This past week was the one year anniversary of several big economic meltdowns. A year ago our economy fell into free fall with analysts and media pundits crying, “The sky is falling! The great recession is here! Cash is king! The end is near!”
One year later - at least in the tech field - there are big signs of life. Google buys a company; Intuit buys a company; Adobe buys a company. There is $2.5 billion pumped back into companies.
I am hearing that bank financing is becoming available – at higher interest rates - but money is starting to flow back into the system. Stock prices for banks have rebounded. Check out the one year performance of Capital One and Fifth Third as examples.
And venture capital is starting to flow back into growth-oriented companies. This is very positive. This will stimulate hiring of employees as unemployment is the biggest issue I see we as a nation have to face.
I am sure some pockets of commercial real estate will still feel pain and Europe is still in deep yogurt. But as far as I can tell, the worst is over here in the US. Our economy hit its slowest level is a decade and now is on the upswing. The experts don’t know anything. I bought some real estate, a car and invested in some companies at great prices over the last year. I took advantage of the down turn and I’m glad I did. I believe we will see slow but steady gains in all economic metrics over the next 12 months. The Caps and Mystics had their best years ever in terms of revenue and attendance. I see green arrows ahead there too.
As they say in the NHL, “Kick save and a beauty.” The economy and system worked. The world didn’t end. We stayed strong.