Truth or Consequences – What Now?
October 5, 2008 by Lynn, Clarity Coach
Filed under Money and Meaning, Videos
In the land of the blind, the one-eyed (wo)man is king. Irish Proverb
The 2008 turmoil in our financial markets has been a true “black swan” event. Improbable. Not expected. Life changing.
Anyone not living in a bubble could see a day of reckoning fast approaching, but we were all caught off guard by the swift fierceness of the meltdown.
Life as we know it cannot continue. This is not just about overspending by the government, the banks, or the Wall Street investment banks. This is about greed, short term thinking, bad judgment, and the pervasive self-interest of “what’s in it for me.” Change has to come at a fundamental level. It is Read more
An Economic Pearl Harbor says Warren Buffett
October 3, 2008 by Lynn, Clarity Coach
Filed under Money and Meaning, Videos
“It’s not the return on my money I’m worried about. It’s the return of my money.” Yogi Berra
Who would ever imagine voluntarily investing in an investment that pays only 1/20th of 1%?
Yet that is what happened when $40 billion moved into 7 day Treasury Bills. Almost as bad as putting your cash under the mattress, isn’t it? Fear is running rampant and despite it’s low return, there is a trust factor built into treasuries that at least you will get your money back.
Warren Buffett says he has never seen anything like the current fear and tsunami of financial crisis in his lifetime. When asked if we could be facing another Depression, he said, yes, it is possible. The root cause? Derivatives and false accounting. (Sounds like greed and self-interest to me.) However, Mr. Buffett also has strong confidence in the ability of America to be better off ten years from now than we are today. He is a realist, not a doomsayer. He believes in the “bailout plan”, but also realizes this is not an immediate answer.
He refers to the Reconstruction Finance Corporation which was used during the Great Depression. Here is his interview with PBS journalist, Charlie Rose, about the bailout plan and our country’s future.
It’s time for fundamental change and accountability. It’s time for ethical, strong leadership. It starts with us.
