Worldwide Success

We are in the middle of the worst financial crisis since the Great Depression.  The events of the last few days have required drastic measures by the US Government in order to prevent a total meltdown of the financial system.  The implications of the current situation will be unfolded in the days and months ahead.  The future is unknown and the prognosis is uncertain.

To give you a sense of the seriousness of the current problem, the Treasury Secretary Henry Paulson, and the Chairman of the Federal Reserve Bank, Ben Bernanke went to Capitol Hill on an emergency visit to explain the situation to Congress.  What they had to say was outright frightening.  According to one of the Senators who were present, they were told that: 

“We’re literally maybe days from a complete meltdown of the financial system, with all the implications here at home and globally.”

Another senator put it this way:

“History was sort of hanging over it, like this was a moment.”

The result of these discussions was a proposed $700 billion package to bail the financial institutions whose irresponsible behavior led to the current crisis.  These firms, led by uncontrolled greed and a deregulated environment with no checks and balances, lent too much money to people who had no means to repay their sub-prime mortgages.  Consequently, taxpayers may be stuck with the bill and the US will have to pay the economic consequences of a $11.3 trillion debt.

All of this bad news is making people nervous.  But successful people deal with a crisis like this in a calm, rational manner.  Here are some important success tips for dealing with this crisis:

Don’t Panic

The worst thing you can do in a time of crisis is to panic.  Try to stay calm and make rational decisions.  Don’t let your emotions drive your behavior.  If all the turbulence being reported in the media makes you too nervous, take a break from it.  Shut down the TV and the computer and don’t read the papers for a while.  This may help you cope better as you don’t get caught up in the ups and downs of this crisis.

Think Long-Term

When the world as you know it seems to be coming to an end, it is important to take a long-term perspective.  It is going to be bumpy in the next few days, weeks and even months.  But in a few years, it is very likely that this too shall pass.  We will look back and think that this was a difficult time, but also an opportune time.

Look for Opportunities 

Even in difficult times like this there are always opportunities.  Successful people prepare themselves so that when these opportunities appear they are ready to act.  Real Estate has long been a good investment, and the prices of homes have come down significantly.  Are there opportunities out there to invest in real estate?  Stock markets are depressed.  Is this an opportunity to buy stocks at bargain prices?

No one knows where the current events will lead.  Unless there is a total financial Armageddon – and we pray that the powers that be will do the right thing to avoid that - we will likely come out of this crisis stronger.  This maybe just the cleaning up required so that we can get back on a growth path.  And once the current problems are addressed, there is only one way to go: up!  

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