What has happened over the past few decades has been with companies:
1) A shift to JIT stock control and resource management
2) Shift towards paying dividends over building up reserves for rainy days
3) Valuing of companies with more weight upon public perception and perceived prospects over tangible assets on the books.
With many other factors that all, whilst small, add up to a market with companies driven by a way of working that is more volatile towards any unknown changes as less prepared by design to handle any rainy days periods.
This is also not just a company thing, but a personal thing with the shift in mentality to buy now pay later over save now, buy later. Mostly driven by low interest rates, which have been kept low as a way to manage currency value as a way to manage inflation. That along with any crash saw people with high interest rates as much larger and quicker to drive an economic crash with debts. Though mostly, to drive consumer spending so GDP looks good and the perception helps that countries credit rating. Making them able to borrow more for even less. Consumers with no incentive to save, buy more, borrow more, everything looks nice.
But of course there is more to it than that, but the whole drive towards lower interest rates has over the decades bestowed a culture more included to think short-term and deal with the long-term later and enjoy the sun. This has permeated in many forms and creates what I would call a false economy.
So after the moore's law of interest rates started to hit a limit as they could not shrink any lower, they invented QE, which worked and helped avoid reality of things catching up with the markets for many a time. But then even that can only go so far, so the new tool - negative interest rates.
This of course, all tricks to help balance the books and keep the whole financial system rolling ahead without it taking a reality audit and adjusting down instead of being over valued due to perception of constant growth.
But with a big rainy day that is global, things in any market would take a hit, how much of that depends as many companies will die, but how many of them will be due to the way they operate and not the `market snap`(sorry Marvel, I'm using it) we are experiencing.
If anything, whilst many jobs will be lost, more attention to local sourcing will be given and that will create not only jobs, but more stable jobs. At least to until the fashion of outsourcing comes back and we end up with Detroit mark2.
Also be new opportunities/jobs - certainly be a boom for many internet companies. Also see alas another nail in many a high street and with that, things will change, how much of that does transpire is unsure for certain. But certainly see more things local produced instead of imported, with that production has been slowly clustering globally and in some area's has become centered. So insourcing may well become a word used more than outsourcing when it comes to production and materials resources.
About the only thing I do know for sure, even after this - people will use more soap than before.
1) A shift to JIT stock control and resource management 2) Shift towards paying dividends over building up reserves for rainy days 3) Valuing of companies with more weight upon public perception and perceived prospects over tangible assets on the books.
With many other factors that all, whilst small, add up to a market with companies driven by a way of working that is more volatile towards any unknown changes as less prepared by design to handle any rainy days periods.
This is also not just a company thing, but a personal thing with the shift in mentality to buy now pay later over save now, buy later. Mostly driven by low interest rates, which have been kept low as a way to manage currency value as a way to manage inflation. That along with any crash saw people with high interest rates as much larger and quicker to drive an economic crash with debts. Though mostly, to drive consumer spending so GDP looks good and the perception helps that countries credit rating. Making them able to borrow more for even less. Consumers with no incentive to save, buy more, borrow more, everything looks nice.
But of course there is more to it than that, but the whole drive towards lower interest rates has over the decades bestowed a culture more included to think short-term and deal with the long-term later and enjoy the sun. This has permeated in many forms and creates what I would call a false economy.
So after the moore's law of interest rates started to hit a limit as they could not shrink any lower, they invented QE, which worked and helped avoid reality of things catching up with the markets for many a time. But then even that can only go so far, so the new tool - negative interest rates.
This of course, all tricks to help balance the books and keep the whole financial system rolling ahead without it taking a reality audit and adjusting down instead of being over valued due to perception of constant growth.
But with a big rainy day that is global, things in any market would take a hit, how much of that depends as many companies will die, but how many of them will be due to the way they operate and not the `market snap`(sorry Marvel, I'm using it) we are experiencing.
If anything, whilst many jobs will be lost, more attention to local sourcing will be given and that will create not only jobs, but more stable jobs. At least to until the fashion of outsourcing comes back and we end up with Detroit mark2.
Also be new opportunities/jobs - certainly be a boom for many internet companies. Also see alas another nail in many a high street and with that, things will change, how much of that does transpire is unsure for certain. But certainly see more things local produced instead of imported, with that production has been slowly clustering globally and in some area's has become centered. So insourcing may well become a word used more than outsourcing when it comes to production and materials resources.
About the only thing I do know for sure, even after this - people will use more soap than before.