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How will the Year 2009 standout in the economic history of the world economy? It is difficult to predict. But the first indications are not very encouraging. The continiuing job losses and lower salaries are a pointer towards economic down turn in almost every country.

In America, the world’s top and strongest economy lost 533,000 jobs and approx. 1.25 million jobs in the past quarter. Similar trends are showing in other economies in Japan, Germany, France, UK, India & China, albeit with varying degree of crisis.

Is it the result of massive promotional policies of the financial markets that offered loans to customers beyond their payback capacity?
Is it due to the inefficiency of the current systems operational in the economies worldwide that need an immediate update?
Is it due to the obsoletism caused by better technologies?

Is it the price for lofty and noble ideas encouraging a free economy?

May be it is the cumulative impact of all the points in red made above, except the green.
The current economic trends may put pressures for a new policy on the outsourcing industry. Seeing the current trends, it seems likely a new & balanced policy may be put forward in 2009. The new policies will be balanced between creating new job opportunities & achieving lower cost of operations.  Whatever new trends may take shape in the near future, the ideals of free economy  will need to be reasonably protected.  Considering the long term non-financial value hidden in the merits of  free economy,  it will be a difficult  but not an impossible task to create new job opportunities while protecting the ideals of free economy. The banks & financial institutions will also need to follow flexible policies to watch and respond in a way that will  not cause the economic activity  go below the  sustainable mode in any industry segment or in any region as the benifits of free economy cannot flourish in a economy that moves below the sustenable economic acitivity.

It is in this respect of economic sustainance , the banks have responded very responsibly worldwide by lowering the interest rates. This will bring good results only if the money supply helps the financial markets to recover and the consumer is able to come out of the debt trap by lowering its consumptive life style.  While looking at the current mortgage rate offers, I  stumbled on fha.com that offers vey low mortgage rates.

The next question is? Will the current crisis drive its lessons to ecomomies for lowering wasteful consumption, achieve efficiencies beyond the shop floor? It will also create pressures on the developed economies to move to lower consumtion & to move to more responsible and stable financial markets.

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