The past few days have been very exciting as so many interesting things are happening around us. Last week, we heard the news of British XL Leisure Group going to liquidation and this week the headlines are making news of the banking giant Lehman Brothers going to administration. Does this mean UK is in a major recession or is it just me?

It’s not only the UK, but the Spanish airline charter company Futura and Canada’s Zoom Airlines recently declared bankruptcy. Now, can we say the world is in The Age of Turbulence as mentioned by the monetary wizard Alan Greenspan? Is it fair to say the world is going through a major economic crisis?

Apparently, no country wants to accept the fact that they in a recession. But if their industries and businesses keep falling apart, there is definitely some fire making the smoke. If you remember or if you look back, this year we have seen more economic catastrophe than we have experienced in the recent history. We have seen fuel price going up the ceiling because supply cannot meet demand, housing market getting slumped because people can’t pay their mortgages and the world going into a possible food crisis.

With all these things happening around us we thought that the travel and tourism sector will remain on a steady curve as people were still traveling and arrival numbers showed growth. But it looks like now is the time to hit us, with airlines declaring bankruptcy and tour operating companies going to administration. I think this is reflecting to the hotel sector as well, though we haven’t really opened up to announce the financial situations. Perhaps hoteliers are been smart and playing with the books as CEOs and senior management leaves the company with short notice. Recently, a well-known Asian hotel brand announced 15% down in their net profit and coincidentally announced the departure of their long service CEO few months earlier.

Whatever is happening is not good news, that’s what I can say! But, I wonder why is our world going through this major recession and who is responsible for this? I think this is a result of some mishap we have done in the past and definitely not an overnight reaction. Here I am talking about world economy as I feel the crisis we see today is due to some very poor judgments made by bigger economies leading the world markets.

I thought about this and I am still thinking, but my simple answer for now is this: – The world has been climbing the ladder of economic success since 1992 and then we came across the worst tragedy of American lifetime, the 9/11 attack in 2001. This did not do any good to the Americans or the rest of the world, for that matter. The horrific days in people’s lives and the uncertain days of stock markets and various industries are archived in history.The world then was shaky and America was trembling. Maybe this is where things started when the Federal Reserve decided to let the markets function without the normal regulations and start cutting the interest rates so that businesses can progress without major concerns and the economy will grow back to normal.

The point here is that by slashing interest rates and without proper regulations to monitor business activities they have given a “sword to a blind man”. In theory, I would assume that as humans we will be more careful if we are given 1Million Dollars and asked to pay 20% interest, instead of giving the same amount and asked to pay 2% interest without any regulations to monitor where and how we spend the money.

Well, that’s how I see it but if anyone thinks otherwise, I would love a comment.