The Recession In US and its Effect on me

As I begin to write this very first blog of mine I am kind of tired and sick of the endless news stream flowing from US to India and for that matter everywhere in the world about what a mess those bunch of investment bankers and loan companies have got us into.

The difference between US Economy and Indian Economy

The US economy is far more free and transparent(Now I have my doubts ) than we have it in India.
The banks and bankers and the of course the Fed thinks that the companies by way of the market forces are forced into competition and hence these have a good mount of self regulation.
But the big question now is whether that was enough as you can see that the big companies were merely blind in search of profits and the booming housing market and that meant that since all the firms were doing that it was OK.

Now it seems the government will be playing a larger role than ever with companies like AIG and what not have the government stake in it as well as a lot of taxpayers money with it.
Please take care of it Mr Obama and best of luck

The Indian Economy

The Indian economy in that sense is much much regulated and that means that these firms are not allowed a lot of leeway the way the US companies are allowed to do so and that in turn means that you have a sort of less than absolute free economy.

In today's world that has turned out to be very good as that has meant that banks as well as other investment firms have not played away unabashedly with the stock market, the housing market as well as the derivatives market or the new set of havoc wreaking instruments like the CDO's . Thank Goodness for that ! The stock market news has been bad for a year now with no end in sight.

We Depend on the US economy

But the story does not end here as we as in most of the companies especially those in the IT sector or the export oriented units for textiles as well big refineries like Reliance Petroleum do have US as the main market .
So if our main customer is not spending then what we as service providers do but rather be out of job.

The Vicious Cycle Of Economic Recession and Downturn

A lot of people in the US have been laid off or as they call it let go which means that they will not spend which in tun means that lot of US companies in retail and manufacturing do not have customers and hence they stop the major IT development projects and that way more people get laid off in software firms as well as a lot of outsourcing firms in India get impacted.

Since consumers are not buying that means that means that a lot of export oriented units in India and China and other countries like Vietnam get impacted and hence the workers employed in these firms also get impacted .

So now there are less consumers everywhere and then there is economic recession is everywhere.

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Government Spending.. The Big Push

Who has the money now and of course it is the big brother or the Government and they can stimulate the economy by pouring money onto infrastructure projects as well as other projects to break the hold of the vicious cycle. The best way is to start a web business and get away from the effect of recession

wishing you a very happy new year so that we go in a less severe recession from where the Economy recovers fast.