just how bad will this ression be, page-25

The recession may actual be good for us as a nation (although it is little comfort to those who have lost much).

This is a report I read when I had nothing better to do:

http://www.minerals.org.au/__data/assets/pdf_file/0009/27378/AE-MCA_Futre_Minerals_Australia.pdf

It is a report prepared by Access Economics for the Mineral Council of Australia in May 2008 (before it all got worse). What I got from it is the following:

1. Australia has a competitve advantage worldwide in mining.

2. Mining boom was driven by price inflation, not necessarily increase in volume and productivity.

3. There are servere bottlenecks in Infrastructure which has effected the ability to supply and therefore a loss of market share across the broad mineral group.

4. Once market share is lost it is hard to recapture.


This is why I see the global slow down as a positive:

1. Australia can use it competitive advantage to regain market share.

2. Properly targeted infrastructure development can then increase productivity and capacity to supply.

3. Positioned for growth by retention of market share (if not increased) when the cycle eventually returns.

Same for business. Last recession, the businessees who faced the challenges, made the necessary adjustments and found creative solutions did well and positioned themselves for growth when the cycle turns.

It is only a question on how to identify these businesses. For that you must DYOR.