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For those of us financial, debt and credit experts it is just so easy to drift to one side and see things with alarm. Every bit of new news seems like yet another bit of bad news that spells doom and gloom for consumers.

The press, media, and yes, maybe even this blog, have run negative economy stories about rising unemployment and falling home sales and maybe that’s a disservice to you.

It is easy to report a trend when one number is different than it was last time but even when the sky is falling or global temperatures are rising, there is still a good side worth looking at.

For example, global warming, yes it sucks, but it could be oh so much worse. Temperatures went up by a degree or two, but not by ten or twenty. Sure it’s a problem that we need to address, and sure awareness is good, but it’s not going to kill me in my lifetime.

We need to save the planet for future generations. That sure seems like a good idea but anyone want to save social security for just the next generation? Dog food doesn’t taste any better for seniors when they are a degree warmer.

I’m not preaching at you, just admitting my own mistake for not turning to see the brighter side of every issue.

While the unemployment rate has gone up and some people have fallen off the unemployment registers, can’t we just for a moment celebrate that 95% of people are employed?

Isn’t it great that more people are employed now than have been at times in the past? I think it is.

Housing sales are down, why yes they are, but you know what, I just closed on my new house yesterday. Yep, I bought a house and homes are still for sale. Sure I think I got a deal on a great house but someone else got a big wad of cash. We’re both smiling.

Foreclosure rates are high, but missiles aren’t falling on our heads. Terrorism and car bombs are bad but new cars are being sold even today in America.

In fact when I return to the U.S. in two weeks I have to go buy a car. Okay, not a new car, I don’t buy new cars, but it’s a car and I’m buying it.

Let’s Put Current Economic News Into Context

Here’s how I see it. Basically a lot of bankers made some really stupid lending decisions based on greed and profit lust. That all exploded in their face and now they don’t trust each other.

This ain’t rocket science here. Banks created this mess and now banks are perpetuating this mess and us average folks are just along for the ride.

The Federal Reserve keeps pumping cash into the market but banks are still too scared to start competitively lending again. Most disturbing is that I think is that banks are trying to keep mortgage and credit card rates up as high as they can so they can recoup more profits between the cheap Fed rate and their current retail rates. Again, to try to make up for their own stupid business decisions.

If the Fed would back loans then lenders would tumble all over themselves to start throwing cheap money into consumers hands and that would drive production and that would improve the economy. Sure it’s a bt more complicated than that but in a nutshell, that’s it.

Why Businesses Fail

From my experience the leading reason that bigger business fails is “good times”. In good time the business grows and spends all sorts of money that it doesn’t really need. I’m guilty of it also.

Twice in my career I have felt that business was so good that I needed to hire an executive assistant to help me. And both times, things crashed afterwards. Sorry Dorothy and Helen. You know I still love you.

Really expensive cubicles are nice, but not necessary, a more prestigious office address is nice, but not necessary, and a lot more staff are nice, but again, not really necessary.

I buy my desks at Staples, I work out of my house or the clients office and I use more contractors than full time staff for special projects.

If Bear Stearns had put more cash in the bank that loaded up on payroll and Manhattan office buildings, there would not have been a $2 JPMorgan takeover story a week ago. They would have had gobs of cash on hand to stem the run they ultimately suffered from.

I know guys that work for Bear Stearns and they live high on the hog. Huge expense accounts and they get paid a nice chunk of change as well.

Good People Get Hurt in Bad Situations

It is unfortunate that good people do get hurt for issues that are completely beyond their control. And it is grossly unfair that financial misery and misfortune land on the heads of workers, but you know what, as long as you are a follower, you aren’t a leader.

As long as you are dependent on a company for a paycheck, you will remain dependent and serve at the will of the market and executives that may not even know your name.

I’ve just gone through a rough patch in one of my businesses. The income was cut for reasons far beyond my control or the control of our paymasters. It is what it is. I even took a massive pay cut to make things better there and I had to ask an employee and friend to take a pay cut as well. The bad news is that he is making less than before but the good news is that he still has a job.

So, next time the sky might be falling maybe you and I should consider that it might be a bit lower but it hasn’t imploded.

I’m reminded of a story about a man that loved and lived with wife wife for 62 years. One morning he awoke to find her dead of natural causes.

The next day he was walking down the road whistling and singing and a neighbor asked him why he was so happy when his wife had just passed away.

“I had 62 wonderful years with Betty that I’m very grateful for. She was a blessing in my life and for thank I’m thankful and happy.”, and then he started walking and whistling again.

Not a bad way to look at life at times. Not a bad way at all.

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Steve

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