A lesson on recession
One of the hobbies I have is playing the 5-string Banjo. My favorite Banjo manufacturer is Deering Banjo Company. They are hand made in Spring Vally California, are very fairly priced considering their quality and they have a very unique sound that I really enjoy and can recognize almost immediately. Deering occasionally will send me an email announcing some new banjo or banjo related product they have come out with. I always read them and look forward to their announcements.
I received one such email from them late last week, quickly opened it up so see what new banjo model I could drool over (the one I really want is $2,699.00). To my surprise, it wasn’t an announcement at all, nor was it an insider story about Deering, but a story not related to banjos at all, but a story about finance and our current economy. I thought I’d share it with you:
The hotdog story
Once there was a man who owned a hot dog stand that he ran by the side of the road. For years he treated his customers right, sold good quality hot dogs to lots of people who stopped by to purchase from him. He even made enough money to send his son to college. He wanted his son to be an educated man and successful in the world. So his son went away to college and several years later he returned with his diploma in hand. The man was very pleased to have an educated son who could help him in his business.
The next day his son heard him placing his order for hot dogs and commented that he was surprised that he would order so many hot dogs, “Hadn’t he heard that there is a recession going on?” The man thought about this and concluded that his son had a college education and must know what he was talking about so he cut back his order for hot dogs. People continued to stop at the hot dog stand, but by rush hour the man had run out of hot dogs. He had to turn customers away. After a few times of stopping by and finding the man out of hot dogs his regular customers stopped coming by. As this continued for a while and less and less people stopped to buy hot dogs, the man’s income dropped to the point that he could not pay his bills and he went out of business.
From all this the man concluded “His son must be right, there is a recession going on!
They say perception is reality and I believe it. Right now the media and many people, including our politicians, want us to believe we are in a serious recession. Everyone is talking about it right? I must be true right? Are you going to start ordering less hotdogs?