Few days back, sitting in the county library, I was going through some magazines - a thing which I hardly do, now that the world is hooked to net. An independent line caught my attention - “America has invented a new type of bomb which destroys all humans but leaves the building and infrastructure standing. They call it Stock Market”.
True to its description, I tried to recollect all the times that this “bomb” has exploded in the past. There was the Great Depression of 30’s which brought every business, big or small, to its knees. Then there was the fall of 70’s which dented the American Car Industry in Detroit so bad that their engines are still knocking. The IT slump of 2000/01 is still fresh in everyone’s mind and the only one that I experienced in my full consciousness. Nowadays if you stand outside the gates of major IT companies in Bangalore or Chennai, you will see a herd of solicitors asking you to open an account with a bank or take their credit card. Almost 8 years back these same banks were declining credit card applications from IT engineers. Aftermath of explosion? Its nothing surprising though; stock trends have always been sinusoidal. What rises has to fall and vice versa.
Life is unfair - perhaps that’s why this latest market slump has come only 7 years after the last one. And it is driving people crazy again. Every morning I get up and before going to office I check the health of stock market on Reuters. Gives me an idea how long I may need to wake up at 8 AM every weekday. With every new low hit by the market, fresh stories of layoffs come floating in the air. One such story I heard was from a company which recently laid off a couple of hundred resources. Word is that the engineers came to office and were not able to log into their respective network accounts. Thinking this was a technical glitch being fixed by the network team, the mood was anything but suspicious. Finally, it was conveyed to them that the company longer needed their services and that they can go home “now”. Since then, every morning that I am unable to log into my account due to a “genuine” technical glitch, my pulse rate takes a northward stride. Is this it? Is this how it ends? How it feels?
I attribute the ups and downs of my recent mental state to the media - mostly. One day I heard on the news that unemployment rate this month has improved and that market recovery isn’t far now. And yes, the unemployment rate had dropped by a whole half percent! I could breathe a sign of relief. On another channel, they were showing the same news with additional research done by them. It seems that the government has a weird way of calculating unemployment rate. If a person has lost his job and is desperately looking for another one, he counts as “unemployed”. But if a person has lost his job but is not looking for another, he doesn’t!! So, losing your job AND your hope may not be good for you, but you sure can’t beat its positive effect on the nation’s image and news-watching citizens’ health. See the silver lining? So lose hope now and be the bigger man….. possibly the saviour of all mankind.
PS: “Hiatus” isn’t what I will call my long absence from blogging. This word is more synonymous with Rock Bands. Perhaps the “King of Procrastinators” may be a better term for me; “Pure Laziness” for my absence.



14 comments
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May 12, 2008 at 10:20 am
Nita
Interesting to hear what is happening out there…some kind of a fear psychosis in the media huh. Here we hardly get to hear of that. guess all immigrants there must be nervous as they are likely to be laid off first?
May 12, 2008 at 10:25 am
Oemar
@Nita
I moved your comment to this post, you had posted it under “Iran Urges Unity”. Anyway, yes people are quite scared over here seeing the market’s rollercoaster ride…. 2001 memories are rushing back to everyoen when thousands had to return home because of the slump. And everyone has lost hope as far as oil prices are concerned. Hybrid cars are out of stock in every showroom and there is a 2 month waiting period on them if you book now. Shows that people are looking at a long term strategy.
May 12, 2008 at 11:25 am
rambodoc
Interesting to hear of how you are worried about losing your job every day. I have relatives who have been going through the same shit year on year. And the worst thing is they keep spending on credit, and not saving. I think this consumptive attitude is a reflection of the security that Americans (or NRIs) feel.
I may be biased in my observation here, though!
May 12, 2008 at 7:23 pm
Oemar
@doc
Well said… even I am scared of credit… but its more of an addiction. Some months back my card would max out and all I would have bought is junk. I try to reign in that temptation now. I am not too sure that this comsumptive attitude is due to a feeling of security. I dont know ow anyone can feel secure in this market.
May 12, 2008 at 8:01 pm
rambodoc
But I tell you, the best thing to do now is buy property. Once the US comes out of the unnamed recession in a year or two, the property boom will restart. After all, the people whose homes foreclosed would have to be honey-trapped all over again, eh?
May 13, 2008 at 3:02 am
Amit
IT is really going through a bad phase right now. I tried to switch last year and it was really bad. There aren’t many oppertunities or maybe we have to wait for sometime for the clouds to clear. What surprises me is that even if you are experienced, you can be thrown out anytime. I know of a case when a senior professional was thrown out just because he was becoming “unaffordable” and the company could use a cheaper resourse in his place.
May 13, 2008 at 8:17 am
oemar
@Doc
Yes thats the best thing to do right now if you have cash in hand…. because the banks have tightened the loan process so mush right now that hardly anyone will be able to convince them for buying property.
@Amit
Well one can be thrown out even if he is experienced, as you said. In fact chances of getting thrown out is more if you are experienced ’cause your billing rate will be higher. Companies will do anything to survive. I know a recent case where a company took a 2 year exp guy over a 8 year one just because the former was ready to work at a lower price.
May 13, 2008 at 1:18 pm
Prax
i dont know why these hr depts are there, it is not only a rude but a very crude method of firing someone , u somehow kill a part of his spirit , and uncertainty both in job aspect and in the stock market are the biggest negatives
on credit card debt i just impounded my friends platinum card, if i didnt , hed go bankrupt in the next six months, and he earns 5 times more ..
he knew i knew finance but had an inherent fear about the whole thing and how id react on knowing his state of finances so for the last 4 yrs avoidance was his best strategy…
after a long 4 hr session of talking to him i think he is on the right track
i hope he is, and he knows its his battle to fight
i don’t think it is that much a insecurity matter it is how u have been brought up ..most people dont know how to handle money prudently
but as spending goes up and multiple cards get maxed , insecurity kicks in
what do u think ?
May 13, 2008 at 1:52 pm
Prax
doc i think it is prudent to wait till end of the yr and assess the situation
and buying a house in us would be a great bet at that time
even Britain is facing a housing price fall and even though the govt says everything is fine a recent memo leak has estimated a 5 to 10% fall there
May 13, 2008 at 3:49 pm
عمار - aMmAr
Look who decided to show up! Welcome back man
Where you been?
May 13, 2008 at 6:13 pm
oemar
@Prax
Well said about the method of firing. Not that I support this method, but consider this: Suppose you fire one of your subordinates and give him the whole day’s notice. Now would you be comfortable thinking that a disgruntled employee is sitting in a cubicle with full access to all sensitive data? Perhaps thats why in many companies the supervisor walks the employee to the gate when the latter is fired.
@aMmAr
he he he….Thanks man. I had become too lazy to even tye one word, so took a loooong break. Initially I wanted to take a month’s break but kept extending it by one more month…. missed out all the action for 5 months.
Yeaaaaaah, look its me !!!!
May 14, 2008 at 2:55 am
Prax
agreed, and well said. if you so want to fire an employee better do it at the end of day even most companies make announcements post market hours.
How difficult is that ? We are heading for the hire and fire regime and it is better to do it with a sense of maturity..
May 14, 2008 at 7:09 am
pr3rna
Welcome back Oemar.
It must be scary especially for people who have families to support. Don’t you have some kind of mandatory notice period there?
May 14, 2008 at 8:12 pm
oemar
@Prax
Ya I agree with you.. probably they want to save even one day’s pay
@Pr3rna
Thanks Pr3rna…. well most of the companies here have a lot of contractors working for them.. and the easiest person to fire is a contractor.. no questions asked. For permanent employees, they may have to give some compensation. But either way, yes its scary.