We’ve had the bottom of the market called. Or is it a relief rally?
We have calls of ‘never again’.
But I’ve been searching for the next big thing for the past three months. And I’m convinced it’s The Same Old Thing.
I don’t want more government intervention. I do want free wheeling innovation and choice. I have been seduced by get rich schemes like buying a house to improve or starting a new business.
Capitalism is largely not about greed it is about progress and spreading a communal betterment. We don’t want that to stop.
The impending recession, downturn and depression ought not to be about gloom. They should be about creativity and soul. Austerity measures are long remembered after WW2. Necessity is the mother of invention… The journey is the reward.
Does anyone else have a delirious feeling that, despite impending pain, the next months will be ones to purge the excess from across society, to rebalance from hocus work-life binge swings and to get back to some real pleasures.
Anyone for a game of cards to sharpen our speculative brain cells?
When we see the gambling stop, what will we have left? More speculative activity. And I’m hopeful this will mean a swift bounce back after some spectacular busts.
As Archimedes proves… If you put more bodies in the bath tub, the water goes out. But it doesn’t disappear. It has to to somewhere. Those 60,000 jobs that are claimed will go in The City? People will still need to undertake economic activity. There will be future strong businesses formed from this crucible. The stall in activity will kickstart quickly because the Big Forces are still in play. China and emerging Market development bringing 60m people out of poverty each year. The London Olympics creating a big demand for building workers. Salaries pegged that will not be sacrifices (can the minimum wage survive?)
I’m not saying that there won’t be significant re-rating of all things that have peaked (can you imagine paying £50 per square foot on office space? This equates to costing £7500 to house each worker)
Can you see lawyers continuing to charge £500 per hour?
The displacement will be the most telling theme in this recession. We will still need the same things but many people will trade into value (£99 blow dry anyone when you can get one for a fiver? Or, £700 handbag budget?)
See you at The Regency, my friends. Value will out