Global Recession - Malaysia in Denial

It's funny when an anticipated event will still caught people by suprise if it did really happened. That's what happened when the US faced an economic meltdown eventhough pundits have warned on this as early as 2006. What the global community was caught off guard was the severity of the recession. Many economists predict the recession will be as worse as the 1930's depression. Please note that the 1930's depression has led to world war two. 

A recession can be defined as a significant decline in economic activity spread across the economy and last more than a few months or by technical terms two quarters of the year. Recession impacts the real GDP, real income, employment, and industrial production. A sustained recession may led to an era of depression. 

With the global financial crisis looming, it is suprised when the top honchos that led the financial matters in this country are saying that we will not be affected as much as the other countries. This statement reminded me about a quote Harry Truman once said about recession 'Recession is when a neighbour losses his job. Depression is when you lose yours.' Malaysia has not yet felt the full brutal effect of the global wave of recession and therefore we are still in denial. The wave will reach our shores next year and we have to be prepared for it as it can be worse than we have ever encounter before.