Its now official - US has entered recession in Dec 2007 and all the statistics confirmed that !
Chinese manufacturing data injected severe fear yesterday and it is almost certain that Europe, US, Japan, Singapore entered recession too.
What does this mean to India?
India's GDP would considerably slow down - already exports are down by 12%, fiscal deficit balooning, automobile sales considerably down; So, just ignore the pep statements of P Chidambaram and Montek Singh; India would be entering troubled waters starting this October;
If our folks employed in USA, Europe comes back retrenched, it would add considerable pressure to local situation. Otherwise, we might manage to just float in 2009.
As a investor, do invest in fixed deposits, bonds - ignore stock market, commodity market for now. Buy Gold only if it dips around 625 - 650 USD. Relax and cut down your expenses, avoid impulse shopping and save your money to buy things in discount.
In a recession, it isn't always bad. Most people don't realize how much money there is out there. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, lenders are bending over backwards to bail you out too. Believe it or not, there is people getting tons of cheap money nowdays to start businesses, buy homes, pay off debt, and more. Recession Bailouts for YOU
ReplyDeleteI agree with what Mberenis said. I also feel that recession does put one on back to ground earth. Cutting down expenses, saving money and retaining your job makes you aware and appreciate what you really have with you.
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