Dinosaur Speak

I am a strong believer that what we are experiencing in this downturn is unlike anything most of us have seen before. Comparing it to the last two or three downturns can confuse rather than enlighten.

Recently I read a column where a well known columnist suggested this wasn't really that bad a downturn because the "misery index" was much lower than in other downturns. Now as you may recall, the so called "misery index" is the sum of the inflation rate and the unemployment rate. With our current misery index at less than 10 and half of what we had in the downturn of the early 80's, he concluded things really aren't that bad.

So let me get this right. As unemployment rises, but deflation roots and even accelerates, we really will not be in trouble because the misery index will be relatively low???

That is an example of dinosaur speak. Thinking and talking about concepts relevant in another era. Concepts with virtually no relevance to the challenges of today.

Is your counsel to client filled with dinosaur speak?

Is your Restructuring practice plan filled with dinosaur speak?

This downturn is unique. The successful restructuring professionals will be those that see things as they are, as opposed to trying to shoehorn this mess into how they remember past downturns.