It has been a while since my last blog post and the global economy has begun to stabilise. The pace of unemployment claims has begun to slow down in the
The power house European economies of
The global central banks deserve credit for not letting the credit crisis develop into a depression. Their combined efforts of pumping money into the economies have had a stabilising effect.
Like a heroin addict we have begun to rely on our governments to prop up our economies. The question is over time can private industry and private consumers begin to consume and help industries wean themselves off the government cash injections?
I believe they can and that we are now at the start of the next growth cycle. I do not see major upside in the next few months to the levels we have reached in the stock markets.
I refer to my blog on the 25th of April. In this is stated that the final stage of the current recession would be around now and that we would be entering a new growth phase.
I think there is evidence to support this now. Only last week I heard someone say the letters “IPO”, up until now the raising new money during initial public offerings would have been impossible. M&A activity is showing signs of life with Ebay selling Skype in a multi billion dollar disposal.
It is difficult to see global GDP growth reaching the same levels as those pre credit crunches but mergers and acquisition is a way for organisations to improve operational efficiency and product development.
Q4 will be a big build up to 2009 which will see a big increase in mergers and acquisitions as the first stages of the new growth global growth phase starts.
