Polls / July 2, 2013

Do you think the global financial crisis is over?

The global financial crisis is not over, according to almost 70% of respondents to the latest eZonomics online poll. The remainder is split between those who think it is over and those who do not know.

Is it over yet?
The global financial crisis that still dominates discussion and policy and spurred a lot of lifestyle change is widely regarded as having started in August 2007. Almost six years on, the majority of respondents to this poll still do not think it is over.
The global financial crisis was so severe some call it the “global Great Recession” and others have compared it with the Depression of the 1920s and 1930s.

Countries recover at different speeds
The Eurozone came out of technical recession in 2009 but slipped back into recession, in what is known as a “double dip”, at the start of last year. It is yet to come out the other side again.
The United States is growing again but debate about the fragility of its economy reignited a fortnight ago after a speech by Federal Reserve chairman Ben Bernanke that suggested stimulus there may be slowed later this year. According to calculations by regarded magazine The Economist last month, world GDP grew by just 2.1% during the first quarter of 2013 year-on-year – a lot slower than the 3.1% at the same time a year earlier.

Individuals recover at different speeds too
Just as countries have different speeds of recovery from recession, so do individuals.
Someone who lost their job in the recession could well take longer to recover financially than someone with no dependents who remained at work.
Likewise, if a large employer in a small community closed, that area may bear the scars of recession for longer.
Government austerity and other factors will also make a difference.

Lessons from the financial crisis
Figures indicate people have actually saved more since the global financial crisis.
However, that is a doubled edged sword – or paradox of thrift – as economies need spending to recover.
ING chief economist Mark Cliffe made a series of video lessons for investors from the financial crisis for eZonomics, including a warning to “keep it simple” and “be wary of borrowing”.

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eZonomics team
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