January blues

A perfect storm was brewing in 2007/8. Steady increase interest rate, constant climbing inflation, hot housing market, seemed too good to be true. Then it was the commodity prices going through the roof and the realization that the bullish market was only an illusion. People then woke up and the market started to crash, Bear Sterns, then Leiman Brothers, AIG, Citigroup, …

Bad news all over the world. Finally, everyone is admitting that we are in a recession. What’s wrong with saying the R word? The main thing is how we can get out of it.

Is Obama’s reign going to help? Stimulus packages? Open talks with Iran?

What are the true implications of all the jobs lost? I believe this is only the beginning. The job lost won’t just affect a few industries, but it will trickle to all industries, it’s just a matter of time. Think about it, even dentists will be earning less when less are employed with benefits. Don’t think anyone is immune.

Companies are starting a wave of layoffs, cut backs on spending, whatever it takes to cut overhead with no revenue generation. R&D divisions are all downsized, many companies going through M & A’s. The most frightening thing is, no one is able to predict or offer solutions on how to tackle this massive problem.

On a brighter note though, in an economy such as now, there are still companies that are doing well, companies focusing on alternative energy sources, and of course, McDonald’s! I’m sure there are more companies that can fight through this tough time, hopefully, my company is one of them!

If you also have something to share on this topic, please feel free!