Picture: from Reuters and The Australian

Since September last year, “global financial crisis” have become the operative words of our days.  Hardly a day comes by without hearing something about these three words.  Just two days ago, I come across the acronym version, “GFC”, from the television.  Perhaps it could make us feel less threatened, or distressed by the sound of it.

Governments have not been slow in rendering rescue plans.  The like of bailout or stimulus packages are all targeted to encourage consumption, retain jobs, and hopefully create enough fuel to keep the economies running above the recession line.  Though some allocations might be debatable, their spirit is commendable.

If anything, I would like to see more in the area of restoring confidence, trust, and hope.
More than ever, it is time to revisit these traditional values that underlie a healthy business environment.

The global financial crisis is also a confidence crisis.  It is a financial tsunami because it was fuelled by excessive borrowing, excessive leverage, complicated forms of derivatives, a gambling mentality, and an over-heated property market, among other things.  Leverage is good, but excess leverage is disastrous. Risk management has been thrown out of the window.  Just a few days ago, I learnt from a TV interview that some banks actually were able to lend sixty (60) times more than its money reserve.  No wonder when the tides turned, it could hurt so badly.

Put confidence and trust back into the system
Confidence and trust are the cornerstones of any relationship, and business is no exception.  When consumer confidence (and indeed, business confidence) and trust are at stake, surely the restoration of these elements should be placed amongst the highest priorities.

Everyday, there are no shortage of news and announcements telling everyone that the worse has yet to come.  What if, someone can tell us that, despite the uncertainty, enough parameters have been set in place to stop all those “funny, irresponsible deals” at the far end? In other words, we are not allowing further damaging factors to the system.  Would it be a comforting message to hear? Would it shed a light of hope that we badly need?

Needless to say, that someone would aptly be the government.  Any such assurance or re-assurance is definitely welcoming. I bet it would be cost effective too.

Putting integrity in place
On the same token, if there is something that the government could do to expose or  eliminate ponzi schemes, the like of Bernard Madoff’s and Allen Stanford’s, how far-reaching can it be to boost morale and confidence level of its communities?

Not talking down the economy
Whilst it is important to build confidence and trust and hope, it is equally important not to spread the seed of fear.  It is a particular trying time for the media, let alone the government, to inform but not to over-exaggerate.

Reform the system, and cut out red-tapes
Bad times can also be good times in the sense that it offers a great opportunity to reflect and reshape for a better future.  There is a lot of scope for a responsible, and proactive government.

Let transparency flow through the system
Transparency casts away doubt and helps building confidence and credibility.

Enhance collaboration across countries and governments
Global problem needs global solution.  It is a time that collaboration among governments would be most needed.  It is the synergy effect.  If anything works, it would work better in a collaborated fashion.

Lead with vision
We like leaders with vision, more so in extreme times.  We hope that our leaders would look beyond the financial hole and work together towards a new order of world peace,  harmony, and prosperity.

A time to transform
Last but not the least, let’s not be too distressful, but be hopeful and thankful that we are part of an era of enlightenment, meeting new challenges, and overcoming obstacles, and coming out stronger and better overall.

Live Life, Junius.