The Position of Economics

Can a Brand, Can an Organization¸ Can a Government, Can a Country be blamed, I believe not as the result of the situation was the of various vortexes that affected the globalized economy as thereof, the vortexes collided with epic force it too each another, the result was a “Hybrid Vortex” (all the vortexes added up) – that played out across world economies, anyway if we do play the “blame game” what would actually be solved? As the situation and experience would still exist,

In this globalized economy a proverbial “sneeze” – results in a chain over events that are played out in various unique countries, industries, and to clients and to customers as individuals as households across the world over,

The practice of Securitization – this means a Financial Institution would have a book of loans that are sold more commonly to an SPV (Special Purpose Vehicle) and the SPV acquires the loan – this practice is extremely dangerous and short term focused (when a Market/Economy is based on an excess level (Supply) of credit) as played out in global terms which manifested into a situation in which the level and quality of the Securitization was diluted, an AAA+ loan was only a AA level type (and it was possibly less than that) that is  which was a dangerous situation indeed. South Africa has the Regulations and the Relevant Acts and Legalities in the Supply and Level of Credit there is the National Credit Act (NCA) and, and also those whom provide advice in a Financial Capacity on behalf on the Financial Brand must be FIAS compliant, there is also the FICA aspect as well, which serve as a means of Custodianship

Currently in S.A – this beautiful country that many of us call home;

1.     The Trade Deficit – but there are internal strategies which are being implemented and developed to influence the situation,
2.     Trade Protectionism – as previous stated we are in a globalized world – to protect an Industry without foresight on increasing productivity – results in artificial prices, and sometimes depending on the industry, the artificial pricing results in black-market trade or bootlegging , which would further erode the economy position,
3.     Inflation sitting at the upper levels off the target range, sometimes it is direct and sometimes it works with multiplier – which ultimately results in the increased pricing of good and services to all, I believe that inflation would remain at this level for some time (well at least until there is a decrease in the Petrol Price into double digits and Electricity, or the Rand appreciates against the Dollar (USD $) – but I doubt that this would be effective as the Exports would decrease which would increase the Trade Deficit)
4.      The Pricing of Input in relation to Outputs – the pricing of Labour in S.A is comparably higher in terms of other emerging nations in the world, which is a concerning as this also factors into the Inflation situation,

What does this mean for S.A?

The Hybrid Vortex has impacted upon us, especially when our major global trading partners where affected, I would love to see more Productivity Based, Easing of Regulation, and Laws towards SME’s make it easier to do business so that more business can get done, Also encouraging investment into South Africa by Local Citizens, and Local Brands, External Citizens, and External Brands (and by Investment I don’t necessary mean “hot money.”) To create an Economy that is valued by Citizens and Businesses alike.

What does it mean for Banks and Investment Brands?

1.     Too develop and build upon the level of trust, and relationships that were impacted upon during the Hybrid Vortex Cycle
2.     Focus on Transparency, Corporate Governance and Accountability
3.     To provide an exceptional great level of service
4.     To be aware of the sentiment and which ultimately influence the reputation of the Brand in both the domestically and the internationally markets respectively,
5.     With some new regulation be implemented makes sense to treat the customers/clients as individuals as opposed to the client/customer being a number.
6.     To just be aware of doing “x” doesn’t just does “x” but it would trigger “a” “b” “k” “x” and “g”

To a create Legacy,
To value Greatness,
To far surpass our own full potential,

Kindest Regards

Kash.KXG

“Aspire to Inspire

Live to Dream
Envisioning the Vision and the Opportunities”