It came, it conquered and everybody noticed, also swept with it some of the best Fortune 500 companies, leaving behind worries and a drought of jobs. Also left some of the best financial analysts and economists in a tizzy in the Silicon Valley, Wall Street, etc and also the Dalal Street back in India. Some of the analysts in leading companies are still mulling as to what drove the recession out of it's den and what hit them in their back to which they were too late to react. A simple gaze at the progress charts of some of the leading fortune 500 companies like Microsoft, IBM, Dell, HP, Citi financial shows a big dent in their fortune due to recession. Layoffs, massive restructuring plans, salary cuts, etc - they have seen it all. And there are some like Lehmann Bros., American Bank, Meryll Lynch which have faded into total obscurity and now lay in the hands of U.S. government with no clear sight ahead on it's future. No one would have ever though in their wildest nightmares that companies like these which once offered the best recruitment packages to MBA students would see such a climax.
The U.S. administration still seem to be in a loop and in a fix. Two stimulus monetary injections later, Barack Obama still finds himself under pressure to release a third one into the economy. If that still doesn't seem enough, add to it Obama's policy of safeguarding local employment and discouraging outsourcing in companies is already creating a sense of displeasure among his supporters. Do I need to describe the great recession of this century even more ? No, even I'm saturated describing it and falling short of words.
So, a wonderful question pop's out while I write this. How did it all began ? What drove the Lion out of it's den? Like all say, a disaster is born out of another blunder or disaster and the question lives up to the proverb. It all began after the 9/11 attacks in U.S. Now nobody can forget what happened on that day even if they want to. Following the event, some rave, careless decisions and policies adopted by the U.S. administration under the pretext of ' War on Terrorism ' saw the government recklessly spending (rather would call it splurging) billions on it's spineless pursuit of it's intent. Other factors include absence of some some much needed policies for the welfare of the public, too much money being borrowed by businesses, corporates and individuals to fund capital expenditure at the same time period, etc. Guess what, the tumult was slowly and narrowly building on the spine of the economy and when it ran out of it's capacity to bear more, it broke. The money being borrowed by the US. inhabitants was enormous and when there was a sudden stop to it their homes, appliances, vehicles and other assets had to be mortgaged. Money in any form was now a very precious asset to own.
Same is the case with companies and businesses. And since a majority of the Fortune 500 companies have their roots in U.S. the reverberations were devastating and businesses world-wide had to face it's course. Falling stock prices, insecurity, lower GDP growth all followed and all had to witnessed with their hands-folded. Some even worse stories are very much evident even now. But that was the story then. A lot of steam has passed since the bad times and now the times are changing. What's really good to see is that stock prices have again surged, GDP growth have shown a sharp rise, economies have recuperated really well and that's a start to a new story altogether. GOOD TIMES FOLLOW THE BAD ONE's. And it's indeed true.
Another question pop's out of my mind when I reach here - How much of an impact did the recession have on our minds ? Interesting, Huh !!
It seems the impact on our minds is much more deep rather than on the economy. For those who believe in introspection would surely go with my judgement. And yes, a lot of counsellors and spiritual gurus would also affirm my judgement for they've had the maximum number of patients and devotees in this period. Temples and churches have seen a sudden surge in monetary contributions from their worshippers and are an asset to own. No wonder, all matters of love, heart, mind, soul and money start from a Coffee shop and end up at a Wine shop or a temple. And the kind of character which people show in such periods is also worth a mention. Consider a case, my nearby Vada-Pav wala is also crying foul everyday in this slack period - reason - "Recession, so less spending among the customers". I would rather blame the guy who inculcated this sentiment of recession in him.
The U.S. administration still seem to be in a loop and in a fix. Two stimulus monetary injections later, Barack Obama still finds himself under pressure to release a third one into the economy. If that still doesn't seem enough, add to it Obama's policy of safeguarding local employment and discouraging outsourcing in companies is already creating a sense of displeasure among his supporters. Do I need to describe the great recession of this century even more ? No, even I'm saturated describing it and falling short of words.
So, a wonderful question pop's out while I write this. How did it all began ? What drove the Lion out of it's den? Like all say, a disaster is born out of another blunder or disaster and the question lives up to the proverb. It all began after the 9/11 attacks in U.S. Now nobody can forget what happened on that day even if they want to. Following the event, some rave, careless decisions and policies adopted by the U.S. administration under the pretext of ' War on Terrorism ' saw the government recklessly spending (rather would call it splurging) billions on it's spineless pursuit of it's intent. Other factors include absence of some some much needed policies for the welfare of the public, too much money being borrowed by businesses, corporates and individuals to fund capital expenditure at the same time period, etc. Guess what, the tumult was slowly and narrowly building on the spine of the economy and when it ran out of it's capacity to bear more, it broke. The money being borrowed by the US. inhabitants was enormous and when there was a sudden stop to it their homes, appliances, vehicles and other assets had to be mortgaged. Money in any form was now a very precious asset to own.
Same is the case with companies and businesses. And since a majority of the Fortune 500 companies have their roots in U.S. the reverberations were devastating and businesses world-wide had to face it's course. Falling stock prices, insecurity, lower GDP growth all followed and all had to witnessed with their hands-folded. Some even worse stories are very much evident even now. But that was the story then. A lot of steam has passed since the bad times and now the times are changing. What's really good to see is that stock prices have again surged, GDP growth have shown a sharp rise, economies have recuperated really well and that's a start to a new story altogether. GOOD TIMES FOLLOW THE BAD ONE's. And it's indeed true.
Another question pop's out of my mind when I reach here - How much of an impact did the recession have on our minds ? Interesting, Huh !!
It seems the impact on our minds is much more deep rather than on the economy. For those who believe in introspection would surely go with my judgement. And yes, a lot of counsellors and spiritual gurus would also affirm my judgement for they've had the maximum number of patients and devotees in this period. Temples and churches have seen a sudden surge in monetary contributions from their worshippers and are an asset to own. No wonder, all matters of love, heart, mind, soul and money start from a Coffee shop and end up at a Wine shop or a temple. And the kind of character which people show in such periods is also worth a mention. Consider a case, my nearby Vada-Pav wala is also crying foul everyday in this slack period - reason - "Recession, so less spending among the customers". I would rather blame the guy who inculcated this sentiment of recession in him.
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