Recession
The apparent fiction of investment banking
Friday, March 20th, 2009 | Economy, Investment | No Comments
Irrespective of one’s view of the actual effect of the current financial crisis on the wider economy, it’s rare to watch the news now without hearing about various companies and organisations slashing 500 or 1000 jobs. There is little doubt that organisations in almost all industries and businesses are now shedding staff in response to the continued economic downturn and its anticipated continuation. Some industries and businesses more than others inevitably, but those totally immune are few and far between. One theoretical positive to come out of failing investment banks and fund managers though is that the better minds graduating from colleges and universities around the world might now be more likely to migrate into the fields of science, technology and engineering – following the money which the Obama administration has pledged and moving away from the sectors that will be unable to fund the salaries and bonuses seen in recent years. Maybe it’s not a bad thing that this seems likely to be a move away from the apparent fiction of investment banking and into areas that will arguably progress and benefit society as a whole to a greater extent. One hates to think of how much further ahead we would be in the fight against diseases like cancer in a more rational world.
2009 begins
Friday, February 13th, 2009 | Economy | 1 Comment
For all intents and purposes the business year in Australia has now started – the inevitable increase in peak hour traffic with the majority returning from summer holidays is testament to this. January does tend to be slow for those who aren’t away, and this year even more so for the slowdown in the economy happening around us. Although having said this, many industries in Australia appear unaffected; earlier in the week I ate out, for example, and no one seemed to have told the busy restaurant nor its diners of the world recession. Surely one could be forgiven for thinking that if we had less negative sentiment from the media etc we might be able to get through this more quickly and with less severity. Self fulfilling prophecies and reduced spending, but I’ll leave that topic for university professors. Certainly in some sectors – especially finance and banking, and more recently mining which must be seen as a particular concern – there have been job cuts and even companies becoming insolvent, but to a large extent Australia seems to have been somewhat sheltered. At least so far. And so with little optimism and cash payments for all on the way from the Australian Government, 2009 begins.