Careless talk......

Reading the newspapers over the New Year was a fairly dismal experience. For UK business the general feeling is that we are in for a rough ride over the next year. In fact I lost count of the amount of times the "R" word was mentioned.

On both sides of the Atlantic the effect of the slide in property values is expected to start seeping into the real economy.

And then on the business television news this morning the presenter asked a couple of guests whether they thought that we were in danger of talking ourselves into a problem. He was insinuating that it might not be all bad, but that somehow we could let our emotional reaction to all the bad news affect our day to day business decisions.

Duh!

Isn't all business emotional? The fact is that if you don't feel bullish and positive you will start to act more defensively, pull your horns in, tighten your belt and so on. It is this gut feeling that guides many business people. Understanding the prevailing economy, especially the demand from our clients is what keeps us in business.

Confidence is important, but so is paying attention to the marketplace.

Never truer is the old chestnut that the banks will only give you an umbrella when it is sunny. Making sure that you have sufficient facilities in place now, before the storm breaks, is the prudent option. If we are in for a downpour at least you are prepared.