I’m sure I’m not the only one, but isn’t it just getting a little tiring all this talk of this ‘Global Credit Crunch‘. This is an example of greed, miscommunication and failed management. I for one will not be shedding any tears for Bearn Sterns after their gross mismanagement of a corporate IPO for the company I worked for several years ago. However, this did and will continue to have global repercussions for quite some time.
I wrote a paper on Economic and Innovation cycles back in ‘97 and it led me to create a model which predicted a global recession from 2007-2009. I brought this to the attention to the Macroeconomics professor (Shlomo Maital) from my MBA program, and he taught the class a lesson on teleology. Whilst the class sat back and absorbed all this ‘frightening’ information it reminded me of other lessons from my previous Masters degree. My paper had not accounted for the dot-com bust, if fact I doubt many had, since it was a scenario that was pretty much over within several years and did not affect the whole economy, unlike the potential of this one.
What is tiring is the lack of cooperation that we are seeing. Everyone knows that this inevitably affects every market in the world, yet each country is acting independently of the others. Experts will tell you that if they knew how deeply everyone was involved and affected they could minimize the impact, yet this will not happen, due to a trust issue. The moral side of business went on vacation a long time ago and is showing no signs of coming out of hiding.
What we need if we are going to survive is change, but unfortunately not everyone has the b@!!$ to handle this change. So the rest of us will have to get used to these reports. BTW. is anyone getting royalty for the use of the term ‘Credit Crunch‘?