The “R” Word
The big news from the past two days (since the attacks in Mumbai) is the declaration that the United States is in a recession. The stock market had bad news the day of the announcement, and a bump up the day after.
But I’m not really sure what to make of the “news.” It was pretty clear that the economy was having a tough time before the official pronouncement.
I’m not an economist, and I haven’t conducted detailed studies on herd mentality and crowd reactions. But it strikes me that one of the positive things today is that we’re saying the word now. It puts a name to the thing haunting us and keeping us awake at night. No more of this he-who-shall-have-no-name crap. The reason I don’t want to overspend on Christmas presents isn’t the slowdown or bad times or the economy. It’s the recession.
It’s a serious word, and it makes everyone stop and think. Do I need the extra coffee? Should I buy the extra gift? Can we eat in tonight? It works in business as well. Can I justify this expense? Are we throwing good money after bad? Are we really fixing the problem? Is this the most efficient and cost-effective way to do this?
That’s good practice – for individuals and businesses – in good times and in bad. It might be the brightest spot for a bit.
