Happy first of December!
The year is winding to an end and sometimes reading the business news it feels like it is the end of times as well.
Then again some people are by natural inclination negative in the face of positivity while you also get those eternal optimists who will not cannot say the word recession while all around them the signs are looking larger and nastier all the time.
The government has said that South Africa will not enter a recession. However some economists have stated that they would not be very surprised if we did enter a recession while some are probably hedging on the expectation already.
The Times brought us a story that warned against getting 'bamboozled' into thinking that the global crunch would somehow pass us by. There appears to be some sentiment that the wide current account deficit and pressures on GDP could pull us into the negative growth zone for a quarter or even two.
Two consecutive contracting quarters define a recession.
Other analysts expected infrastructure projects to have their funding cut, and that mining ventures would also suffer.
Clearly, that with out a sense of humour we would all actually be in much more dire straits. Hayibo brings us the spoof story that Trevor Manuel (Finance Minister) and his partner Maria Ramos (Transnet soon to be head of ABSA) were considering 'blowing GDP on love nest'. If this was true one could guarantee that the capital would have already left the country before we could all shout 'No Way!'.
The Times published a useful financial planning guide for next year which will help you keep your finances in order and achieve your financial plans. The Times also brought us an article looking at debt consolidation and how it can help you to hold on to your assets, if you are feeling the pain from the credit crisis. It can help you reduce you payments and take some of the pressure off when a professional re-negotiates your debts for you.
Business Report published a view from ABSA that the housing market was going to get worse before it gets better. ABSA provides a rapid auction service and a debt repair line. This is not ideal if you want to keep your house and if you get debt consolidation or debt management you should be able to hold onto those assets.
The Mail and Guardian reported that retailers are expected to offer massive discounts in the run up to the holiday season this year in order to entice suffering consumers to come back and spend. However don't go crazy like some American shoppers this weekend.
They trampled to death an employee who was sent to open the doors to the frenzied consumers outside.
The New York Times reports that police had been called in to control the crowd hours before opening time, but could not hold them back, whereupon they surged through the doors trampling to death the temporary seasonal worker, 34.