Financial Panic

In 1988 I had a conversation with my father about the possibility of a credit collapse. I had just finished reading several books on financial instruments, and one thing I took from it was our financial system was a house of cards. Business runs on trust. If a panic occurs it can wreck havoc.

During the years of the Great Depression many people grew their own food. Many lived without indoor plumbing. Now many wouldn’t know how to react if they can’t get soy milk from the market and their toilet will not flush.

When I expressed my concerns about a complete collapse of civilization to my father he was reassuring. He was confident, not in the system, but in me. He reminded me I was resourceful and I had skills. He told me he hoped I would never see things get that bad, but if I did he was sure I would “figure something out”.

In the aftermath of Hurricane Ike people worked together to get by without electricity or water or gasoline. As this area starts to rebuild it has been made stronger by the relationships created among neighbors as they helped each other deal with the storms destruction.

As our credit and financial markets suffer this credit crunch, it is worth remembering as a people we are resourceful and we have skills. Whatever happens we will “figure something out”. And we will probably emerge from the other side made stronger by the relationships we form.