After The Financial Crisis

2009-03-05T07:41:00.000-08:00

It is obvious that the world will change deeply the coming years. This financial crisis and the recession that will follow marks the end of many things like the endless capitalism, high bonuses and salaries for 'the happy top', the new position of (inter)national governments. Many things are changing the moment you read these lines. Like improving ones home instead of moving to another; giving the car a better care and wait with buying a new one; second hand websites sell much more then a year ago; businesses are introducing 'longer life' service for all kinds of products. Companies try to establish direct contact with their prospects with sharp priced products; restaurants are less frequently visited, people try to find their 'happiness' at home.
But most of all things will change between the ears:

living on credits is over: too high risks, unwise cash flow management, no control
modesty in spending money, complete repositioning of living patterns
smaller companies, transparent structures
open house (open mind) attitude in financial reporting, no more 'fooling around with figures'
a new balance between capitalism and 'belonging together'
incorporate aspects of' the Islamic way of banking like no speculation (muqarada), securitized debts (sukuk) instead of complex derivatives, direct link between loan and asset, shared profit&loss (mudaraba)
renewed emphasis on personal relations, family
re evaluation of the importance of stock markets and too complex products-
a more long term oriented management attitude

And hopefully:

an end to extreme salaries and bonuses
better international relations, we need each other
more modest western world (it's about time)
better leaders, fewer managers
more modest use of planetary resources
better position for non western countries

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Carel