Ready, Steady, Spend
The Economist
January 19, 2010
WHAT a difference a year makes. At the start of 2009 many companies were obsessed with scraping together enough cash to survive, and even the blue-chips were cutting costs where they could, having had a nasty shock when the capital markets seized up the previous autumn. Depressed prices in the junk-bond market seemed to foretell an unprecedented Armageddon of bankruptcy as record numbers of firms defaulted on their debt. Gloom was the order of the day.
Twelve months later the mood in many boardrooms has been transformed. Fear and trepidation have given way to cautious optimism. Admittedly, this is mostly a reflection of the improvements firms have made to their own operations, and of the remarkable revival of the capital markets, rather than any firm signs of a return to strong growth in the rich world. But, while the chill wind of recession may continue to whistle through the streets, there will be a cosy warmth up in the executive suites as bosses contemplate the opportunities that the improving outlook, and their strengthening finances, will bring.
