Economics & Racing Beyond Our Means

Gary Smith · 04-12-2008, 03:10 AM

During these uncertain economic times I can't help but wonder how many racers are leveraged beyond their financial capabilities. I've heard stories of maxed credit, mortgaged homes, etc. I know there are several class racers who have the capital to operate within a respectable budget without interference of their daily lives. But I also know some who have "bet the ranch" on keeping their "program" at full tilt.

With all the doom and gloom coming from media outlets ordinarily isolated from typical mainstream hype, I wonder how many racers will fall victim to these unforseen circumstances? As housing prices plummet it has to have put several racers in a precarious state such as "upside down" equity. Or how many have reconsidered their direction and started shoring up losses by liquidating their operation to keep a roof over their heads?

There's a wide spectrum of personalities in this sport and how each of these individuals approach such difficult choices. Some will make the gamble and continue, keeping racing at the top, with an optimistic outlook that this is only temporary. Others will opt on the side of conservatism and pass on events. In the last few recession cycles wealth seemed to shift between various resources. But this time it looks like there aren't any new prospects, at least in my opinion. I wished there were a crystal ball to let us see into the future, both near and far term. For now though, fuel prices alone have made me very hesitant even for local participation.

I'd like to keep this a serious thread and hope others share the same sentiments, especially those who side on optimism as it's a subject I'm taking very seriously. This is by no means an attempt to "air someone's laundry" poke fun at, or make anyone look bad. Ultimately this could have a serious impact on our sport sooner than later.

04-12-2008, 03:10 AM	#1
Gary Smith Senior Member Join Date: Jul 2007 Location: Greensboro, NC Posts: 820 Likes: 9 Liked 132 Times in 30 Posts	Economics & Racing Beyond Our Means During these uncertain economic times I can't help but wonder how many racers are leveraged beyond their financial capabilities. I've heard stories of maxed credit, mortgaged homes, etc. I know there are several class racers who have the capital to operate within a respectable budget without interference of their daily lives. But I also know some who have "bet the ranch" on keeping their "program" at full tilt. With all the doom and gloom coming from media outlets ordinarily isolated from typical mainstream hype, I wonder how many racers will fall victim to these unforseen circumstances? As housing prices plummet it has to have put several racers in a precarious state such as "upside down" equity. Or how many have reconsidered their direction and started shoring up losses by liquidating their operation to keep a roof over their heads? There's a wide spectrum of personalities in this sport and how each of these individuals approach such difficult choices. Some will make the gamble and continue, keeping racing at the top, with an optimistic outlook that this is only temporary. Others will opt on the side of conservatism and pass on events. In the last few recession cycles wealth seemed to shift between various resources. But this time it looks like there aren't any new prospects, at least in my opinion. I wished there were a crystal ball to let us see into the future, both near and far term. For now though, fuel prices alone have made me very hesitant even for local participation. I'd like to keep this a serious thread and hope others share the same sentiments, especially those who side on optimism as it's a subject I'm taking very seriously. This is by no means an attempt to "air someone's laundry" poke fun at, or make anyone look bad. Ultimately this could have a serious impact on our sport sooner than later. __________________ Gary Smith "another broke racer spectating"