Wednesday, December 24, 2008

Reducing Costs

(Originally posted 10/17/2008)

Already with yesterday's rise in the world stock markets, some people were breathing a sigh of relief. But is the crisis really over? What does adding billions of currency (USD, Euro) to the world market really solve? The banks have cash but the people still have loans that are past due, mortgages that are close to foreclosure and jobs that are being eliminated. We are the ultimate customer of every company, even the one we work for.

What happens when we, the ultimate customer, can no longer purchase a new car, house, electronic appliance or just about anything else? Then the whole economic chain will collapse. Our jobs depend on our companies being profitable and that depends on us being able to buy products. BUT we are now "upside down" as some financial advisers would say. The downward spiral is starting to bounce a bit but it is still downward.

So what must we do to stop this? Stay tuned.

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