Wow! What a Ride!

Wow! What a roller coaster ride! And I am not talking about the one at the Mall of America or Six Flags or any other amusement park. You get on those coasters expecting to be scared within an inch of your life. (Personally, I avoid them like the plague. I don't like intentional trauma!) No, the roller coaster I am talking about is the wild ride we have experienced the past several weeks on Wall Street. Up 200 points...then down 300 points. Down 700 points...then up 500 points. And so it see-saws back and forth. It really is enough to make one reach for the Dramamine, doesn't it?



There is no question that the financial world is teetering on the brink of a major collapse. Banks that survived the Great Depression of the 30's have closed their doors during the Great Recession (and some economist have even hesitated to use that term) of 2008. The paper value of the losses experienced in just one day this past week totaled nearly $1 trillion. Can you comprehend that figure? I certainly can't. I wrestle to understand what a million dollars would be like. Shoot, I am not certain I even understand what $10,000 really is all about. A trillion dollars is a lot of money to just vaporize into thin air. And all of us contributed to that loss. (I jokingly told a colleague that, because of what happened this past Monday, I will need to add a couple of extra years before I can retire...perhaps you will need to do the same).



Of course the blame game is raging hot and heavy. Washington politicians blame the corrupt practices on Wall Street. Financial experts blame the apathy toward which Washington had anticipated this collapse. Caught in the middle...wondering just what happened...stands you and me. And we don't know who to blame.



I read an interesting verse from Proverbs this past week that I think really speaks to the cause of the collapse of our financial markets. It is Proverbs 15:27, which states: A greedy man brings trouble to his family, but he who hates bribes will live. I believe the ultimate cause is the greed of man. The dictionary defines greed as: excessive desire for acquiring or having; desire for more than one needs or deserves. Wall Street CEO's just wanted a little more. American investors just wanted a little bit more. Politicians just wanted a little bit more. And it was that focus upon the "little bit more" that led to all types of financial instruments being created that people knew could not withstand the eventual storms that would come. But we were willing to take those risks because we wanted a "little bit more."



What does Solomon say happens to the greedy man? He brings trouble to his family. And we have witnessed the veracity of that statement. Mortgages have failed. Families have lost their homes. Jobs have been lost. Food shelves are stretched to the breaking point. Yes, families are in trouble.



Now there is nothing wrong with getting a return on your investment, or receiving fair compensation for your labor. But, really how many millions is a CEO entitled to? Is an athlete worth mega-millions of dollars a year, just to play basketball or baseball or football for a few months out of the year? Should I expect to receive 15-20% return from my 401k every year? I am not sure I have the answers to these questions. But I believe they are the right questions to ask. I think that if...and that seems like a pretty strong if right now...we are to survive this economic and financial storm, then we will have to change the way we have done business in the past.



I don't know about you, but I am ready to get off the roller coaster and head for the calmer waters of the Lazy River.