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The Weather Outside is Frightful…

December 17th, 2009

While there are some nascent signs of recovery, and the markets like to climb the proverbial wall of worry, every day seems to bring more news of headwinds to the economy. Some of the headwinds are current events like debt problems in Dubai followed by financial problems within the EU. Some are longer term changes in attitude such as the well documented increase in savings by consumers which is likely to last longer than the immediate economic downturn. While this is healthy longer term, it does not help support the near term recovery. Overall, rather than solving for the debt overhang, the government seems to be adding to it.

These factors all fit within the typical scenario for credit induced downturns which tend to be much more difficult to recover from than cyclical downturns. This “new normal” environment will require management to follow careful and thoughtful strategies, and executive crisply and flawlessly. Executives will need to be on the top of their game. However, those that differentiate themselves from the pack could enjoy excellent success.

Dorothy, we are not yet out of the poppy fields. Let it snow, let it snow, let it snow!

Filed under: General

Tags: economy, management, markets