The world's economy has changed. We have now entered a new era of lower debt levels, lower consumption and higher household savings as many of our recent economic activities were not sustainable. To reverse from high leveraging by deleveraging is not an easy solution to many economies and many people.
We may have a better reality of what look ahead of us by the below video:
Mortgage Meltdown Video -Dec 14, 2008
Those who used high leverage in their investment and consumption will have much harder time to deleverage; whereas people who used low or zero leverage in investment and consumption will come out with better ease from this economic recession.
Many government and central banks are now running huge deficits and try to print money to stop the decline of our economic activities but should come with the goals of not bringing us back to the old credit and housing bubbles.
Money is backed up by confidence as a means of exchange in products or service. The prices are determined by the supply and demand which can be manipulated by either making the scarcity of supplies or boosting the demands or both. If without proper regulation, policies and self-discipline of those involved, the prices can be too much inflated to a point as in our recent credit and housing bubbles to cause meltdown in many of our industries.
To survive well through this economy, it is time to go back to the basic of the economic activity. Anything that provide innovation and value to truly reflect the needs and wants of people without highly inflating the prices can be sustainable. It is time to invest in yourself without allowing any fear to reduce your confidence in yourself; so you can find and create something that proves valuable and innovative to our community so our economy can do better. Companies which have better balance sheet, cash position and better management should continue to invest in its innovation and product will easily come out from the other side.
People who produce with value and know the basic of money and finance will survive in any economic condition. And these are the people we can count on to help others in our community to do better in our economy. We should have many able people in Hong Kong that can survive well together to build a better community and economy of our own, right?
Money is backed up by confidence as a means of exchange in products or service. The prices are determined by the supply and demand which can be manipulated by either making the scarcity of supplies or boosting the demands or both. If without proper regulation, policies and self-discipline of those involved, the prices can be too much inflated to a point as in our recent credit and housing bubbles to cause meltdown in many of our industries.
To survive well through this economy, it is time to go back to the basic of the economic activity. Anything that provide innovation and value to truly reflect the needs and wants of people without highly inflating the prices can be sustainable. It is time to invest in yourself without allowing any fear to reduce your confidence in yourself; so you can find and create something that proves valuable and innovative to our community so our economy can do better. Companies which have better balance sheet, cash position and better management should continue to invest in its innovation and product will easily come out from the other side.
People who produce with value and know the basic of money and finance will survive in any economic condition. And these are the people we can count on to help others in our community to do better in our economy. We should have many able people in Hong Kong that can survive well together to build a better community and economy of our own, right?
