Recession: Outcome of lavish and over the budget expenditure, mixed with casual approach of common man and corporate houses.
Companies, in order to woo skilled employees, provided huge perks and facilities like food, transport, free accommodation, etc. In turn, the employees took things for granted and mis-utilized the liberties given to them causing wastage of money and resources. Over period of
time, it has resulted in increasing costs and mounting losses as due to high prices, companies are unable to achieve their targets. This has led to the financial crisis and now companies are feeling the crunch and the necessity to cut down on expenses and are resorting to all kinds of activities including forced attrition and lay-offs.
It can safely be said that the present financial crisis and recession across the globe is a result of Mismanagement of resources at all levels.
4 comments:
well in regards to this issue i would like to make a point on the petroleum prices going down in the international market and still our Government is paying no heed to this major issue.I dont know how much relevant is my view to your 'testing times' but I would definitely like you to jot something regarding this matter as well.I have another point to make as well irrelevant of your topic and that is some news are flashing in saying that US new President Elect is seriously commenting on the 'outsourcing'matter too.whether it is a rumour or a true story I consider it important to raise a voice against that because so many employees are involved in that particular business.That is all I have in my mind and have blurted out clean and clear.
I don't really grasp the technical aspects of the entire economic doom. However, I do get deeply disturbed when i hear of downsizing and get upset for those unlucky who are losing their jobs everyday!
Great piece, Manish...
Yes...you are right..The financial crisis has risen because of the fact that till date capitalists were very confident that an economy can perform at its best under market mechanism with minimun or little government intervention. However, now they have been proven wrong. They now desperately needs the help of the government to get out of the liquidity crisis. So, we are on the verge where economic theories may be rewritten. The problem of sub-prime crisis has not risen all of a sudden...it was a gradual process. The solution of this problem will also be gradual in nature. Its high time for all the governments of the world to come together and device some effective fiscal, monetary and foreign policies to solve the problem....before we move to another period of Great Depression....So sit back and relax...the problem is more severe than it seems..
I do entirely admit and agree to the brutal trth that manish as presented as a have been a witness to the point brought out by him.
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