The Sky Is Falling…The Sky Is Falling!

        The Sky is falling…the sky is falling…does anyone remember that saying from the children’s story…Chicken Little?  That is how I am feeling today about the hysteria surrounding the money markets.  The more that the warnings go out…the more hysteria that takes place, which then makes the markets more unstable.  The dow is beginning to resemble a roller coaster ride.

          I fell for it…and i am sure there are others who are biting the bullet as far as the panicked feeling.  Everyone is panicking.  Other countries are panicking too.  Because of it…the instability is contagious.  Everyone needs to stop….take a deep breath and let things settle for a few days.  Don’t sell out of panic…don’t buy out of panic…just stop and let things settle into what they are; do what you normally would do.

          I know the need to protect what you have worked for, i know the need to keep your personal finances bubblewrapped to the best of your ability, i know the fear that won’t let you sleep because you may not be able to send your kids to college, retire, or live without too much heartache with your daily spending.  Truth is, most of us needed to tighten our belts and live the way we were taught which is to save up to buy what you want…not overextend yourself with credit and pay as you go.  This is common sense.  It is also common sense to establish some credit…but you must be vigilant and pay it as it comes due…not let credit become the disaster that it has become.

          Businesses, banks, real-estate companies all are in the position that many of us regular people have been in.  The problem is that they can’t operate if their customers can’t pay.  We can’t pay if we don’t have jobs or homes to live in.  It is a vicious cycle.  Everything needs to stabilize long enough for an honest evaluation of where we are at.  At the moment, it is like a lake that has had a boulder fall from the cliffs into the center of the lake; there are ripples that are still rocking the boat floating on the surface.   The shifting that keeps taking place is definately keeping the extent of the damage unclear.

         Putting measures into effect to try to “correct” the market is just going to continue to keep things out of control.  This whole financial crisis is scary as heck…i won’t deny that.  But, we have no accurate way to measure the actual scope of the damage.  There is something to be said for an old adage such as, moderation in all things. 

         The people & companies that put us in this situation are going to have to make better decisions, they have to have consequences for the mistakes that they have made, and they are going to have to put procedures into place to prevent repeating the same mistakes.  The housing markets, the oil companies, the credit card companies and the banking industry all need to take stock of how they have each added to this disaster, and do a review of business 101.  Make more than you spend, lend less than you can afford to lose, and build trust and relationships with your customers!  What a novel idea…we can all learn from those practices.

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Is Anyone Else Feeling A Rising Sense of Dread And Panic?

       With all of the economic shake ups taking place in the United States…i was just wondering…is anyone else feeling a rising, fearful sense of dread and panic?  It has building for the last year and a half with the mortgage crisis, rising costs of food, gasoline, home heating fuels, foreclosures, and job downsizings.  Now on top of all of that…we are seeing the fall of the major financial instutions in our country.

       Some Americans, in portions of our country, have been seeing and feeling the economic sense of dread and panic rising for quite some time.  It started with many job markets closing down or moving out of country (outsourcing) and then we started to see the domino effect from credit card lapses, missed mortgage payments, vehicle repossessions and then, foreclosures of homes that probably never should’ve been financed in the first place.  It has been, and continues to be, a chain reaction.

       The culture of over-indulgence, and pay later, mindset has decided to reveal it’s consequences.  There was no safety net in place to cushion the blow.  Once again in America, our quality of life is being threatened in a way that has the potential to bring our country to it’s knees; similar to the Great Depression that we all studied about in history class as children.  It has gone beyond a wake up call and moved to a place of drastic correction.  How are we going to deal with that as a nation?

      Tonight, President Bush is going to be speaking to the American citizens on the economic crisis that this country faces.  Minutes ago, Sen. John McCain made a statement saying that he is suspending his Presidential campaign to go to Washington to help deal with the historical financial crisis; McCain is calling on Sen. Barack Obama to put the campaign aside for the time being to focus on a bi-partisian solution.  Now is not the time for political game playing.  Anyone who dares go there…will loose the election for sure just because of it.  A commitment must be made to work on the issues that we are facing and stop playing word games and power plays to get attention.

        Time is of the essence at the moment; the impact has the potential to deconstruct the global economy.  Not only are our citizens watching and waiting to find a solution…other countries are doing the same.  Is there any possible way that we can as a nation and as individuals recover from this mess?

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