20 October 2008
Peter Jones of the Dragon’s Den recently stated that we are talking ourselves into a recession. I wholly agree with that sentiment.
Whilst the newspapers bemoan plummeting house prices and wail about the soaring cost of living, our spirit becomes downtrodden and people forget what it is to fight.
Think positive. Things aren’t as bad as they seem in the hyped-up media. Businesses can still thrive in the current economic climate. Mass psychology determines the directions of markets in the same way mob mentality determines whether a Big Brother contestant is liked or not.
Because people sell as soon as they think a market is going down, it will decrease in value. Market recession is a self fulfilling prophesy.
The rate of growth in the economy is slowing – there’s no doubt about it. But it couldn’t continue at its previous rate. Meanwhile, the poisonous effects of the banking sector on the economy’s current state is largely self-inflicted by the greed of banks freely lending money. And although changes are visible on the high-street, with shops shutting down, this has been happening for quite some time. It is nothing new.
Despite the credit crunch, the economy of Britain is still on the rise. At the recent 0.3% increase it is weak by usual standards, but we are by no means in negative territory at this time. Sadly we are likely to talk ourselves into one though.