For over a month now, I have been reading news online about some people echoing signs of economic turn-around. I was just wondering where they got the concrete figures. Personally, economic turn around would mean that my debtors can pay me the little amounts they owe. Since June 2009, I would say financial meltdown has just started biting the hemlines of business. There have not been a lift as yet along the corridors of debts and interest that are bundling higher and higher. I should say, when the prevailing interest in the market goes back down to about 2%, it is only then, that fairly I could say the economy is picking up.
Apparently, some people must have mistaken the ease with which fund raisers for donations to the beggars have been realized in great figures. But this is not economic turn-around. Purchases and income from such funds are ephemeral. What is more of a grounder would be the ability of people to pay debts and make the balance sheet liquid and solvent. In simple terms, if people can not pay their debts and what they earn is not even enough for the very basic need which is food, there is simply no such thing as economic turn-around.
From another point of view which I have read sometime ago, the advocate and author supposed that given a chance to invest, one should do so instead of spending the money to settle accounts. But, while this idea too is ephemeral, it will create chains of insolvencies which will rather dampen any attempts of ressurecting the financial capabilities of an economy. A single persons practice of the principle could endanger a whole lot of economic zone. Sensibly, when no one complains of non-payments and solvency can be gleaned from a financial statement and balance sheet, then, economic turn-around is surely taking place.
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