Tough Economic Times: If we survive we’ll be stronger

It's a case of survival of the fittest

The 2009 financial crisis is not like the audible crash of 1929. This one seeped into our awareness somewhere around the middle of 2007. That's a long time ago but in terms of economic processes, a year and a half isn't long. It allowed us to get used to it gradually, so gradually that we just sat there and watched it happening like we weren't in the movie that was playing.

Not just a passing phase

Until recently, many felt it would be another passing episode. Stock markets continued to rise for a while. During the first half of 2008, the global economy outside the finance sector barely seemed to be affected, allowing commodity and oil prices to hit new heights.

In other words, a year after the credit crisis began appearing in the balance sheets of banks and financial institutions, prices were still climbing. People were still taking Installment Loans and carrying on as though there had been no change.

The new sobriety

But the problems keep getting worse. On the financial side, the sheer force of the losses and liquidity difficulties have intensified enormously, forcing governments the world around to take steps to try and keep the trouble from spreading.

Demand in the real world has plunged. Company after company, in sector after sector, report pullbacks in sales and profits. Whence the sudden plunge in demand? Why are wallets snapping shut around the world with such rapidity? ... click here to read the rest of the article titled "Tough Economic Times: If we survive we'll be stronger"