The job of an economist or policy adviser is not to propose solutions when crises have already occurred, but warn those in power be it in the public or private sector about the crises to come and what we can do to at least minimize their impact. Paradise in my view is about to enter at least two years of hell as the economy not only feels the impact of a slowing global economy but the results of our own shortcomings domestically as well.
I believe that I have been one of the few economists out there to talk about paradise being an unsustainable bubble and believe you me, years of mal-investment and lack of productivity is finally beginning to catch on to us in a near perfect storm. What worries me the most is that while many policy makers seem to have a good enough idea of what is happening at the international level, few seem to clearly understand that the private sector is as fragile as ever and that the commercial real estate market is a bubble in the making. As global growth struggles to even clock 3% this year and the next, all the ingredients for hell to happen are slowly but surely coming together. This article then is about going through hell and how to survive it.
By Sameer Sharma
The author, a chartered alternative investment analyst and a certified financial risk manager, is the Head of International Funds at IPRO Fund Management.
Courtesy: Conjoncture: A Bilingual Journal of PluriConseil