Discussion

When I studied Economics in university, I learnt about the developping cycles. I guess that such a cycle is coming to end while a new one is starting up. I would better call that renewal, not crisis or coming back.

The economy will come back - the real question is what will it come back as. As Robert points out, it won't come back to the way it was before because the underlying foundations are no longer there or dying and Obama's in the house. It's a lot like Obama's campaign slogan for "Change We Can Believe In." Well, you'd better believe most Americans are not going to like the change although we will eventually adapt and most will go with the flow rather than fight for our freedoms.

Kia Ora Robert,

just going over latest posts. through out I note amongst your US correspondents a strong anti Socialism bent. A society is judged by how it helps those least able to help themselves. that does not mean you count out what we know as capitalism. As I have said in other posts I see the future a mix of old & new with a mix of capitalism providing social benefits.

that is the world movement & hint from many of the corporates they have seen that too. so people should use the lessons you provide to make the world a better place by making a difference.

work within the system. Socialism can co exist with capitalist ideals & both prosper.

My plan is to be able to use capital to under pin services in way you talk about for individuals then with the freedom that provides move onto next concept. each time providing a benefit to society in a manner that pays for itself.

Not sure if that makes sense, but it is now possible by using what you have taught & depression that is coming.

Economy is innocent. The people in the economy, control or being controlled, are not.

If you believe in universal truth, there are ups and downs in life. In other words, we are living in the world of "Yin and Yang". Current recession is simply a matter of balancing when it's not balance.

People's emotion cause imbalance. I hope you and I will learn from this event and always remember it. It will be your an inner weapon to balance as time comes. I felt emotion when March'09 DJIA low and I will keep reminding myself of the feelings. When I write this article, I began to reliaze that it's time to take control my emotion and move on. What's life if there is no "Yin and Yang" in economy?

BK

I live in an area hard hit by the fall out in a small town called Fairmount, IN (home town of Garfield and James Dean-FYI) and we are close to Marion and Muncie, IN, a couple of towns that at one time seemed to thrive financially because of the manufacturing plants for automotive industries. At least in Marion there are signs of a resurrecting economy with several areas growing with new businesses, all of which seemed to have popped up in the past 2 months, it's pretty amazing and very encouraging.

There are many homes for still for sale, many foreclosures, and from my perspective many investment opportunities for rentals to profit from. I've just started reading the Rich Dad series and read Retire Young, Retire Rich in about 4 days. I am researching the real estate investment procedures and plan on making several purchases of rental properties by the end of the year. I would jump on them now, but I am getting married in 22 days and have been influenced ever so gracefully to not make any drastic changes so soon before my wedding.

Anyway, I see signs of a very profitable time. Businesses are and have popping up here in one of the most recessed areas in the country. -Robert from Indiana

In the first place, where has it gone? Honestly, the manipulative nature of both the political and the elite class need to be investigated in a properly manner. Is American gov. so wasteful of the resources at her disposal?

To answer this question,there is very need to X-ray the administration of Bush for the eight-year period in terms of funds voted to the wars in the trouble-spots of the world,tax policies,social and medicare. Just imagine a man that has been pouring water into basket for good eight years. It really beats my widest imagination. It is not about the economy itself,but,the wastefulness in the American economy.

To me,individual economy should be developed at the expense of the gov. own economic planning. More than 80% of the people in gov. do not know about the emergent of the new invisible world, where fast knowledge is the order of the day. They still believe in doing things with their old educational system coiled with gov. inefficiency. In this economy meltdown, this is the time to plan in terms familiarizing oneself with the latest knowledge that will enhance one's financial independence( getting out of the Rat Race).

I think a lot of systems have to change. The entrenchment of thinking must be unearthed.

Old school styles and means just don't hack it anymore.

I'm hearing so much testimony of industry giants (in various sectors) being forced to concede to lesser, newer upstarts who know the times, who recognize that things are getting done differently, and who can circumvent the establishment for direct to market access.

The major news about the ivory tower literary agency in LA, being a case in point: it could not match up to the newer, fresher agency, had had to give ground once numbers proved that old relationships and alliances aren't necessarily a help anymore.

We have a youtube generation amongst us. (See the documentary RiP: A Remix Manifesto for more insight into this generation and how IT bends the rules to get what it wants).

Cheers.

No. Still falling if not moving sideways.

Here is a training video (fairly brief) that demonstrates the NEW model in the music business:

http://vimeo.com/4244922

In this we can see that the old, staunch ways of doing business in the music industry are a thing of the past. And its like the record labels don't see how they are losing fans and NOT giving consumers a reason to buy. Technology and accessibility have changed the market, and it seems only the savvy business-musicians (independent artists) are getting this revelation and embracing the new distribution model, as opposed to trying to protect the old model, and choke out the consumers (fans).

Now this is JUST the music business, but if you consider it being representational of business in general, or as one gate in the symbolic "house of commons," then it demonstrates -- in a time of flux -- that until the old-money establishment changes its agenda, money will still be lost, and the economy will suffer. However, as the adroit upstarts adjust and restore balance, in a changing of the guard fashion, then the economy will have a chance to return.

Oh yeah. One other thing. The video I posted (see below) shows the new business model:

CwF + GrB = $$$

That is:

(A) Connect with fans + (B) Give them a reason to buy = (C) Reap revenue (and profit)

The video argues that this is one of the more pragmatic business models, and is the wave of the future. That artists, musicians (manufacturers) must now do A (with the market) and B (with consumers) or else they will fail to get C (reap a reward). This should be a wake-up call, an eye-opener.

Assuming that this model DOES work and is applicable to more than just the Music Industry...

Look at it from another, larger scale perspective.

I.E. The international market.

If countries fail to connect with "fans," then they will fail to do business.

I think one of the biggest problems, internationally speaking, is that America has spent decades destroying international "fans" and shredding apart its reason(s) to do business. This isn't just a matter of popularity sliding; it's a matter of millions of people despising -- dare I say, hating -- the US.

It seems that the USA is not very popular (not that it ever really was, except in its own eyes) and that end is stalking them to bite them back. The transfer of wealth in the world reflects an international revolt, and until the USA starts to humble itself and give other nations a "reason to buy," there is [unfortunately] going to be fewer and fewer "sales."

The sobering thought is, that as the wealth IS increasingly transfered, there will continue to be this vortex-effect, and it will have a concussive effect on other nations that are so delicately connected to the US economy. Until the dust settles, as they say, many other nations (like Canada) will be served a similar plate of humble pie.