Roughing Out The Recession
I was at our future office’s site, still in disbelief that we’re actually creating a business at this point of time. Everybody is being hit hard by this economic situation. We are all feeling the pinch. Yesterday, myself and the missus were in deep conversation about methods of roughing out this nasty weather. Mostly cutbacks on our daily spending.
Though the situation looks pretty bleak right now, we should persevere and not to give up easily. Last week CIMB laid off gave 6 months unpaid leave to some of its staff and in the news today,CIMB will also close nearly 60 surplus branches in 2009 in order to save RM60 million. Click more here
Some likened this global recession to the Great Depression of the 1930s. Some chose to ignore this and simply calls it a financial crisis. To compare the events of the 1930s to the modern age of 2000s is wide. The one thing that the world has got going today is invaluable historical experience from the Great Depression. For instance what sparked the Great Depression was that the US raised the interest rates instead of lowering them. The Nobel Prize was won by economist Milton Friedman largely due to his explanation when the US government raised the interest rates that action instead suffocated investment and diminished the money supply. Read more here.
Then this make me think; people then didn’t know what to expect from something unprecedented. In the end, life went on and now here we are.
A person committed suicide recently due to bad debts. He left behind his wife and kids. Later I found out that he was a victim of loan sharks. The poor fellow had no other alternative to pay so in the end he took his own life…
Another recent death, but this time due to alcoholic abuse, it was discovered that the deceased owed some money to loan sharks. And now since he’s passed on, the loan sharks are now targeting the widow who happens to be a janitor at the loan shark’s office!
I’ve included these personal stories for reflective purposes. My message here is simply not to give in to any form of pressure despite the odds. Problems are everywhere but so are the solutions. During these times prayers are invaluable sources of relief. Somehow or rather, God will help us through these difficult times but we would still have to do our part, that is to have faith and not giving up on hope.
Praying for wisdom, tolerance, hope and calm are in my prayers.
Finally I’ve included Tun M’s warning to Malaysia of its part in the current global economy crisis. Whatever happened during the recent weeks, I feel that Tun M has got a point (and more!) in his concern of the economy. Hate him or love him, I leave it to your judgement about the Bernama article below.
Personally I agree with him.
MALAYSIA MUST BE READY TO FACE A GLOBAL ECONOMY: MAHATHIR
(Bernama) — Malaysia must be ready to face a global economic situation that is getting worse, says former Prime Minister Tun Dr Mahathir Mohamad.
“Malaysia will have to certainly face the effects of the world economy as it is a trading nation and its economy depends on exports. If our trading partners face economic problems, our exports will be jeopordised,” he said in his speech at the entrepreneurs awards ceremony held by the Kuala Lumpur Malay Chamber of Commerce Malaysia today.
He said Malaysia can no longer claim that it will not face an impact as bad as other countries’.
“If they are poor, we will also be poor,” he said, reminding participants at the event on Malaysia’s dependency on other countries.
He said to face the current economic crisis, Malaysia could use the same measures that it took during the 1997 financial crisis.
At that time, all information and data were studied in detail and their changes checked everyday, and the best measure adopted to tackle them.
He also called on Malaysians not to be complacent as the country in reality had yet to fully recover from the 1997 financial crisis.
It would take a while to recover from an economic crisis, he said.
“We have yet to really recover from the 1997 crisis although it has been 10 years,” he said, referring to the value of the ringgit which is currently at close to 3.60 against the US dollar compared with an exchange rate of RM2.50 before the 1997 crisis.
Take care everybody and be good to one another!