Financial Crisis - the current recession

Mr. Bethel talked about the current recession and the possible implications for the Bahamians. He indicated that what began as a mild recession in 2001 has now turned into a full blown one in 2008. He said that a number of factors have contributed to the situation spiraling out of control and the economy coming to a halt. The implications for the Bahamas are:- Many jobs will be lost so people will not be interested in traveling. Property developers cannot borrow money so they will not be able to come to the Bahamas to invest. Foreign reserves will be threatened as a result of a decline in visitors so government must preserve the U.S. dollars by monitoring lending activities of banks. Fewer dollars will be in circulation. Small businesses will find it difficult to operate. Banks will curtail their lending. His advice to government would be to borrow as much money as possible to get the economy going. However, the funds should only be used for capital expenditure such as roads, schools, airports, etc. Rotarians were encouraged to buy only what is needed and not wanted over the next twelve months. Now is a good time to invest â?" buy low to sell high at a later date.