November 21st, 2008
02:35 PM GMT
Ever wondered why we are so worried about falling prices? And how worrying about them can become part of the problem?
Can a simple sofa lead to bigger problems?
Let me offer my own, real experience: I was going to buy a new sofa this month. I have found the one I like in the color I want
I suddenly realized: Hey, prices are falling. I can make do with my old one until the replacement becomes cheaper, or I will buy it in the January sales, when I might get a bargain.
So this month I haven't bought the sofa. The shop didn't get the sale. The factory didn't get the order.
The same may happen next month, and the month after. Certainly I want a new sofa, but I don't want to find the same chair cheaper in a month or two's time.
Of course, by this time the economy will have worsened and I may be more concerned about saving for even worse times ahead - at this rate, the dratted sofa may not get bought until next summer.
Multiply my decision by everyone else and you see how the economic crises - coupled with falling prices - is disastrous.
Now tell me, what changes in shopping or economc decisions have YOU made that, if multiplied, will have a major effect? What purchases are you putting off? What vacations are you not taking, and what home improvements have you delayed?
Let me know, so we can truly see the size and scale of this problem. Watch Jasmine Birtles of Money Magpie.com answer your questions and comments.
About Business 360
CNN International's business anchors and correspondents get to grips with the issues affecting world business, and they want your questions and feedback.