Issue 5—November 26,2008
It is global warming of a different kind. The slowdown is gathering pace and people across the globe are feeling the heat. Those who had foreseen it have been taking gradual precautionary measures, while those who were living in denial have had to resort to knee-jerk reactions. The result of both, however, has been pay cuts, job cuts and expenditure cuts.
As CEOs size up their efficiency and down-size their staff, job protection becomes critical. Even though people have stopped travelling, their thoughts haven’t and a pall of gloom has descended. The trend suggests that the major beneficiaries will be psychiatrists and lawyers. Aren’t they usually?
Even as the impact in India has been mixed, reality has begun to set in. The government changes its growth estimates like a chameleon changes colour. After making us prisoners of an undying growth they now contemplate bail-out packages politely referred to as fiscal stimulus. As we approach the end of 2008, though, things may get better for the immediate term. Prices of investments could rise, as could the sales at the departmental stores. The year 2009 will be tough but at least we could end a miserable 2008 at a better note. After all, everybody wants a “Merry Christmas and a Happy New Year!”