If Double Dip Recession Really Happens, What We Should Do?

If recession occurs in the US and large corporations go down, that can have a major affect on the rest of the world.

Everyone is debating if there can be a double-dip recession. Are people preparing for this?

America and Europe now appear to be sliding back into recession, and governments and central banks are powerless, pressured by circumstance to consolidate, not stimulate. There is, in effect, the first synchronized global fiscal squeeze since 1980 occurring at exactly the wrong time.

To avoid the world from another recession (not a double-dip – it is too long last one) it comes down to whether the world’s businesses can look past the government debt morass and invest, and whether or not the banks are ready to lend to them.

The irony is that whereas Europe is being forced to consolidate by nervous bond markets, America is doing it in spite of enthusiastic bond market support for government debt.

The US 10-year bond yield sits at 2.6 per cent this morning, a near record low, so there is no shortage of money available. No, the US is slicing government spending by 2 per cent of GDP as a result of a group of anti-government right-wing politicians gained control of the House of Representatives in last year’s mid-term elections and are actually imposing their ‘mandate’ towards a weakened and desperate president.

For those who fear that there is again a recession in 2011 in USA and world market is that is true if that’s the case how can we prepare before any worst that could happen particularly in IT sectors.

If double-dip recession really is approaching, I’d suggest:

Hold on to your most priced possession- Clients! Let them feel special; create a bond with them so that they become your brand ambassador.
Stop splurging money on things that won’t help you much in generating sales/business or even enhancing working environment.
Don’t make any further investment and hold on any M&A [Mergers and Acquisitions].
Make your current business sales process strong so that the conversion rates are higher and your sales funnel is full of good prospects and not just dead leads.

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