The Perfect Storm
Several years ago there was a movie entitled The Perfect Storm. Fishermen searching for a profitable catch made a bunch of bad decisions seeking really big profits catching swordfish. Circumstances combined to engulf them in a storm that was of epic proportions due to the unusual collision of weather patterns. The combination of the bad decisions and highly unusual circumstances sank the fishing boat and all hands were lost.
The Captain of this boat didn’t consider that prudent, conservative evasive navigation action might not make the current voyage a big financial success but they could possibly survive to fish another day.
The current national financial situation has many similarities to the movie. Corporate giants have made overreaching decisions in search of greater and greater profits. Excessive leverage strained the total financial system as did the strain on the fishing boat engine in the movie, when it struggled to overcome forces beyond design expectations.
The storm sank boats that were not prepared. Most of the fleet survived because of skippers who added prudent decision making when facing a seldom seen confluence of warning signs concerning weather.
Every day we hear of another company sinking due to our current financial storm. Be assured that the whole fleet of companies that fuel the United Stated economy is not heading to the Davey Jones locker labeled Chapter 11.
There will be a calming period coming when we can all gather our wits and set up a plan for personal recovery and growth. In the meantime we as individuals and as family units must take individual responsibility to keep our life moving on as even a keel as possible.
It will be individual effort with self interest as the motivation that will bring us through this Perfect Financial Storm.
We can all start with some simple manageable items of conservation.
Turn the heat down 5 degrees and pull out some sweaters to wear. Use the hot water in the morning that is needed for showers and running the dishwasher. Turn the hot water heater off when you leave the house. You don’t need the heater keeping the water hot all day when no one is home. Figure out a carpooling arrangement with neighbors or friends. Forget that you have a credit card with available credit on it. Use every spare dollar to pay down balances on those cards. Use the credit cards only for emergency purchases. Search for favorable credit deals for transferring funds from higher interest cards. Be sure to check the transfer fees involved so that you can correctly assess the deal being offered. Think about establishing a Free Box in your neighborhood for kids clothes and toys. This is a great help for parents with small growing kids.
At work give special effort at your job to help keep your company afloat. This is a critical need for every business. The people who do the work must recognize the importance of their effort. Individual special effort will be a factor in management deciding where cutbacks will be made. Make sure that your efforts weigh in your favor if those hard decisions must be made
At the end of each day take time to forget about it all for a while and as the guys with the motorcycles say; “That’s enough for one day. Let’s just ride.”
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Well, atleast gas prices are reasonable now.