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Inflation and Credit Concerns Going Down

photo courtesy of Bloomberg.com

photo courtesy of Bloomberg.com

According to a recent article published by Bloomberg.com, there might be light at the end of the tunnel as far as the Japanese economy is concerned. The stock market actually made significant games for the first time in a week or so and many of the concerns that were surrounding inflation and the credit crunch appear to be at a low point not just over the course of the week, but also over the course of the whole recessionary period we have been in.

Now, you might be wondering why I would bother writing about the Japanese economy for a blog that deals with business, home business and business in the United States. Well, the simple reason is that things are very connected globally nowadays and that means that what affects one part of the world ends up affecting other parts of the world through these chain links. If Japan, a first-world economy very similar to that of the United States, is experiencing a general easing up of concerns, then it is quite possible that similar things might happen in this country with business as well.

This is by no means suggesting that we might be on our way out of the tough times, but rather that we might be approaching an eye in the storm. Keep your eyes on the economic indicators that most affect your business in order to see if this turns out to be true.

Japanese shares rose for the first time in a week after crude oil dropped, relieving inflationary pressure, and as credit-market concerns eased amid speculation Lehman Brothers Holdings Inc. will receive an investment.

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Oil Prices Manipulated through Contracts

While many of us are heaving a sigh of relief on the recent events that saw oil prices going below $115, it is still far from normalizing to the prices that we had enjoyed some months back. Apparently a lot of political issues have been the cause and bordering nation disputes have likewise made oil prices to where it is today.

There are two points for discussion here. Let me enumerate them regarding the current oil price frenzy.

Russia’s invasion of Georgia

While we are celebrating, turn around and look at the oil price in the market. They are not slowly spiking up and a lot of it is due to the current conflict between Russia and Georgia. For the record, Russia is one of the contributing nations towards oil needs in the world and apparently they are now in semi-war with the United States.

With that said, we are slowly getting the feelers. The oil prices are spiking up in preparation for another crisis and if the dispute with Russia is not settled, we may just see another round of oil price increases. Something we do not like but a reality we must face.

Who are responsible for Oil Price?

Oil companies command prices but not depending on supply but more on how they negotiate through contracts. Similar to business, negotiations and set prices are agreed upon depending on how much and how many barrels of oil will be exported from one destination to another.

Unlike what most of us think, oil price hikes are not always signs of oil shortage. Sometimes you have to audit the oil companies closely to get the real score. Sad to say, this is a reality and it is something that we can say that has originated from our own selfish professions in depicting business and focusing on making money.

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Two Bridgestone Ads Make Finals in Cannes

The key for measuring advertising through commercials is creativity and the impact it can have on the target market. Apparently these two things were present as Bridgestone commercials “Scream” and “Lucky Dog” made the final list of possible winners at the Cannes Lion International Advertising Festival.

Here are the two ads:

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Cutting Back on Management

A big mistake that is made by a number of people during economic downturns is to layoff employees starting at the bottom of the chain. While it may surprise you to learn this, only the very large corporations can actually get away with this and even then they only do it to protect senior employees as opposed to doing it because it benefits their bottom line.

The simple fact of the matter as far as small and medium businesses are concerned is that keeping lower rung employees is a lot cheaper than keeping management and since management tends to be hired in larger quantities than necessary anyway, laying off some management employees can serve to save you a large amount of money while at the same time ensuring that your management employees end up working at peak productivity. It is a nice way to kill two birds with one stone and it could save you tens of thousands of dollars each year.

Money like that could easily be the difference between the sky and the grave for a small business and therefore it is something you should definitely consider if the company falls on hard times. Businesses do have a moral imperative to its employees in times of economic downturn however, so make sure that all other options have been exhausted before you act on this option.

Diversifying Investments and Savings During Recession

Recession is something that is apparent and for most people today, knowing when and if they should invest their assets at the moment seems to be something that has taken them aback. With the world’s economy practically breaking down, would you risk making investments to still get profit?

Apparently you can. But it will take more than using your money and references to make the wise choices. Here is a video that can help. All of us should be wise to make sure that whatever assets we have now go towards the right places at the right time.