Mutated Economy

I was writing up an article earlier on the eventuality of the current economic downturn, affecting investors particularly in real estate, and I came across several disturbing write-ups by a number of revered financial experts during research. The good news is, and their track records proves this, these so called financial gurus are almost never right with their predictions, they're even more fallible than weather forecasters. The bad news is even when coming up with these predictions, which is usually based on previous market trends, everyone seems to agree that none of them thought that the economy was going to be this capricious, this uncertain.

Apparently, they cant quite label the economy right now, its not exactly a recession, nor it is a depression. That’s because a recession is usually an indicator that the current financial markets have reached its peak, or its zenith as the economists would call it, in its current characteristic, and in order for it to top that barrier it has to first push back a little, which usually means considerable amounts of layoffs, a lot of selling, a seize in spending, the world stops for a while, slowly gains momentum and hits that ceiling with force, breaking that barrier, regenerates, and a new healthier market emerges. Its just like when we fall sick, our immune system breaks down, then we get better and our bodies become stronger and more resistant to illnesses than before.

The current economic phenomena is somewhat unique in nature because usually, by now at least, there should already be signs of a comeback, clearer indicators should’ve manifested itself by now, but none is at sight, nada, zilch, which brings back the calls of a depression, but not really either, and here’s the irony; during the great depression almost 20 percent of global workforce was effected, and although alarming, the current layoffs have not even reached 1 percent worldwide. To make things stranger, the foreign exchange markets although understandably affected, is still manageable, and in that sense, a far cry from the early 1930s. So there's something very wrong here, it seems that the current economy has a mind of its own, nothing about it is conventional anymore. It refuses to follow these set rules or financial theories any longer, almost mutated, or for want of a better word, evolved. Its almost rewriting history. What we thought was isn’t what it is any longer. It doesn’t make any sense but yet, somehow, it does.

Now the more important question, will the deliberate stimulus packages which seems to be a popular fix-it trend amongst nations today, who can afford it at least, be the solution, or should we do it old-school and offer massive tax breaks. Should we really be giving money back to the very institutions that got us into this mess in the first place? Is it fair that the government is spending hard earned tax payers money to bail out these irresponsible sanctimonious corporations which are ungratefully retrenching their loyal workers by the thousands but still continues to pay large bonuses to their unworthy directors?

Well, that’s exactly what will happen, has happen, and will continue to happen.