Economies rely on a degree of overconfidence. There is a gap between present realities and future expectations without which there would be no enterprise, no investment, no credit, no commerce, and no currency. However, at a certain point, the disconnection between reality and expectation becomes too great, and there is a need for a readjustment. Recession is that readjustment.
The last half of 2008, and now into 2009 has not proven very inspiring on the business, economic, and financial front. With a recession in full swing in numerous countries, government, corporate, and private concerns are looking for a way out of the downturn. A return to economic health will not occur overnight.
The problem is too deep and widespread. It will take a return to sound business fundamentals and doing away with wild and rampant speculation and get-rich-quick-schemes on the markets. If businesses do not get their financial houses in order investors can expect to see corporate bankruptcies increase this year. With unemployment increasing, it is going to be a tough year for many businesses to remain solvent as sales and profits wane.