come together to recognise that the Country is seriously affected by the recession which may well be the worst since the Great Depression.

There were early recession warnings from the Premier, Sir John Swan, and by this newspaper of what the recession might do to Bermuda. These warnings were weakened in the public's mind by denials from the Opposition PLP and by statements from the leadership of the Bermuda Industrial Union that talk of a recession was somehow a Government plot. Politically inspired claims from Washington that there was no recession were no help and President George Bush is now paying a high price for facing the recession too late. There were also those who thought that Bermuda would ride out a US recession well because it always had in the past with visitors deciding to come to "closer'' Bermuda rather than take more elaborate trips abroad in recessionary times. This newspaper warned with very good reasons that Bermuda was no longer inflation proof, but very few people listened. If so many public figures had not misjudged the recession, the people might have faced up to reality and sought solutions beneficial to the entire Country a good deal earlier. It was not to be.

The one saving grace was that Bermuda's Government understood the recession signs much better than Washington did and got its pre-recessionm budgets right, thus placing Bermuda in a much better position than it might have been to hunker down and hold on in bad times. The Budget moves were not popular but they were correct for Bermuda. Without them, we would now be much the poorer.

Despite a few hopeful signs in the US economy, we do not think this recession is anywhere near over. It may be that the good signs are being generated for the benefit of a US election year. We fear this could be just a temporary upturn before a more severe downturn. We do not think America can grapple in any meaningful way with its economic problems until after the November election. The German economy is now weak because of the recession and because of the strain of assimilating East Germany into a unified Germany. The Japanese economy is now displaying some very disturbing problems and, if that goes sour, it will impact heavily on this part of the world. It's not over yet by a long-shot.

Sometimes it takes tough times to make a country face reality. Bermudians are beginning to talk about solutions at all levels and to look at the problems of tourism, the nurturing of international business and to seek industries for the future. They are also facing the fact that the good life of the 1970s and 1980s had a high price. We think Bermuda can and will come out stronger, leaner and more efficient and, along the way, will learn from this recession that we have to earn the good life.