Economic Fear

There is fear and anxiety in the air and there seems to be no end to the downward spiral of the falling economy. This is what we have been made to believe; at least that is what the experts say.

 The role of the banks was to lend money to any borrower who has the potential to pay back. The lenders are not longer giving out loans for fear that the borrowers will not be able to payback. On the other hand the borrowers are no longer borrowing for fear that they will get too much into debt and be subjected to the demands of the borrowers. The consumers too have decided that they would rather hold on to what they have in order to control their cash flow, by spending as little as possible.

 When the stock markets react to the information that a certain company will be laying off workers, the market is fearful that there will be another group of persons, who will have to be taken care of by the unemployment fund. But in reality the markets reacted because someone watching the markets had a calculated hunch (fear) that the layoff will have some economic effects. Which of course are bound to happen.

 What then happens to countries were the stock market are not so sensitive to information, but still hold onto the basic principles of demand and supply? Under whose mercy are these economies, who takes care of the unemployed where they are not able to collect any unemployment benefit?

 This is Africa for me where we provide all the resources to the rest of the world and yet, we feel the effect of the fear of the big economies.

 So what we have are fearful borrowers and lenders controlling the entire economy and pushing it down to its knees. True or false,.this is not a trick question.

 What happens when you are on your knees, when things seem to be going so bad that hope seems to have died? The economists resorted to telling the people to have faith in the economy.

 Of course, having faith is key, but to that I also add the element of prayer. When the economy is on its knees it a sign that it is about time we also get on our knees and pray, but when? It's now or never.