Tuesday, 15 July 2008

Credit Crunch Myth Confirmed

I can appreciate complete jealousy when I give you my credit crunch anecdotes. As someone who has formerly failed and is now prospering, many people who are struggling are likely to detest my stance.

I am now getting completely ticked off by it to be frank. I am officially hearing more face-to-face accounts of people experiencing growth and therefore scepticism about the reality of the crunch.

Yes, some businesses are suffering. Yes, food prices are higher. Yes, oil is spiralling out of control.

But has anyone spotted the blindingly obvious in all of this hype and counter-hype?

Consumption is increasing. And the only reason for the hype is the blips in the property markets, but more importantly the main reason for the pessimism.

There has been a global shift of power. Is China and the East slowing? No. The indirect effect is an economic shift and adjustment.

It just so happens that liberal lending policy in the former financial capital of planet earth has caused a ripple effect.

We are now associating too many unrelated issues as being the same malaise.

In reality, property and property-related endeavours are feeling a dead-cat-bounce effect. And the ripples of inflation from commodities like oil, grain, food prices are completely unrelated.

Are production levels world-wide higher than ever? Yes.

Have they really slowed? No.

We are experiencing a dual-speed global economy where a shifting pattern of global financial influence and muscle is being mistaken for a slowdown.

It's a bit like ADSL. Your download speed is not the same as your upload speed.

Both me and my colleague Steve meet our clients to review their IT. Both of us ask each client (small businesses) how the crunch is affecting them.

We've seen people affected negatively. But equally, we've seen too many people waiting for the slowdown, but not experiencing it happening.

Has anyone else experienced the chitter-chatter of credit-crunch sceptics? People who are seeing volumes of business remain similar or even increased? And wondering where the problem really lies?

Personally, we're growing again. The main thing which has stopped me until recently is the credit-crunch myth.

In the last 3 weeks, we've taken on 3 staff. We've also just appointed 2 more.

And for a company that employed 8 staff beforehand, moving to 13 within less than month is a huge growth spurt.

Fuelled by realism by the way rather than false optimism. That's more than a 50% increase in staffing levels (and office space) in an incredibly short period of time.

Tell me I'm talking out of my backside please! Or check out out our revived company to see how we're doing - http://www.multisolutions.co.uk/.

5 Minute Later Update

Over the last few years, the local bird population has been noticably increasing - blackbirds, sparrows (hundreds or thousands), starlings etc.

Tonight, a few minbutes after hitting publish, I saw a bird of prey (a sparrow hawk) swoop into our garden and capture a sparrow.

Sad? Yes, for the sparrow. No for the local balance. Bird of prey are on the increase too as a result.

Abundance is everywhere is you look hard enough - for me, that was the first time I had ever seen the local rumours of of increased bird population for myself.


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4 comments:

louise said...

Ian that is really great that your business is growing and doing well, you and your colleagues must be doing a good job!

This was exactly the inspiration I needed at the minute, thanks

Ian Denny said...

Thanks Louise, glad it helped in some small way.

Barbara Swafford said...

Hi Ian,

I found what you wrote quite compelling.

In the US we are experiencing a housing crunch, and there are banking issues as well, however, by being creative a person can often find ways to use what's considered a slow down, to their advantage. Thanks for the reminder that it's not all doom and gloom.

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