
By SOMDATTA SENGUPTA
Published April 10, 2008
Is the credit crunch bothering you? Has your house depreciated lower than you expected? Or is the fear of the pink slip making you sleepless?
If it is, then you have only one way to go. Be creative. Whether you are a homeowner or a small business owner, fears of a recession could only suggest that what was working before might not be working now. So it may be time to change the way things get done and improvise.
As rock guitarist Carlos Santana said during his live performance at the Merriweather Post Pavilion in Maryland on Sunday, April 6, “Things can’t be worse than they are now.” To that I add: It can only get better after it gets worse.
U.S. Department of Labor statistics show that 80,000 jobs were lost in March. It is also the biggest monthly drop in five years, as many media sources reported over the weekend. On top of that, it is the third consecutive month since the beginning of this year, that job losses happened at a steady rate.
According to an April 4 statement made by U.S. Secretary of Labor Elaine L. Chao, “Negative job growth in March shows that the challenges in the housing market and financial sector continue to impact the economy.”
While this is true, here’s what’s more interesting and relevant to the Bayshore about what Ms. Chao said: The largest job losses are in construction and manufacturing. Thankfully, those areas are not the backbone of the Bayshore economy. We have a service-based economy here. That’s good news to start with.
The secretary of labor also stated that the Bush administration “has taken strong, proactive measures to turn around the slowly weakening job market with a stimulus package that will kick in soon, new programs that have helped more than one million homeowners avoid foreclosures and actions that have brought stability to the financial markets.”
Add to that the peace of mind that comes with having some really smart people on Wall Street who can turn things around just like they did soon after 9/11.
Further, we have a brilliant scholar, and in my opinion, a man who thinks on his feet, on top of what needs to be done with the economy: the Garden State’s very own Princeton University Professor Dr. Ben Bernanke.
This Harvard University and Massachusetts Institute of Technology graduate has helped stabilize the markets through the timely intervention of the U.S. Federal Reserve. Under his leadership, the Federal Reserve decided to underwrite approximately $30 billion of Bear Stearns’ assets as JP Morgan took over the ailing bank.
He took a lot of heat from the U.S. Congress and the media last week after he stood his ground and did what was right and needed. What’s most important is that Dr. Bernanke acted on time and reversed the downward trend on Wall Street. His action restored investors’ confidence and started a chain reaction for financial recovery. It paved the way for UBS and Lehman Brothers’ to stabilize and now, the Wall Street rumor is that with these measures in place, the recession might just be a six-month affair. Even Dr. Bernanke predicts as much.
However this turns out, at the local level, as a Bayshore resident, I think the current trends require creativity, not panic.
If you are a homeowner, it is time to seek information about how banks and the government are planning to help you out. Then take advantage of those measures. Tighten your belt if you must and curb your lifestyle, but not your optimism.
For small businesses or a franchise owner: Don’t let cutting down your staff and services be the first thing done. Doing such will seriously impact a company’s productivity, stress the few employees left on payroll (by adding to their to-do list), and impact the quality of the product or service a company may offer. Once a product or service suffers, it might be more damaging than the slowdown in the economy, and more costly to fix.
As all clouds have a silver lining, the recession and high gas prices might bring more traffic down the Bayshore than expected. Long-distance and overseas travel might go down as people try to spend their vacation locally. Hard times discourage extravagance, and force people to seek out dining and entertainment options closer to home. How bad is that when a local shop is just the right place for people to go to in a neighborhood?
If you are an employee and fear that your job is on the line, then it is time to re-double your contributions at work, and not withdraw from duties. Show an interest in the organization’s concerns about a slowing economy and do something positive that would help the company tide over the situation. Find the pennies to save. By doing that a worker would perhaps have taken a positive step in turning around some company’s money woes.
If someone might have already lost his or her job, then instead of being depressed, it’s time to increase your skills, learn something new, or seek another career path that will help a person to earn more when the economy does turn around.
The idea is simple: Don’t give up.













