It’s possible that coronavirus will change how we work. As companies encourage employees to move to remote working environments, entire countries are being placed on lockdown and markets are becoming more volatile.
The financial and real economy risks are interrelated in two ways: First, a prolonged Covid-19 crisis could drive up the number of real economy bankruptcies, which makes it even harder for the financial system to manage. Meanwhile, a financial crisis would starve the real economy of credit.
The future may seem bleak right now, but there are upsides.
The biggest challenge of the current episode of Covid19 is managing uncertainty - crisis against opportunity -
When events force rapid changes in behavior, people adopt innovations; a unique opening for creative entrepreneurs to break through
Looking back on prior eras of recession, conflict and natural disasters, each period provides a fertile ground for new ventures:
In 1665, Cambridge University closed because of the plague. Issac Newton quarantined himself at his childhood home. It was the most productive time of his life. He discovered the calculus and the laws of motion.
Thomas Edison launched General Electric right as the nation was heading into the Panic of 1893, a period of 16 months where business activity dropped nearly 40% across the nation. Nevertheless, the company persisted and went on to be one of the original 12 companies listed on the Dow Jones Industrial Average in 1896, where it remained for over a century.
In 1937–1938, during the recession, William Hewlett and David Packard decided to formulate a plan for their new electronics company, Hewlett-Packard. Still feeling the sting of the recession, the duo incorporated their business on January 1, 1939, and would go on to build a global computer powerhouse.
Fred Smith founder of Fedex launched the business right on the tail end of the Recession of 1969–1970. Yet he was able to overcome the challenge and would go on to pioneer industry and grow a business that in 2019 delivered over 6 million packages a day.
Economist initially said ‘Is this going to be a V-shaped recovery or is it going to be a U with
a gradual recovery or is it going to be an L with stagnation or a W, a double dip.
what if it is not a V, U, L, W?
Output is down. Consumption is down. Capex is down. investment is down.
Exports are down. Imports are down.
What if it is an I. The concept of a straight line down?
We can only guess on the extent of great discoveries, ideas, and innovations that could arise from this ongoing crisis.
While the rest of the economy is tanking from the crippling impact of coronavirus, business at the biggest technology companies are holding steady — even thriving.
1 Increase in demand for Cloud computing platforms
2 Increase in demand for Grocery delivery apps
3 Increasing usage of Remote and collaboration tools
4 Increase in Video streaming sites and Social media platforms
5 Increase Video game usage and Live streaming
6 Increase intime and money spent on Phones
Stay Creative and See You at the Top