johan horak’s energy flow

Before I read the newspaper head line, "The Recession "Technically Over" - Keep The Belt Tight" my friendly Cafe owner friend, cracked a quick joke as I walked out with my newspaper this morning.

He said in his broken Afrikaans, "die ressie is oor..maar ons het f*k*l oor."

Both statements are true. The recession may be technically over but most people have nothing or very little left. This was also the message from the newspaper article that I will summarise below:

• The recession is technically over but it does not translate into financial prosperity for the average Joe.
• New economical growth is slowly turning up.
• South Africa recorded, at the end of last year, its first recession in 17 years.
• The recession lasted three quarters.
• It changed during the fourth quarter to a growth of 0.9%
• We should be happy because if this growth continue we can expect an annual growth rate of 3.5%
• Job creation show that we are still in a recession. This should continue until the first quarter 2010. South Africa lost nearky a million jobs since 2008.
• The average Joe will continue to pay back debt for a long time
• Approximately a million people are still filing for bankruptcy per year.
• Interest rates will probably increase from mid 2010
• Only three to five years will we see the real turnaround.
• Don't expect a sharp increase in house prices.
• House prices will increase at a rate less than inflation  

The fact that the recession is over ... is a technical issue only.
But you tell the average Joe, that the fact that he has nothing left, is technical!