What can we learn from the ongoing worldwide recession?
Over the last few weeks we have seen signs that the likes of Japan, France and Germany are starting to pull out of their own recessionary phase although many other countries are still some way behind. However, even though there is some way to go to rectify the problems of the last two years, and in many cases the last decade, is there a need to learn from the ongoing financial issues and ensure these do not happen again?
When you consider the pain, the financial loss and the utter confusion which the worldwide recession has caused it is paramount that we learn lessons from this specific recession and put barriers in place to ensure it doesn't happen again. While in theory this is excellent, in practice it will be much more difficult because ultimately it may be in the next 10 years, 20 years or 50 years, investors and companies will become greedy again and we could in theory end up with a similar scenario.
Even though lessons do need to be learnt, history shows us that investors and governments around the world have very short memories and will ultimately start to chase profits and income once the worldwide recession is over. The human emotions of fear and greed are never too far below the surface!
Share this..
Related stories
Is the Bank of England turning negative on the UK economy?
There is a feeling within financial circles that the Bank of England may be starting to turn a little negative on the UK economy and the prospects for 2010. At a time when many people assume the economy is over the worst, signs from Bank of England over the last 24 hours seem to indicate that confidence in 2010 is not as high as it has been over the last few weeks. So what is the problem? One o...
Read MoreRDR – Concerns over Advice Gap
There are increasing concerns over the effect the Retail Distribution Review (RDR) will have on mid-market clients seeking financial advice, as many believe they will be simply priced out of the market. There are two points to be considered when looking at mid-market clients; their value to Independent Financial Advisors (IFA’s), and their willingness to pay upfront fees for financial advice....
Read MoreUK government looking to create three new high street banks
The UK government is looking to create three new high street banks with the forced sell-off of bank branches by Lloyds bank Royal Bank of Scotland in the short to medium term. However, it is unclear exactly how these new banks will be created and what kind of strategy and service they will offer the UK population.
Ultimately the UK government would prefer to see a more local economy...
Royal Bank of Scotland ordered to sell off branches
In line with European Union state aid rules, Royal Bank of Scotland is rumoured to be on the verge of receiving a request to reduce the company's UK market share by around one sixth. The situation has evolved because of the significant state aid received from the UK government, something which was paid out before it was rubber stamped by the EU Competition Commissioner, and the market share the co...
Read MoreSnow costing UK economy £600 million a day
It is estimated that the snowy weather in the UK is costing UK businesses £600 million a day at a time when few businesses can afford to give away trade. A mixture of staff absence numbers and missed trade is beginning to add up and becoming a major concern for the UK government. It is no secret that many small to medium-sized businesses (and a few larger businesses) are literally trading on a...
Read More