Thursday 20 November 2008

From Financial Crisis to Cyclical Recession

As Stratfor writes, the current financial crisis has been mitigated, if not solved. The problem now is that we are entering a cyclical recession. The economies worldwide now have to find their way out of it. More discipline has to be established in the economies running wild.

There is also a social component to the problem. Fixing economy will not necessarily be the top priority of the governments around the world. Wellbeing of their citizens and the political stability, more probably, will.

The recession is now triggering a range of bankruptcies and it is a matter of which companies live and which do not.

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