The Sand Bunker

Just another Blog by anDru

Is the economic situation bottoming up

We saw many things happening during the last couple of days, both good and bad things. Now many start to wonder why the AIG executives deserve the 300 million bonus when they are partly to be blamed for the company losses. After that there are some many stories going on at the AIG crisis and we could just wait when will it going to end.

Wall streets managed to performed a rally last week with the Dow recovered from it lowest level in 8 years. I believe that some of the investors confidence are restored to some point. We should be able to see some slight recovery in the financial market in the coming week particularly in Asia especially China.

However there are some worries left in Japan. Being the world largest economy, Japan is badly hit during this recession, the worst ever in the modern history of Japan. Although big auto makers like Toyota had announced of some big cut in output and sales, we should see the industries to return back by the middle of the year.

Economic cycle is very much predictable. Some say it will come every 10 years which is quite true during the last 3 resession we had. But it all depend on human behavior. Human nowaday may not be like we were 10 or 20 years ago. Now we need to move on forward with life. The behavior pattern tells us that human will return back to be an aggressive consumer again very soon.

How long can a person delay to buy a car or replace a car. We have computers or laptop that we need to change every 2 years in order to stay with the current technology. So as the cell phones, PDAs and latest range of LCD TVs. Human being cannot escape from the desire to own better things or the upgrade themselves, especially with what we have now in our surroundings.

Not long from now we will see consumer will start their activities to spend money and thus revive the economy back again.

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