I am reading a great book written by authors David Rhodes and Daniel Stelter of the Boston Consulting Group titled Accelerating Out of the Great Recession. One of the key take-aways so far is that this current economic period, both the recession and the subsequent recovery, is a real game changer.
The authors are careful to point out what a huge role that debt and the accumulation of it by individuals and companies alike played in the run up to the Great Recession. The growth in the years leading up to the big fall was built on credit and debt. The beginning of the downfall started with the crack in the sub-prime loans.
All of this undermined the stability of our banking system and led to near disaster. The authors suggest that the govenment bailouts of the banks actually did help us to dodge a catatrophy and that makes sense to me. Whether we like it or not the bail outs and rescues did help us to avoid another Great Depression.
With all of this said, each and every individual of this country should take a very serious look at their financial strategy in light of this game-changing event called the Great Recession. Will you find success in the stock market? Will investment in real estate on the individual level ever return to the safe bet that it once was? Will our employment opportunities and benefits offered by employers ever be the same as they were in the period before the Great Recession?
It is incumbent on every individual to take a close look at the way they save and spend coming out of this recession. I suggest that anyone interested in learning more about this book click on the title of this post for more information on where to find it.
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