lakshmirajaram
New member
Yes. the world is hit by a real recession. but it is continual process which happens once in few years gap. this type of recession is required to revamp teh economy. the hard hit segments are banking, IT, automobiles etc., however economist predict that this recession will get over in 2 years. especially by 2013 again a situtaion like 2007 can be expected.
lets cross teh fingers and look at
Regards,
Mahalakshmi
lets cross teh fingers and look at
Regards,
Mahalakshmi
Financial slump will take more time to go than expected..... Economics point of view says that demand will reduce for products and so does supply because they are corelated.
When you are at bottom, it will take more effort and time to move up due to gravity...same principle applies to finance...
suppose you have two products at price 100 & 200 and you have projection of 10% increase in price for next 6 months...After 6 months @10%, the price will go up by 10 & 20 respectively, making it to 110 & 220....
Now considering the slump, you decided to reduce price by 10%, then it will not take you back to your old price of 6 months infact it will go below that..
@10% now, price will reduce by 11 & 22 respectively, making it to 99 & 198...
So moving up is always difficult and coming down the pace is always higher..
That means it will take more time to recover the financial slump than the time it took to come.
When you are at bottom, it will take more effort and time to move up due to gravity...same principle applies to finance...
suppose you have two products at price 100 & 200 and you have projection of 10% increase in price for next 6 months...After 6 months @10%, the price will go up by 10 & 20 respectively, making it to 110 & 220....
Now considering the slump, you decided to reduce price by 10%, then it will not take you back to your old price of 6 months infact it will go below that..
@10% now, price will reduce by 11 & 22 respectively, making it to 99 & 198...
So moving up is always difficult and coming down the pace is always higher..
That means it will take more time to recover the financial slump than the time it took to come.
Kelvin Sovi
Kelvin Sovi
It is difficult to tell when things will be better. The current financial cris is complex. Added to its complexity is the very existence of virtual ecnomies which can easily go down on mere speculations!! That's what makes the situation to be some kind of flip-flop.
priyankappd
Priyanka Dhanvekar
Financial meltdown a boon for small factories in Punjab
MOHALI: The global financial slump has come as a boon for small industrial units in Punjab. As the bigger units pare down production and focus on cost-cutting, orders have begun to be re-routed to the small-scale sector in the state.
"Our business has gone up by over 60 per cent in the past three-four months. Many of our new clients are from Gujarat and Maharashtra. Our workers are working round the clock to complete orders," said Adhish Bansal, who runs a small auto bearings manufacturing unit in this industrial town about 10 km from Chandigarh.
Atul Mahajan, owner of a small-scale precision engineering equipment unit in Mohali, has a similar story. "Earlier, we only had clients in this industrial area and did not send our products to other states. It's different now."
Today, Mahajan said, demand has shot up and sometimes orders have had to be refused on account of the excessive workload and deadline pressure.
"This slowdown in the economy has certainly proved a blessing in disguise for many small-scale units operating here. Various small-scale industries have started getting good business," said K.S. Mahal, general secretary, Mohali Industries Association (MIA).
But everyone is not happy. According to a senior MIA official, the bigger units in Punjab's Jalandhar industrial area, around 150 km from here, are suffering as they cannot run production on a lower scale to execute small orders.
Baljeet Singh, who runs an auto parts manufacturing unit in Jalandhar, says: "Our international export business has fallen by 50 to 60 per cent and in the domestic market by over 30 per cent . Many clients are going to smaller firms to get products at lower prices.
"In 2007, we did good business, but the last six months of 2008 were very difficult for us. We cannot compete with small industries as we cannot sustain for long by cutting down production because of the big capital investments we made."
Davinder Singh Khokhar, who runs a hosiery unit in Ludhiana, around 100 km from here, said: "Big industries are facing a liquidity crunch, as we do not have any stable source of cash flow. Many entrepreneurs here are planning to shift to some small-scale industry as at present it seems to be the only money-spinning and viable option."
The auto components sector is one of the main industries of Jalandhar, which has 300 units that employ more than 4,500 people.
Over 1,200 small-scale and large-scale units employing more than 100,000 people operate in Mohali. Most of these manufacture engineering goods and automobile parts.
Source :- Punjab Newsline Network
:SugarwareZ-265:
MOHALI: The global financial slump has come as a boon for small industrial units in Punjab. As the bigger units pare down production and focus on cost-cutting, orders have begun to be re-routed to the small-scale sector in the state.
"Our business has gone up by over 60 per cent in the past three-four months. Many of our new clients are from Gujarat and Maharashtra. Our workers are working round the clock to complete orders," said Adhish Bansal, who runs a small auto bearings manufacturing unit in this industrial town about 10 km from Chandigarh.
Atul Mahajan, owner of a small-scale precision engineering equipment unit in Mohali, has a similar story. "Earlier, we only had clients in this industrial area and did not send our products to other states. It's different now."
Today, Mahajan said, demand has shot up and sometimes orders have had to be refused on account of the excessive workload and deadline pressure.
"This slowdown in the economy has certainly proved a blessing in disguise for many small-scale units operating here. Various small-scale industries have started getting good business," said K.S. Mahal, general secretary, Mohali Industries Association (MIA).
But everyone is not happy. According to a senior MIA official, the bigger units in Punjab's Jalandhar industrial area, around 150 km from here, are suffering as they cannot run production on a lower scale to execute small orders.
Baljeet Singh, who runs an auto parts manufacturing unit in Jalandhar, says: "Our international export business has fallen by 50 to 60 per cent and in the domestic market by over 30 per cent . Many clients are going to smaller firms to get products at lower prices.
"In 2007, we did good business, but the last six months of 2008 were very difficult for us. We cannot compete with small industries as we cannot sustain for long by cutting down production because of the big capital investments we made."
Davinder Singh Khokhar, who runs a hosiery unit in Ludhiana, around 100 km from here, said: "Big industries are facing a liquidity crunch, as we do not have any stable source of cash flow. Many entrepreneurs here are planning to shift to some small-scale industry as at present it seems to be the only money-spinning and viable option."
The auto components sector is one of the main industries of Jalandhar, which has 300 units that employ more than 4,500 people.
Over 1,200 small-scale and large-scale units employing more than 100,000 people operate in Mohali. Most of these manufacture engineering goods and automobile parts.
Source :- Punjab Newsline Network
:SugarwareZ-265:
Madhu_mohite
New member
yeah....I think real economy will improve first & then Financial sector will improve
savio13
Savio Cabral
The recession we continously think of is in the mind. If we believe that we are experiencing recession, we will always feel that there is recession.
There is a story of a boy who was doing MBA and knew about recession that had hit the world. But his father was unaware about it since he was uneducated. The father has a chain of vada pav outlets. And his businness was doing well. Seeing this the boy told his father that it is recession time and the time was to cut down on expenses. So the father listened to his educated son and closed some outlets. Slowly he let -off some employees. And thus he lost business all over. And had to ultimately close down.
Moral: Recession is in the mind, it should not affect us.