A day in the life of India

My experiments with Life

Recession: a mind game?

with one comment

Every one is talking about recession, so is it a reality or just a hysteria. Recession is the cause of sentiments (market sentiments) means. if you think there is a recession then there will be a recession when the whole nation thinks there is a recession they will stop spending, they lower their demand, they stop investments, and expansion and this indeed causes the recession. If people are unaware of a recession or a negative growth they don’t change their spending habits or their investment plans.

Ask yourself has your income changed, most probably the answer is not. Don’t take your losses from the stock market into account as it not a loss, unless you sell it for a loss you have not booked the losses yet, its just the value of the stock that has reduced and not your profit unless you are a day trader. 
So the question is if everyone thinks that there is no recession then will the economy start growing, the answer is certainly yes. 

Written by maya

December 16, 2008 at 5:30 pm

Posted in my views, uncommon

One Response

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  1. You are right. Infact for a majority of the Indians, if one were to ask the question has your income changed, the answer is yes it has increased. After sixth pay commission at least govt service people have more money in their pockets. India definitely should not be in recession. Yes the exports will be hit because other countries are in recession. Maybe that is a blessing in disguise because our companies can think about the local market for a change.

    L. Venkata Subramaniam

    December 27, 2008 at 8:37 pm

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