The Financial Mess

by The Cutter Business Technology Council

Let's face it, nobody today is thinking about anything other than the unraveling global economy and its effect on our companies and our lives. So we'd be crazy to write about any other subject. Our topic is trends, and this is the mother of all trends.

What's happening now is not a recession but a depression. The difference is that in a recession economies slow for a while; we hold our breath, tighten a few notches, and wait it out. A depression has an entirely different characteristic: money scurries for cover. Companies and individuals hoard cash; demand for everything dries up. Everyone is in wait-and-see mode. As the effect ripples through the economy, things look worse and worse. Prices go down as providers try desperately to resuscitate demand. The money stays off the table. The fear of fear depresses all progress.

Ending the last depression took a Roosevelt and a war. Who knows what will end this one? So we've asked the Trends Council for advice about how to survive during the mess. The problem is hardly subject to easy (much less painless) solutions, so don't expect miracles. But for a few useful insights, read on ...