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Friday, January 2, 2009

The year 2008- A reflection

Another year has gone by and the way the year has panned, most people would be happy its over and done with.More often than not, US takes center stage for new products and innovations. So it happened this time too. Only thing they will be remembered for all the wrong reasons- the sub prime crisis, the fancy derivatives churned out by the so called "whiz kids" of management- spelt doom for the economy not confined to the States but to the whole world.Big names like Lehman brothers, Washington Mutual, Meryl Lynch folded up and others like AIG, Citi bank and the Auto giants virtually touched bankruptcy and had to be bailed out with Government doles. Their shares have plummeted so low that they have become worthless papers.

In most world markets, the secondary capital markets hit a peak by Jan 2008 and also lost between 60-70% market capitalization in 7-8 months.The US had its worst holiday sales in five years, consumer confidence at a 41 year low and unemployment at a 15 year high. Clearly in recession for the last one year but it took the government till september2008 to say the dreaded 'R' word. The whole world is reeling under this turmoil.

This is not going to be a short phase of recession but a very painful one. It might take the whole of 2009 and extend to 2010 before confidence can be restored. China and India would lead the recovery during this troubled period but ultimately US will have to kick off to bring the world trade in order.

The year also witnessed one of the worst terror strike in Mumbai on 26/11. Makes one wonder where is the value system heading to? The year 2008 is better forgotten. The year probably showed us how we should not manage things.

The only redeeming feature of the year would come from the sports and games arena. The Beijing Olympics was a runaway success and showcased to the world the Chinese supremacy. A Phelps or a Bolt created history by achieving what many thought as impossible.

India winning the inaugural world 20-20 cricket and gaining ascendancy in test cricket by beating the Aussies by year end. The IPL 20-20 cricket becoming a huge success which could turn cricket on its head like the "Packer" series.

Viswanathan Anand winning the world chess championship and sharp shooter Abhinav Bindra winning the only gold ever for India in an individual event.It was also Spain's sporting year. Nadal dethroning King Federer from the No.1 spot in tennis and also winning the Olympic gold in the singles. Spain also conquered the Euro 2008 cup and won the Davis cup finals. Yes, sports and games were the only silver lining in an otherwise disastrous year.

Hopefully, the world would have learnt from all the mistakes in 2008 and not allow it to be repeated. That if it happens, would be the only positive fall out from the year gone by.

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