There is a scene in the movie Jurassic Park where skeptical scientists are about to take their first ride through the dinosaur-inhabited theme park. Back in the control room, the park's skeptical chief engineer (played by Samuel L. Jackson) watches events unfold on a monitor, leans back in his chair and mutters under his breath, "Hold on to your butts."
A similar sentiment is expressed in five Foreign Policy essays by economists who correctly predicted the current global financial meltdown. They warn us that "The Worst is Yet to Come" (the title of the collection) and that we had better buckle up for a long, rough ride.
What can we expect? In the U.S., a recession for at least the next 24 months, maybe longer. This in turn will have a ripple effect that may drive the global economy into a downward spiral of recession that will be the worst in 75 years. Because of the complex interweaving of the global economy, the economists predict that no country will escape unscathed.
We are starting to see the effects of economic freefall here in the U.S. Normally, I receive maybe one unsolicited resume a month from educators fishing for an adjunct teaching position at Marylhurst University. But starting around Thanksgiving, I've been receiving on average, one inquiry a day. Even the students applying to the business degree programs, which usually include a small share of career-changers and right-sizers, has grown to include some pretty impressively credentialed professionals looking to reposition themselves for a changing and increasingly competitive job market.
So is there a light at the end of the tunnel? Even the experts can’t answer that with certainty. According to the five economists, it is going to take a complex, internationally coordinated, unorthodox approach. Needless to say, it is not going to be easy. David M. Smick, editor of The International Economy magazine and one of the five experts cited in the article, suggests that the potential solution lies in the untapped financial reserves being held in money market funds and other places. According to Smick, “It’s simply sitting on the sidelines, including $6 trillion in global money market funds alone.”
The world’s leaders, including one newly elected U.S. President, have a huge task ahead of them. If we reframe the challenge in a more positive light, we could call this a terrific opportunity to excel. We wish them Godspeed. In the meantime, hold on to your butts.
