Friday, November 28, 2008

Recession Blues?

Current market condition is definitely troubled and people are pondering over "recession" and its consequences.

People started speculating that the US economy would enter in to a recession in the early 2008. They were mostly right as it is mostly a reality now. The word recession looks like a buzz word now and it is also being searched frequently on Google and the trend is increasing.

Check for yourself on Google Trends report on the word "recession" :-)

Average worldwide traffic of the word "Recession" on Google has too many peaks in 2008 showing that the search frequency of the word "recession" is growing.

More interestingly the majority of the traffic seems to be from Singapore and India!

The panic started when people learned about the bankruptcy filing of Lehman Brothers and Merril Lynch getting taken over by BoA. Story continued with other Ameircan giants and made the things worse. People frantically started speculating on who could be next, recession, possible job losses etc.

Here in India, things really started to heat when rumors started spreading over ICICI Bank's bankruptcy filing (even though we don't have anything called 'filing for bankruptcy'),and people lined up at the ATMs, cash soon dried up at some ATMs with this mass panic. But, I knew ICICI bank would not fall so soon as Indian Banks have little exposure to sub-prime lending. But, by and large, situation was tense and slowly things stabilized after our finance ministers assurance that all banks here are doing god with enough cash reserve.

Recent Citibank crisis again fueled a rumor here that the Citibank India operation would get a hit and the depositors would lose money. I was a little worried this time as I mostly bank with them. Citibank Indian (outgoing) CEO Sanjay Nayar, even sent a public email to customers stating that the bank was doing really well with no cash issues.

Anyways, I'm finger crossed on how this recession would shape over the next few quarters.

Hmm...World is flat, Isn't it? Anything that happens at the other end of the world, just comes here in a day!

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1 comment:

sats said...

Very valuable information. Never came across this site before. The cameras may not be that good but this is definitely a good move in the right direction!