Friday, October 10, 2008

The Bear market already on his way

What is more depressing than the realm of possibility that there will be no more innovation after ps3, Nintendo wii and xbox?
Or the nightmare of there will be no more flashy concerts in town?

This seems far-fetched but amid the current stormy weather of global economic such extreme cases might possibly happen.
The deflation, as the economist coined it is the opposite of inflation. Sounds like a good thing isn't it but bear in mind that deflation has its downside just like inflation as well. Deflation cause reduction in money supply and with little amount of money chasing a lot of products will lower the consumer prices thus reduce demand. This in long term will cause productivity to decline and factories have to lay off workers to avoid loss. At worst case factories may have to shut down. This will be the end of the invention of new products and services, if the situation gets worse but lets remain hopeful.

The intricate knowledge within the banking sector may become the things for city slickers only but the general public love to gossip about what has come from beneath the surface especially during times like these. Aside from a lively coffee house debate others already affected may seek for comfort and direction. It is likely that more people will turn up to God in times of harsh condition. The future as predicted from yesterday global stock price plummet seems bleak but this is a painful lesson again to human that the immortal world offers no system invulnerable from defects and mistakes.