Suicidal depression

This issue has been lingering on my mind for a while now... I was meaning to write something on the matter and post it last week. The only factor being that the media has presented alot of speculation on the state of the economy. Most people - who are not directly affected by the current economic situation (i.e. professionals in sectors other than finance) - may feel dismissive and callous, claiming the media is feeding us "exaggerated cr*p". Indeed, the whole issue of the eroding financial system of the West is well over-publicized. But I - myself - am in a state of panic, and would declare this sovereign nation to be experiencing "suicidal depression".

Firstly, when Lehmen Brothers collapsed, some professor at Imperial College stated that UK will not experience a severe/direct exposure by the fall. Merely for the reason that the US mortgage market is directly hit by this loss, as opposed the the UK market. In my opinion, it is severe and has - as subsequently witnessed with Lloyds Halifax - allowed room for speculation on the trading floors.

Namely, SPML and Preferred were the two subsidiary mortgage firms in the UK owned by Lehman Brothers (LB). This is just a strand of the impact of LB in the UK. And even if 5,000 job losses may not sound so much, the effect will take in the form of a "spill-over"/"knock-on" effect. This means that there are 5,000 more jobseekers in the job market, far more experienced than a graduate with the same competencies, with the likelihood of competition for a secure position going up. The effect also implies, the amount of tax per working head increasing (and that includes the callous people mentioned in the first para :P). If the redundant workers do manage find a similar position to that of their former employment, chances for a fresh graduate (of an equal calibre) are slim in the niche job market, and thus, unemployment will rise together with state benefit for those who seek it.

However, it is not only LB, or the recent acquisition of Lloyds that solely distort the demand-supply side of job cuts. If we were to open a copy of a generic newspaper, we would still find that many organisations are cutting back owing to the "credit crunch". This brings me to my next area of focus - recession. When the "credit crunch" took its toll earlier last year, it was anticipated that the gloomy economy is susceptible to remain the same for another year. Unfortunately, with institutions disintegrating or being nationalised, the inclination for the reversal of gloom to bloom will roughly take another several years at the best.

In a nutshell, we are living through bad times if not as brutal as living in countries experiencing war. If ex-fed man Alan Greenspan (BBC) can be shocked at the intensity of the current economic crises, we are sure to be witnessing a well-documented story for the books of timeless history.