There are signs worldwide that the stimulus packages which were enacted by governments across the world earlier this year are finally making their way into the general global economies and having a positive impact. It would appear that housing starts have bottomed, and some economies are reporting upswings. I guess with the cost of capital so low, pumping money into the economies is finally taking its positive toll.
What I hope is that once the economies start, the governments will be able to rollback some of the planned deficits because all we are really doing is putting on our kids backs the ills we helped to cause. The correction to the internet industry of the early 2000’s was followed by a correct of the banking industry in the last year or so and yet the difference is that while one was internal to a new industry created by technology changes, the latter was a more macro based correction in an old industry which suffered because of technology changes gone rampant and greed.
I hope we’ve all learned our lessons about over-borrowing, yet I fear that memories are short, that credit card balances will go back up and that banks, if ever left to their own devices again, are programmed to repeat the mistakes of the past.
Sass
5 Comments
Hello Mr. Peress, do you think new energy industry will boom just like internet industry boomed ten years ago with new banking correct? Recently, people always talk about this topic that which industy is the backbone of next ten years’ economy.
Besides, how do you think about the solar pv market worldwide. Would you like to expand your business in China in recent years.
Best wishes to you!
Andy Chen from SNEIA
We are always looking for expansion partners. The new growth industry for this century is environmental, including water. The clean energy industry will take over by 2050 in my opinion, we’ll see geo-political significant shifts, and water will become the scarce resource to fight over (if nobody has figured out how to economically desalinate the oceans).
Sass
the Economic Recession has been pretty hard on us. some of my friends lost their job because of the massive job cuts. i just hope that our economy becomes better in the following years.
sorry, i do not understand your comment.
sass
Hopefully the clean energy will take over. I hope you are right Sass
James