There was an interesting analysis in “The Economist” this week, looking at the US economy’s current woes and the measures being implemented to turn the tide around.  However, unlike most pieces about the current global economy which try to predict when the economic situation might improve, this article examines what the long-term consequences might be from this current global recession.  If their analysis is correct – which I believe it is – we’ll have to prepare for a dramatic change in our spending habits.

As the article from “The Economist” points out, growth in the US economy for the last few decades has been fueled largely by consumer spending as a result of easier access to credit, thanks in part to companies like General Electric and GM that moved into the money lending business as a quick way to generate revenue.  However, as the current economic downturn has demonstrated, this model for economic growth is clearly not a sustainable one.  With this comes the realization that the US economy, and by extension the American population, will have to Click here to continue reading »”Is This The End of Mass Consumption?”

After months of speculation, the wait has come to an end.  On June 1st, the largest North American car manufacturer, General Motors, filed for Chapter 11 bankruptcy protection.  The move comes as little surprise as the writing has been on the wall for some time.  The question now, though, is what the future holds for the restructured, and to be anticipated rebranded “New GM”, car manufacturer.  Some clues on that can be gleaned from what measures they choose to undertake during their restructuring process.

Obviously, one major step that the “New GM” will need to take is to pull itself off the radar.  I know this might sound counter-intuitive when they have so much inventory left to move.  However, what GM needs to do now is take the time to redefine itself, both in terms of its product as well as how the company views itself if they are to once again draw consumers to their products.  Besides, if they had difficulties selling their cars before, I can’t imagine any amount of advertising is going to sway consumers to purchase a car from a company under bankruptcy protection while economic uncertainties still loom.

The reality for GM is that their current restructuring is not merely a setback that Click here to continue reading »”The Fall of GM – Have the Lessons Been Learned?”

With the ongoing uncertainties of when the global and regional economies will pull out of this deep recession, I think it’s important that all consumers understand what exactly led to this situation rather than simply relying on economic forecasters and politicians for their stance on the matter, which seems to change on an almost weekly basis.

To that end, I want to share this video created by Jonathan Jarvis called “The Crisis of Credit Visualized” as it does an excellent job of breaking down this complex issue and presenting it in a fashion that is easy for everyone to follow.  Thanks to Jarvis’ video, viewers will not only have a better foothold on what exactly caused the current financial meltdown, but they’ll also be able to better evaluate whether the measures our respective governments are putting into action will resolve this economic downturn, if not why new regulatory measures need to be implemented to ensure such a situation doesn’t arise again. Click here to continue reading »”A Guide to Understanding the Current Economic Crisis”

I read an interesting post on Twitter today by Kirk LaPointe (@kirklapointe), managing editor for the Vancouver Sun and Adjunct Professor at the UBC School of Journalism, regarding Barack Obama’s visit to Canada later this week:

When Obama visits Cda on frist[sic] intl trek, no speeches, six hours, see ya. We’re the foreign policy equivalent of an O’Hare layover.

Despite what Canadians might feel about Obama choosing Canada as his first country to visit as the newly minted US president, with more details emerging regarding his trip to our country, it’s becoming increasingly apparent that this is more a dress rehearsal than a legitimate start to his foreign affairs platform. Indeed, many news reports have the Obama team admitting that Canada was chosen because of the easier logistics of arranging a trip to Ottawa than say Brussels or Paris. Also, notice how there’s been little if any attention in Washington in regards to Obama’s impending trip to the Great White North. Robert Gibbs, Obama’s Press Secretary, only bothered mentioning this visit at the end of his daily briefing on January 28th with this rather perfunctory remark – Click here to continue reading »”Obama To Canada – Sorry, But I’m Just Not That Into You”