September 29, 2009, 5:00 am

2008-2009 Recession Being Good for You!

by: The Financial Blogger    Category: Personal Finance
email this postEmail This Post Print This PostPrint This Post Post a CommentPost a Comment

recessionYup, your heard me right, the 2008-2009 recession is actually pretty good for all of us! Instead of looking at the recession as a walk in the desert, I prefer to see it as a cold winter of great warnings and doors of opportunities. It is true that recession hit very hard as a cold winter on those who didn’t protect themselves enough. When I talk about cold winter, I am talking about minus 40 degrees with 10 feet of snow… Many people have suffered from it but there is still a lot to learn from the current recession:

Investment opportunities

Buy when there is blood on the street”. This is probably my favourite quote from Wall Street. It is a bit violent, but it clearly determines the only moment where you should use market timing: when everybody else is avoiding it! Investing during a recession will make your investment portfolio jump like you could not have imagined. It’s a classic but nobody’s doing it L. As the cold winter strikes and everybody goes inside at the first sigi of snowflakes, you can be brave enough to stay outside. You will get your stuff ready for next spring while everybody is looking at you through the window with their hot chocolate thinking “what a crazy, poor man, he has to work all winter…”. Who’s going to be the crazy, poor man after the recession? Huh?

Frugal spending

Badass winters used to strike our country while our parents (or grandparents) didn’t have much to eat, talk about genuinely rough times. As is the case during a recession, it drives to you think about managing your resources and spending more responsibly. This is when you develop frugal habits (that you will soon forget once summer is back…). The 2009 recession will definitely encourage people to save money (Canadian and US savings rates are ridiculous… as close as a 1 year CD actually… near nothing!). Spend less and save more, you will be able to eat throughout winter!

Recession improves ecologic habits

During winter, we all try to use everything on hand instead of wasting it. It is exactly the same thing with a recession. The best example would be the famous Cash for Clunkers. Governments try to stimulate the economy while appearing green (it gets good press even though not the primary goal!). While you have less money in your pocket, recuperating your old stuff becomes the best idea you can have.

Appreciate things we have

I always laugh when I hear people talking about the weather in Quebec. They spend their whole summer complaining it is too hot and once winter arrives, they whine about the cold weather (want some cheese with that) … This is what happens during a recession, we miss the good old days where we had to work 60 hours a week. The human being is a weird beast; it has to lose something before appreciating it. So, if you are lucky enough to not be struck by the 2009 recession, please appreciate what you have and take care of it!

Improves creativity

As companies cut out the fat, the remaining employees have to do more with fewer resources. This is when creativity rises to its best: when there are no other solutions than finding a better way of doing things! This is how most companies will show increases in productivity and the profit margin as well in 2010 ;-0.

Good position for a promotion

As it is the case with creativity, if you stay with your company and you are not part of the “fat”, you have a pretty good opportunity to work hard and show you can manage the stress and pressure. There is a better than average chance you will be in the running for a promotion when things go better as most people around will react poorly during a recession. They will whine about people being laid off while they still have a job. They will complain that they have to work more or do things that was not in their “job description” (don’t you hate hearing that?!?). By being responsible and showing a positive attitude, you will surely make your way through the top despite the recession.

When you think about it, a recession is really like a badass winter. If you work hard and are patient enough, you will get great rewards once springtime arrives! Now, go get your coat on, it’s freezing this morning!

image source: Ed Yourdon

You Want More? Sign-up! ->
TFB VIP Newsletter

If you liked this articles, you might want to sign for my FULL RSS FEEDS. If you prefer to receive the posts in your email, subscribe CLICK HERE


You’re right; where there’s chaos, there’s opportunity and as some of your recent posts demonstrate, there are some great Canadian companies out there offering some pretty decent yields if you ask me, even as it appears as though the fog is clearing and our heads may be above water as markets stabilize to some degree.

I also agree and think a lot of investors may have learned a thing or two while living through this recession. Cats who had leveraged a lot of coin on equities or had serious margin calls happen virtually overnight may be altering their new personal asset allocation policies to say the least.


[…] Financial Blogger presents 2008-2009 Recession Being Good for You! posted at The Financial […]

[…] Financial Blogger presents 2008-2009 Recession Being Good for You! posted at The Financial […]

And who is it who is most likely to fall ill or die in those bitter cold winters? The young and the old. I’m part of the former group. I wasn’t cut from my company because I was part of “the fat” as you put it. My whole department was dropped. Whether I was the best or the worst at my job didn’t matter. Now I can’t find a job in this market because I don’t have enough experience. I can’t even get jobs that don’t pay my rent because I don’t have enough experience, even though I’ve been told, in phone calls where I was notified that I wouldn’t be getting a position, that I interviewed very well. Certainly this recession has not been good for me. The only people it’s good for are those who still have jobs, or those who have enough work experience to find them even when the market is glutted with job seekers.

good point, recessions are definitely not good for everyone. However, this will make you grow and you will learn a lot from this though experience.

good luck!


[…] recession is likely over’." And it was published in a Sep 29, 2009 blog titled "2008-2009 Recession Being Good for You!" It was also published as an illustration in an Oct 2009 Mahalo blog titled "Gray’s […]

[…] recession is likely over’." And it was published in a Sep 29, 2009 blog titled "2008-2009 Recession Being Good for You!" It was also published as an illustration in an Oct 2009 Mahalo blog titled "Gray’s […]

[…] recession is likely over’." And it was published in a Sep 29, 2009 blog titled "2008-2009 Recession Being Good for You!" It was also published as an illustration in an Oct 2009 Mahalo blog titled "Gray’s […]