Monday, March 9, 2009
Where is the bottom?
My father always seemed to have a quick comeback for any of my fears as a child. I remember in a fishing boat on a huge lake and asking how deep the water was. His reply was, "It doesn't matter once it is over your head."
I have been feeling a lot like that nervous kid in the small boat with the entire financial crisis, but the bottomline (or bottom) is way over my head. I am treading water in the small end of the pool. But today Warren Buffett who swims with the big guys says the economy fell off a cliff. And people are changing their buying habits like he did not anticipate. We are all in the shallow end treading water.
But Mr. Buffett remains calm. So did the band that played on the decks of the sinking Titanic. According to Buffett fear is dominating Americans' behavior and the economy has basically followed the worst-case scenario because of that fear. He didn't say it in this article I read but we don't need naysayers like Rush Limbaugh or even the congressional Republicans fighting against the direction that our President is rowing.
Buffett remains optimistic and says now is the time that the nation's leaders need to support President Obama's recovery plan, which I believe he had a hand in drafting. I learned today that my small community will get some of those first "shovel ready project" funds which will bring $25 million in infrastructure development to the area. Half of that will be labor costs which translates to jobs. And business for restaurants and landlords and shops.
I am still treading water but it is possible I see a dim light of a possible ship of rescue on the horizon. I don't want to hear that it is not going to come or that someone on national radio actually hopes it doesn't.