How to survive global ressession
Got this from a friend. I think the reasoning is sound.
Wishing u a God protected, recession free, 2009 walai.
The emerging reality in the Nigerian economy is that the effect of the global meltdown is only a matter of when and not if it'll affect the country. Surely we live in a global economy and no country is totally isolated from another. Predictions have it that the effects will start trickling in as early as 1st or 2nd quarter of next year. To start with, oil revenue has been on the sharp decline and that is not a happy story for an oil dependent economy like Nigeria; no doubt, the effects will trickle down to all. There is also no end in sight yet for the drop in prices, the more OPEC cuts output, the worse the prices get. this is a twin headache: falling prices + falling output = lower revenue
Overseas banks are recalling the various facilities they gave their Nigeria counterparts, various maturing confirmation lines offered by these banks are not being renewed forcing a squeeze in liquidity, thus affecting banks. Banks have lost heavily (and still losing) in the capital market. The amazing thing is that what banks have lost in the capital market is just a fraction of what they are losing in the petroleum business and people seem to be silent on that. No doubt, Nigerian banks may witness some of its own problems starting next year. And u know when Nigerian banks cough, every businesses catches cold. It may be goodbye to all those big bonuses & dividends.
With low capacity utilisation getting worse, industries shutting down, depleting foreign reserves, etc, we may not expect fat pay rises for a start and eventually companies may start shedding staff to survive. Except we want to deceive ourselves, all these are inevitable if the trend continues. The likely effects of job losses are better imagined than experienced.
Having said all that, the issue is not to worry about the intricacies of the whole issue but to develop strategies to guide our families from the likely impact. The key thing during periods of uncertainty like this is to build up liquidity and curtail expenses as much as possible. Profitability strategies may be substituted with survival strategies. This may not be the best of times to over-invest in properties and other long term projects. Even if you’re able to weather the storm, our children will not want to know why their lunch box does not have the usual Caprisone or why Milo wasn’t served at Breakfast. Madam doesn’t want to know why she can’t watch African Magic on DSTV; the earlier we prepare for the approaching recession the better.
While praying that it ends soon, let’s build up liquidity as much as possible. You have absolutely nothing to lose by saving your money. With good planning we will survival this TRYING TIME
Wishing u a God protected, recession free, 2009 walai.
The emerging reality in the Nigerian economy is that the effect of the global meltdown is only a matter of when and not if it'll affect the country. Surely we live in a global economy and no country is totally isolated from another. Predictions have it that the effects will start trickling in as early as 1st or 2nd quarter of next year. To start with, oil revenue has been on the sharp decline and that is not a happy story for an oil dependent economy like Nigeria; no doubt, the effects will trickle down to all. There is also no end in sight yet for the drop in prices, the more OPEC cuts output, the worse the prices get. this is a twin headache: falling prices + falling output = lower revenue
Overseas banks are recalling the various facilities they gave their Nigeria counterparts, various maturing confirmation lines offered by these banks are not being renewed forcing a squeeze in liquidity, thus affecting banks. Banks have lost heavily (and still losing) in the capital market. The amazing thing is that what banks have lost in the capital market is just a fraction of what they are losing in the petroleum business and people seem to be silent on that. No doubt, Nigerian banks may witness some of its own problems starting next year. And u know when Nigerian banks cough, every businesses catches cold. It may be goodbye to all those big bonuses & dividends.
With low capacity utilisation getting worse, industries shutting down, depleting foreign reserves, etc, we may not expect fat pay rises for a start and eventually companies may start shedding staff to survive. Except we want to deceive ourselves, all these are inevitable if the trend continues. The likely effects of job losses are better imagined than experienced.
Having said all that, the issue is not to worry about the intricacies of the whole issue but to develop strategies to guide our families from the likely impact. The key thing during periods of uncertainty like this is to build up liquidity and curtail expenses as much as possible. Profitability strategies may be substituted with survival strategies. This may not be the best of times to over-invest in properties and other long term projects. Even if you’re able to weather the storm, our children will not want to know why their lunch box does not have the usual Caprisone or why Milo wasn’t served at Breakfast. Madam doesn’t want to know why she can’t watch African Magic on DSTV; the earlier we prepare for the approaching recession the better.
While praying that it ends soon, let’s build up liquidity as much as possible. You have absolutely nothing to lose by saving your money. With good planning we will survival this TRYING TIME
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