“Recession is when a neighbor loses his job. Depression is when you lose yours.”
The helm of affairs boiling up in the current world economic affairs has put many people under a fix. Economics and experts around the globe are trying to make sense of the way the global economy is progressing. Recession is usually categorized as U, V, W or L but for the latest recession that the world faced a new category is needed. Recession has come to pass but the current recession is moving like a spiral. Hence, it would not be wrong to categorize this recession as 'O' shaped recession.
No matter from which point you start and make an effort to decipher this recession, you will end reaching the same spot from where you had started. This economic depression has sent jitters down the spine of world economy just a couple of years ago and we have not been able to cope up with it yet. The hike in prices of basic commodities is a curse of this depression.
It's a common know-how in economic circles that our economy goes through periodic highs and lows over a time. However, the recent recession has perplexed everyone. First, companies went bust due to bad investment in the US and government bailed them out. Things started looking better but then so much pressure was created on government funds that they are facing a severe crunch of resources. Now, desperate attempts are being made to make sure that the government can get some air to breathe in the time of crisis. No one knows how this depression is going to affect people across the globe or in what direction this recession heading. We are back to where we started in 2008 and it's moving in a vicious circle for now which seems really hard to break by the current policies.
Unemployment is high, underemployed figures are staggering, this shows the extent to which the world's most powerful economy has been affected by this economic depression. The world's greatest economists have also raised their hands against this recession and it’s the common man who has no option left but to wait and watch. I think, only way to get out of this ‘O’ shaped recession is to promote Entrepreneurship. We need guys, who are smart and hungry to redefine the economy in these challenging times.
Robin Trehan is M&A expert. More information www.businesscreditfunding.com