For the past couple of weeks the word 'recession' is the most widely used word amongst the desis out here which includes poor souls like me!!I have been reading a lot on recession and related matters as I thought it would be better I face the consequences in the true spirit.Personaly I got the feel of it after our career fairs where the recruiters themselves told the international students about their difficulty in sponsoring our Visa with the recession coming up.Its a huge blow to people like me as I'll be graduating in the peak of recession.
The chances of the US avoiding a recession appear to be growing dimmer by the day, and any contraction in the economy will likely last longer and be more severe than other downturns in the past 20 years.
As I am specializing in construction management I tried to narrow down my readings to the construction and related field.It is the biggest housing slump in the last four or five decades: every housing indicator is in free fall, including now housing prices.Recent reports have shown the housing market slump and rising defaults in the mortgage market are now taking their toll on job growth and on the manufacturing and services sector.
This december when I was in Las Vegas my sister who works with a real estate company was telling me that one of the worst effected areas was Las Vegas.Gaming revenues suffered their steepest-ever drop — a scare that led casinos to lower room rates to drum up business. New casinos such as the Hard Rock struggled with financing, and three other casinos filed for bankruptcy.Begged for donations to stay afloat, the unemployment rate rose, the governor laid off state workers and housing construction stalled.
May be all this is a hoax.May be not!But there are some indicators which are flashing red.Unemployment is up, consumer spending is down, the housing market has slipped into recession, and the stock market is lurching back and forth like an overloaded washing machine. All of this could have been foreseen by anyone with minimal critical thinking skills and a healthy dose of skepticism of government.
Indian IT Industry seems to be all set to receive the tornado by laying off and cutting down salaries.May be Indian companies are smarter by taking the prevention pill so early.
Lets watch where this fall of the great economy is gonna take us all.May be its too early to pack my bags back home,Its quite ironic ,but still I would end this post with a malayalam cliche 'Papi chennadam pathalam'