What is recession?
This Story is about a man who once upon a time was selling "Wada-Pav" by
the roadside.
He was illiterate, so he never read newspapers.
He was hard of hearing, so he never listened to the radio.
His eyes were weak, so he never watched television.
But enthusiastically, he sold lots of "Wada-pavs".
He was smart enough to offer some attractive schemes to increase his
sales.
His sales and profit went up..
He ordered more a more raw material and buns and use to sale more.
He recruited few more supporting staff to serve more customers.
He started offering home deliveries. Eventually he got himself a bigger
and better stove.
As his business was growing, the son, who had recently graduated from
College, joined his father.
Then something strange happened.
The son asked, "Dad, aren't you aware of the great recession that is
coming our way?"
The father replied, "No, but tell me about it." The son said, "The
international situation is terrible.
The domestic situation is even worse. We should be prepared for the
coming bad times."
The man thought that since his son had been to college, read the papers,
listened to the radio and watched TV.
He ought to know and his advice should not be taken lightly.
So the next day onwards, the father cut down his raw material order and
buns, took down the colourful signboard,
removed all the special schemes he was offering to the customers and was
no longer as enthusiastic.
He reduced his staff strength by giving layoffs.
Very soon, fewer and fewer people bothered to stop at his hotdog stand.
And his sales started coming down rapidly, same is the profit.
The father said to his son, "Son, you were right".
"We are in the middle of a recession and crisis. I am glad you warned me
ahead of time."
Moral of The Story: It's all in your MIND! And we actually FUEL this
recession much more than we think we do!!!!!!!!!! !!
What can we take away from this story??
1. How many times we confuse intelligence with good judgment?
2. Choose your advisors carefully but use your own judgment
3. A person or an organization will survive forever, if they have the 5
Cs
* Character
* Commitment
* Conviction
* Courtesy
* Courage
The tragedy today is that there are many walking encyclopedias that are
living failures.
The More practical and appropriate views on this economic recession is:
"This is the time to reunite together for any small or a big
organization,
this is the time to motivate and retain people which are the biggest
asset,
this is the time to show more commitments to the customers,
this is the time show values of our company to the world,
and this is the time to stand by our Nation".
Please do not take this Lightly..
"People are as Happy as they decide to be"
Labels: finance
What on earth is this recession? An awesome explanation that answers all questions.
Linda is the proprietor of a bar in Cork. In order to increase sales, she decides to allow her loyal customers - most of whom are unemployed alcoholics - to drink now but pay later.
She keeps track of the drinks consumed on a ledger (thereby granting the customers loans). Word gets around and as a result increasing numbers of customers flood into Linda's bar. Taking advantage of her customers' freedom from immediate payment constraints, Linda increases her prices for wine and beer, the most-consumed beverages. Her sales volume increases massively.
A young and dynamic customer service consultant at the local bank recognizes these customer debts as valuable future assets and increases Linda's borrowing limit. He sees no reason for undue concern since he has the debts of the alcoholics as collateral. At the bank's corporate headquarters, expert bankers transform these customer assets into DRINKBONDS, ALKBONDS and PUKEBONDS. These securities are then traded on markets worldwide.
No one really understands what these abbreviations mean and how the securities are guaranteed. Nevertheless, as their prices continuously climb, the securities become top-selling items. One day, although the prices are still climbing, a risk manager (subsequently of course fired due to his negativity) of the bank decides that slowly the time has come to demand payment of the debts incurred by the drinkers at Linda's bar.
However they cannot pay back the debts. Linda can not fulfil her loan obligations and claims bankruptcy. DRINKBOND and ALKBOND drop in price by 95 %. PUKEBOND performs better, stabilizing in price after dropping by 80 %. The suppliers of Linda's bar, having granted her generous payment due dates and having invested in the securities are faced with a new situation. Her wine supplier claims bankruptcy, her beer supplier is taken over by a competitor. The bank is saved by the Government following dramatic round-the-clock consultations by leaders from the governing political parties (and vested interests). The funds required for this purpose are obtained by a tax levied on the non-drinkers.
Finally an explanation one can understand...
Labels: recession
