especially Aquatic Gardens, are making bank. There's a lot of major collectors in the area, and every office has a big fish tank to be stocked. Things were always tight for the stores with seven stores in town and two more in reasonable driving distance. With things thinning out, the remaining stores have managed to improve their stock. Depending on how much worse things get, we'll see what becomes of that, though.
 
what the! if everyones goin down then whos going up because its not as if all the money is disappearing into thin air! I bet its the government this is just another little sneaky tax(i say little but..)
 

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