Friday, February 20, 2009

Economic Situation

Things in the past 3-4 months have changed so drastically that it has become totally unpredictable. You will not know what can happen next. Global economies have become shaky, almost 50% of the global economies having already entered recession (formally), the remaining are as good as on a similar path, and growth has turned negative.

The once mighty organizations, institutions and even the High Profile/ Super Rich have fallen from grace. The change hasn’t been restricted to only the organizations or only few super rich, it has equally, if not more, impacted most of the commodities, stock markets, jobs, and so on. It is as if everything has been impacted in some way or the other. Even just the cursory analysis has thrown up these major observations;

1. Magnitude of Change -What baffles is the magnitude of this change. The crude oil not so long ago had climbed to an all time level of US$ 147 per barrel has come crashing down to US$ 36-37. That’s a whopping 75% reduction from the peak. The scale of change in other parameters is no different.

2. These changes were not triggered by any natural calamity - There was no natural calamity, which triggered these events. This was purely an effect of human actions or inactions.

3. The impact is Global - There is no country on this planet, which had the fortune of having escaped this downturn. The economies of the countries are so integrated that the impact has been far-reaching.

4. Pervasiveness - This is all too pervasive in its character. Not only the smaller ones suffered, the big and mighty ones have been the most sufferers. One might be tempted to say that the trigger has been the all-too greedy nature of the business practices employed by the Giants of the so-called World’s Top Financial Services Organization. Whether the over-leveraging of paper assets have been the trigger or the fundamental flaw in creation of a housing bubble in the US has been the trigger, no one knows. The impact has however been wide spread and every segment of industry is impacted to some extent or the other. I wonder if we can find something called as “recession proof”! Sure, there will be lesser impacts on some, but no one will be impact-proof.

5. It’s a great leveler - Whatever may be the root cause; the impact is far reaching and has acted as a great leveler of sorts. The mighty can no longer wield the same kind of power and the ones aspiring to be one will need many more years to get to that spot. Warren Buffet, the highly regarded Investment Guru, too has suffered in this downturn and admitted the mistakes he made.

Tuesday, January 20, 2009

New Year Resolutions!

New Year, New Resolutions!! No that’s old saying, isn’t it?New Year to me means new beginnings, starting things afresh, wiping out the slate clean, forgetting the past, looking forward to the future, making new friends, breaking new grounds, analyzing one’s past mistakes and learning to make best from these in future. It also means unlocking your mind, overcoming your mental obstacles, trying to do the unthinkable.

It’s almost like getting a new car to drive every year! All the problems of your old, over-used car going away and you are getting a brand new one to drive, to explore things unexplored so far, visiting new destinations, soaking up the smell of that new upholstery and so on..Wouldn’t it be great if life too can be just like this? Most of you would say, ‘no it can’t be’. Really so? I think it can still be, if you look at it from such a broader view point. How is it possible? It’s no rocket science!! In my opinion, even a small effort in taking stock of your life’s goals (if you have already defined them) or even sitting down to list these down if you haven’t started yet, is all that is required to start with. Find out where you stand with respect to these goals, don’t sulk about the things you didn’t or couldn’t do last year. And then plan for taking action/s in the New Year.

New Year, New Year, Oh, you are already here,

What will I do this year, I am not so sure!

Will it be just like last year, or will be any different?

Leave all such thoughts behind, because only you can make the difference!

Look at it like it’s completely a new beginning,

Starting afresh, let’s give life altogether a new meaning!

It’s time to look ahead and plan for what’s going to be on your plate,

And it’s time to forget the past mistakes and wipe out clean your slate!

It’s time to meet new people and make new friends,

It’s also the time to explore and break new grounds!

Look at your long term goals and take charge of your life,

Plan now and bring the balance back in your life!