Reasons to be cheerful (part 3)

This wisdom should be attributed to Tim Watts, Chairman of Network Group Holdings - however I agree with it all so thought I'd share it.

REASONS TO BE OPTIMISTIC
Much has been made of the current economic climate downturns, crunches, recessions, depressions, deflations etc. but in truth having been through four economic downturns previously, the portents are really quite optimal. I think the next six months will be difficult followed by a fairly quick turn around and my reasons are:-
1. Inflation has dropped like a stone and will give a real boost to disposable income.
2. The fall in Sterling caused by the dramatic drop in interest rates will have a very positive impact in the second half of the year, boosting gross domestic product by nearly 2%.
3. The rebalancing was inevitable after 62 quarters of uninterrupted growth - twice as long as any other period in economic history. Following the correction we can return to a sustained growth path and a much better future.
4. Despite the best efforts of our European cousins, we have retained our flexible labour market, which will enable us to adapt to the forces of change much quicker than any of our neighbours.
5. Despite the derogatory comments in the Press, we actually have a world class university system , producing more academics per head of population than anywhere else in the world. The reason the European Research Council stated that was that Britain had the largest share of "excellence based" companies and accompanying awards than any other European competitor; twice as far in front as the second place country, which was France.
6. The fall in the equity market makes current valuations look very attractive for medium and long term investment, which is what the recovery needs.
7. Massive infrastructure project commitments have been announced and a 20 year programme for energy regeneration approaching a trillion on renewal of our nuclear fleet, massive investment in the transport infrastructure as well as schools and public projects - a commitment to change to low carbon economy should provide a massive (future debt to our children) kick start to the economy.
8. The new U.S. President has a strong mandate committed to pro-growth policies and a trillion dollar short term injection.
9. The recent meeting of the G20 nations all committed themselves not to make the same mistake of protectionism that turned the 1929 recession into the 1930's depression (i.e. we appear to have learnt by our previous mistakes).
10. There is a general election coming and the Government economic policies will be invariably "loose" to stimulate growth and ensure that the economy has re-started for the second six months of 2009.
The darkest hour is always before the dawn and I know that there will be some considerable pain to go through before the patient can recover. We all must look after each other, help each other and be committed to exceeding our customers' expectations of ourselves. My sincerest best wishes for the New Year and we are all in this together.
Kind regards
TIM