Difference between revisions of "Business as Usual"
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The fiscal stimulus package was never heralded as the savior of the world financial problem. However, nobody expected the wound would take so long to heal once the band-aid of government support was removed. The high levels of government debt that burdened growth in Europe, especially Greece; Spain, and Ireland, kept investors on the sidelines. Market movements during the bleak days of 2011 were poignant, yet participation was low as the number of shares traded on a daily basis reached record lows. | The fiscal stimulus package was never heralded as the savior of the world financial problem. However, nobody expected the wound would take so long to heal once the band-aid of government support was removed. The high levels of government debt that burdened growth in Europe, especially Greece; Spain, and Ireland, kept investors on the sidelines. Market movements during the bleak days of 2011 were poignant, yet participation was low as the number of shares traded on a daily basis reached record lows. | ||
Corporations, once the pride of human innovation, had become the root of all evil. These institutions were no longer hiring. Corporations | Corporations, once the pride of human innovation, had become the root of all evil. These institutions were no longer hiring. Corporations that survived the great recession reined in spending and focused on delevering through 2015. In fact, many institutions who survived the recession were still struggling to tread water in the deep sea of illiquidity and lack of consumer demand. Corporations were making a profit and businesses were cash flow positive, yet, instead of using profits to grow core business management teams were using profits to pay down debt. | ||
The recession acted as a wake-up call to consumers. Consumers were no longer living on cheap credit. Credit reform around the globe reined in consumer spending and forced individuals to begin thinking about budgets and living with their means. This was no favor to businesses who continued to spend billions on marketing campaigns to entice shoppers to buy their goods. Yet, the effort was largely in vain as the unemployment rate in the EU and US was still above 9%. Without the return of consumer spending the stagnant growth experience from 2009 to 2012 was expect to stay for a few more years, no one expected it would remain for five. | The recession acted as a wake-up call to consumers. Consumers were no longer living on cheap credit. Credit reform around the globe reined in consumer spending and forced individuals to begin thinking about budgets and living with their means. This was no favor to businesses who continued to spend billions on marketing campaigns to entice shoppers to buy their goods. Yet, the effort was largely in vain as the unemployment rate in the EU and US was still above 9%. Without the return of consumer spending the stagnant growth experience from 2009 to 2012 was expect to stay for a few more years, no one expected it would remain for five. | ||
was expected to jump start economic growth and once again generate tax revenue by 2012. The receive the memo and tax revenues remained sluggish. The once large government coffers became empty. The austerity measures taken in 2010 did ease some of the pain, but citizens continued to demand support. Governments made the decision to cut non-essential spending and to support the unemployed. Constituents cheered as funds became available to feed their families, but the real | |||
they came to a quick end due to the high cost of green technology. The movement never caught hold and big oil maintained its strangle hold on world energy markets. Likewise, climate change initiatives remained a talking point among government, but no conclusive decision was made to reduce green house gases. Adoption of any new rules would push the world into deeper economic misery was the opinion among world leaders. | |||
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