Blogging it My Way

If any of you are complaining and cursing about the current economy slump, then you need to understand that ECONOMIC CRISIS NEVER HAPPEN OVERnight. In fact, they are the result of years and even decades of global economic change, policy errors as well as investor misjudgment and miscalculation.

But there always will have those moments such as those in the past, the Wall Street crash of 1929, the fall of Thai baht in 1997 and recently when Lehman Brothers filed for bankruptcy and bankers around the world ask that one question that should also be a question to each and every single one of us.

"If a bank as well known as Lehman can fail, who is safe?" and that's it: we're all heading into recession.

And even the awakened dragon, China suffered and shuddered with fears of mass unrest as millions of workers were tossed from jobs at shuttered export factories.
Predictions about the worst ever recession has been up but one year after the Lehman bankruptcy, as policymakers and pundits gather to take stock, more of the economists are busily upping forecast for U.S growth.

And of course, China after a brief pause has returned to its caffeinated growth path, lifting together most of the Asians with it. Many are now saying that the "worst case scenario of a complete economic and financial meltdown has clearly been avoided".

The more daring ones are saying that "We're out of recession globally"

However, even if recovery is on the track, we must acknowledge that what happened change the situation existed before. Just as the world after the Great Recession won't be the world that existed before, this downturn has a fundamental impact on the globe's economic future.

In fact, the role of the United States have probably been altered. For so long, the Americans have played the primary driver of global growth but with the lesson learned, countries like Taiwan which suffered the most as she is the export-oriented economy, the government is now promoting new domestically focused industries like tourism.

Taiwan president, Ma Ying-jeou told TIME, "We were hard-hit by the shrinkage of the export market in the US. So one lesson we learned is we should diversify our export markets."

Well, if that's anything for sure is that we may have avoided the worst recession ever but we're still far from where we were before the crisis. The U.S has lost 6.7 million payroll jobs since December 2007...it'll take a long, long time to make up all the economy activity that was lost during the recession.