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Thursday, March 5, 2009

Immunity from the Global Financial crisis

What would you think when somebody would tell you, you will be spared from an impending crisis that is suppose to affect the entire world?

In a recent work related event a senior officer told us that Filipinos are not affected much of the Global Financial crisis. He cited the reason that majority of the industry that propels the economy is domestic based. While export is suffering, the domestic market is alive and kicking. Because of this, the government is pouring out money in the local scene to catalyze the local spending thereby force the local industries to produce, hire people, and keep business going.

While his arguments are highly acceptable, most of us would doubt the validity of the theories based on what the real situation have shown. The reason might be that people became conscious and begun cutting their expenditures.

But we can't judge whether the prognosis are right at this early so we need to be vigilant and be aware of our rule. The advise was "keep spending" and not hoard the financial resources so that the industrial gears keep moving. Think that nothing is unusual and buy or spend according to the usual ways. By doing so, the industries will not reduce production volume; no cuts in material purchases; no reduction in labor; and so on and so forth.

Why not try it, it might be true

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