The GFC is a myth, or it seems so to some.
I have been asking friends about what impact has the Global Financial Crisis, GFC, had on budgeting within their companies for the next financial year. Amazingly the responses I have been getting are that their companies are continuing to build growth into their plans as if there is no GFC. To them it appears to be a myth.
Now I will admit that my sample size is no where near a global representation but there does seem to be this head in the sand attitude. Or there is at least at the top line revenue level. I suspect that there is double budgeting going on. On one hand we all can't get off this growth kick we have been on so we are forecasting revenue growth. On the other hand it is batten down the hatches on cost control. The disconnect between revenue and cost will create some interesting dynamics going forward.
Is this happening at your company?
Is anyone out there planning how to ride out the GFC and come out stronger into whatever the new world brings?
Just some idol curiosity,
Cheers,
Rob
1 comments:
The GFC arrived with a blast of icy wind just like the next ice age. It seems to have frozen out all thought of global warming and provides a much more familiar topic for the media to get its teeth into, except for the odd jargon like 'sub prime' etc.
Seems spending has been steady in retail, house prices have fallen but not that much, probably within normal tolerances. Unemployment went down last month?
GFC is here because they said so! So we must be pessimistic to match. For me this means people can take their time to pay bills, put off decisions and generally take the easy way out. It also means quite a few people will make a lot of money and a a lot of people will not make any!
GFC can't be a myth can it? So much data to back it up? Surely Sentiment is all that counts when it comes to markets, if that is the case why does the media talk it down? Simple human nature I guess, media thrives on bad stories not good ones. Rob G
Post a Comment