Bear Hug (2007) Digital Arts by Sesha

The financial crisis the world is facing at present is a crisis triggered by a liquidity crisis in banking system and caused by the overvaluation of assets. Simply put GREED. It has resulted in the collapse of large financial institutions, the bail out of banks by national governments and downturns in stock markets around the world. In many areas, the housing market has also suffered, resulting in numerous evictions, foreclosures and prolonged vacancies. It is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It contributed to the failure of key businesses, declines in consumer wealth estimated in the trillions of U.S. dollars while significant risks remain for the world economy over the 2010–2011 periods.

The name "bear hug" reflects the persuasiveness of the offering company's overly generous offer to the target company. This is nothing but ‘gobbling’ up a good company in dire financial straits. The target company's management is essentially forced to accept such a generous offer because it is legally obligated to look out for the best interests of its shareholders. Now it looks as though the many countries are collapsing, let alone a few companies. The day is not far off when the countries get gobbled up.

A bear market tends to be accompanied by widespread pessimism. Investors anticipating further losses are motivated to sell, with negative sentiment feeding on itself in a vicious circle. But you never know. People have made fortunes in a bear hug phase and have built empires amidst ruins as shown in this painting
Enjoy
Seshadri

Related themes

CityscapeUrbanPastoralFinanceModern