Sunday, February 15, 2009

2009 - Can It Get Worse Than Great Depression ??

We are about to witness a painful summer for Wall Street, nothing different from previous summers ........

Leveraged buyouts are responsible for this current scenario.....It is a very dangerous trend that has played its part in causing increasing defaults of companies and non-performing assets of banks going up..............

What will happen in the next six months is not known. Having read of recession & depression in the books....... Now I feel we are living in actual history..........

Nevertheless, we cannot lose hope as I am sure we are not at the end of a tunnel yet........ or is
Mayan doomsday prophecy on its way ??

16 comments:

Saurabh said...

i know it is too harsh and insensitive for me to write these words, but this is an interesting time for young people like us to learn a lot.. as an economics student, i came to learn a lot from this finacial crisis and global recession. all i can wish is that the global economies get back into good shape soon ( at least at the time when i complete my mba, and look for a lucrative investment banking job, i want the markets in rocking good position)... oops, i think i'm going to burn in hell, save me, Jesus !

Rahul Viswanath said...

@Saurabh : good luck with your MBA and I am sure you will get into lucrative investment banking job for sure ....... :)

Anonymous said...

Pessimism never won any battle.

अविनाश said...

I have been analyzing this recession at micro & macro level for some eight months now, the scenario altered radically with in a year. At present we have reached a point (particularly developed countries like USA, Germany & France) where the focus is not to revitalize the economy but to avert further damage so that it doesn’t turn from shoddier to catastrophic.

and if you peep into history the meltdown of 1929 lasted 3 years, and going by the policy adopted by the developed countries it will take whole of 2009 to stop economy from going catastrophic, revival…well I cant see that in any near future.

Rahul Viswanath said...

@अविनाश : Great observations & analysis .... I second most of it !!

Vijay Kumar Radhakrishnan said...

ha-ha...Good! We need to call it as American Depression...not "GREAT"

Bindu Nayar said...

I agree that it is unlikely for any major recovery to happen in 2009, but at the same time disagree with the extreme negativism by drawing similarities with the great depression..

Positivism personified..I doubt that it will get anything as bad as the 1930's, but the global economy will be on an extended recession...Its a lesson learnt at the same time..people should spend the value of their labor, not what they can borrow against their assets....

Rahul Viswanath said...

@Binduji : Agree ...... I like the last part " borrow against their assets...."

Twisted Elegance.... said...

Yeah!
The whole world is going to be destroyed. Don't forget to book your tickets for that mars flight!

Twisted Elegance.... said...

And after today's union budget I would like to call it the 'Congress Doomsday'

Rahul Viswanath said...

@Twisted : ROTGL ......
'Congress Doomsday' ....... Or you on the same flight as mine to Mars ??

divesh said...

hope is a powerful word my friend..

Rahul Viswanath said...

@Divesh : True and we are living by the same ........

Twisted Elegance.... said...

@Rahul
No man I have been invited by Maria Sharapova to accompany her in her private Jet

Rahul Viswanath said...

@Twisted : good luck bud .... have fun ..... so u were the guy whom she dumped Enrique for .... Hmmmmm .... small world !!!

Twisted Elegance.... said...

@Rahul
You aren't up to date with gossips man....she dumped enrique for me