Everyone around seems be worried about how the economic slowdown, whose fears are looming large. The US economy seems to be headed for biggest crisis since the depression in 1929. The multiplier effect of the slowdown in US will spread to the rest of the world. Whether we accept it or not, any problem that US faces becomes a global problem, be it terrorism or financial crisis. So now that recession in US has set in, the world economy, especially Indian is going to get affected.
I don’t know why I get excited when I come across this term “recession”. There is a sense of fantasy built around this word. People are losing jobs across the world, some have lost their savings of their lifetime and some have even lost their houses. I do feel bad for these greedy I-Bankers and speculators, but still I anxiously wait for recession to set in. These are challenging times to face for everyone. People will find it very difficult to make money and even more difficult to save some of it.
There are a lot of positives out this current recession. People were making money out of thin air, that’s going to stop and people will come to a realistic age. They were spending as if the world starts and ends with them, without thinking of future generations. American were using gas guzzlers & MUVs, going on a vacation every weekend. They have no regard for climate change and energy conservation. Now that’s going to stop, which will reduce the consumption of gasoline and will be saved for future generations to come. The price of crude will come to realistic levels with reduction in demand. People will have started to consume less junk food since they have less money left around with them and are aware of huge medical cost that one bears with consuming this. People in west have started to spend their weekend in their houses with children around. This is happening because they are not having money left to spent, rather than for their children’s good. Nevertheless, it will do some good to their children’s psychological heath.
I don’t know why I get excited when I come across this term “recession”. There is a sense of fantasy built around this word. People are losing jobs across the world, some have lost their savings of their lifetime and some have even lost their houses. I do feel bad for these greedy I-Bankers and speculators, but still I anxiously wait for recession to set in. These are challenging times to face for everyone. People will find it very difficult to make money and even more difficult to save some of it.
There are a lot of positives out this current recession. People were making money out of thin air, that’s going to stop and people will come to a realistic age. They were spending as if the world starts and ends with them, without thinking of future generations. American were using gas guzzlers & MUVs, going on a vacation every weekend. They have no regard for climate change and energy conservation. Now that’s going to stop, which will reduce the consumption of gasoline and will be saved for future generations to come. The price of crude will come to realistic levels with reduction in demand. People will have started to consume less junk food since they have less money left around with them and are aware of huge medical cost that one bears with consuming this. People in west have started to spend their weekend in their houses with children around. This is happening because they are not having money left to spent, rather than for their children’s good. Nevertheless, it will do some good to their children’s psychological heath.
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Some survey in the west found that due to recession and the crisis even hardcore atheists have started praying god. Well finally… the fan count for Jesus is increasing... Courtesy financial crisis…lol…According to me, the umbilical of the problem is the American attitude to spend more than what they earn. Americans are the best spender and the worst savers in the world. The only comfort Americans enjoyed was that they could print unlimited quantity of Dollars and have huge debt, which they will find it difficult to repay. The exporters were very happy to retain the paper dollars and invested them in US treasuries because they were considered safe. I believe investing in US bonds could be the worst kind of investment at this point of time. The huge supply of US dollar has been the one of the major reasons for its depreciation against all major currencies. Few years down the lane we could see countries stocking more of Chinese Yen, Indian rupee and Russian ruble more than the US dollar.
India and the other developing countries will find themselves in similar position like that of the erstwhile USSR during World War II. Even though these countries would be affected by this crisis but they would emerge stronger than ever before. Their dependence on US will reduce and also a will their domestic economy strengthen. Few years back, Citibank was planning to buyout the HDFC bank India and could mange to buy some stake in it. Some people (like me…lol) with some ability to think creatively (and at times bit weirdly) can see HDFC buying out Citi rather than the other way around…
1 comments:
Mann!! Tat does make sense... I agree with you... happy recession.. as long as we see some material gains in it! ;)Good one!
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