This too shall pass (Guest commentary)

Why one HR professional thinks the economy is going to recover sooner
By David Wexler
|Canadian HR Reporter|Last Updated: 04/05/2009

Most people these days are feeling at least a slight bit panicky with regards to financial markets. You may work in the industry and have options and shares that are listing badly. You may be a participant in a defined benefit pension plan that is underfunded or a defined contribution plan that is under-performing. Or you may be someone with financial needs who is being hurt by current economic conditions.

Who could have predicted this? Certainly not mainstream economists. As recently as 10 months ago, many of them were calling for continued robust capital markets and a Canadian dollar that would remain above the American greenback. Certainly not corporate executives, who were investing in expanding their businesses and buying up competitors at (as we now know) unsustainable price-earnings ratio valuations as recently as last autumn.

Too slow to call the now-upon-us recession, many experts are now trying to outdo their peers by forecasting worse and worse scenarios, with newspapers (that long ago figured out that bad news outsells good news on any given day) thoughtfully sharing this, adding to the public’s general unease.