The Only Thing We Have to Fear Is Fear Itself – and Ghosts
You get the point? People are scared out of their freaking minds, and why? Because we’ve been led to believe that the end is near, that “it’s going to get worse before it gets better” (it is, but people just hear the first part), that nobody is lending, and that your house is worth less (some hear “worthless” and walk away).
It’s all a part of the business cycle. The economy has ups, and it has downs. Unfortunately, when excesses take place, the business cycle fluctuations are always more extreme than they need to be.
Larry Summers, President Obama’s chief economic advisor, had this to say about the current economic atmosphere, and what SMART businesses (are there any left? Of course there are. They just don’t make the news) should do to take advantage of this truly once-in-a-lifetime opportunity – indeed, EVERYTHING is on sale right now. Prudent businesses and individual consumers can make out like bandits right now.
Except it’s all legal (unlike “banditry”).
Summers was asked by a member of the audience what the nation’s business community could do to help speed the recovery.
“What we need today is more optimism and more confidence,” Summers said.
“Those who have sound long-term strategy, who have investments that they want to make, who see productive opportunities, are going to find this a very good moment to make those investments,” he said. “There are a very large number of things that are on sale today. Think about the cost of doing construction today, versus the cost of doing construction two years ago.
“My advice to business leaders is not to foreshorten the horizon at a moment like this.”
Did you read that? This guy is one of the smartest people on the planet and he’s a consummate economist. Folks should heed his advice.
The only things missing from the Obama camp is a task force and a marketing campaign. Economics really is nothing more than “mass psychology.” Right now, the patients (us) are suffering from depression, fear, anxiety…we need to hear that things will get better, sooner rather than later, and that we’ll all come out of this fine.
We WILL come out of this, bigger and better than before. However, many of us don’t believe it. But believe it we must.