Momentum takes a long time to wind down.
Let’s face it, the PLP essentially broke Bermuda’s momentum starting years ago. The party was able to continue for years while Bermuda’s long trends of stability were slowly eroded. Momentum ground to a halt, and then the pain started to accelerate.
We are now seeing the hammers start to hit, the latest blow being the rating downgrades of the local banks.
It’s shocking to read their analysis that 15% of local loans are non performing. And even worse to hear their predictions that bank loan losses may double to close to $500 million over the next two years, along with a steep increase in unemployment.
We have a credible and responsible government now in the OBA. But unfortunately it will take sustained years of effort to turn around Bermuda’s negative momentum before we can start to grow again.