Things I've Noticed

Thoughts on the Financial Crisis One Year Later

It has been about a year since our world underwent a huge financial crisis and it has been a stressful yet valuable time. We’ve learned what makes people tick, how greedy people can be, how stupid they can be, and how we sometimes have to help people who didn’t necessarily deserve it for the sake of the rest of us. What’s ironic is that people who spent a lot or too much on “stuff” ended up often doing better. Stuff, (except real estate), didn’t really go down in value. And then people who bought this “stuff” on credit and went bankrupt were able to keep it for free. On the other hand, those of us who did “the right thing” and invested like good soldiers, were hit hard. Those who possessed things still had them, while values of our investments, (just ink on paper), vanished. It was very disheartening. Some of these losses have been recovered, but not fully. And many of us panicked by making stupid financial moves in case things would never be the same again. People who bought more than they could afford will be forgiven of some of their debt. Those who foreclose or file for bankruptcy received a discount at the expense of the government and the banks, (many of whom deserve it). But we had to help them out or we would have gone into a deeper crisis. Few people want to buy a house next to a foreclosed house, and they certainly won’t pay as much for one if they do. It’s also funny how the Chinese finance so much of our debt to buy all the stuff they manufacture for us, but if we never pay back our obligations, we’ll have the last laugh, (and the cheap stuff we bought from their factories).

Job losses have been staggering as employees have been treated more like numbers than at any other time in history. Apparently, some companies think work can get done without people. Well, at least they think they can squeeze every last drop of efficiency out of those who are still employed. When the market turns around and the pendulum swings the other way, employees will take advantage of the situation. Turnabout is fair play.

As far as consumption goes, this economic crisis has taught me that although it’s good to invest, remember to also buy the things you can cherish or hold onto, whether they are experiences or objects that mean a lot to you. And diversify like crazy, not just in the U.S., not just in stocks and bonds, but in commodities, foreign companies and other areas you might not have thought of before. And don’t get greedy. Nothing goes up forever so cash in as you need to as you get older. Nothing goes up forever! What’s great about saving money when times are good is that it allows you to buy and spend during economic downturns when the deals are great and nobody else is buying.

It appears that we’ve avoided a depression, (and I don’t think we’re out of the woods yet), but we should never forget the lessons we can take away from this last year of economic mayhem.

+ Atul

Compliments and Criticism for Compliments

The compliment is the most controversial positive social phenomena in existence.  Compliments are often obvious and direct, but they can sometimes be hidden or subtle.  The basic idea to is tell somebody that you like or appreciate something about them or something they did.  If we were simple creatures, that would be the end of it.  But there's so much more that we must consider.  First of all is the compliment appropriate and does it fit the situation?  You don't want to tell an executive of the opposite sex that they look hot in that suit even if you feel that way.  With respect to courtship, compliments must be used judiciously so as not to appear desperate or overly doting.  You also don't want to give anybody a big head.

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And then there is the reciprocation factor.  Many people expect compliments in return, (even if there is nothing to compliment).  I've also come across people that give compliments freely because they are fishing for compliments for themselves.  We all like to be appreciated, so compliments make us feel good and can be motivating.  But some people take it too far, needing them as a self-esteem crutch.  Others use compliments to establish position over somebody else.  A compliment can indirectly indicate, "I'm good enough to critique you."  Or, "I'm so secure that I can give compliments and I don't need them".  In fact, I often make fun of myself as proof."  Compliments are complicated.

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Maybe this partially explains why our world is so negative.  Criticisms are sometimes easier and usually more appropriate.  They often convey more useful information as well.  If something is nice, a compliment won't Constructive criticism often lets the other person know how they can improve.  And a criticism also shows a different kind of authority over the receiver.

Some people never give compliments.  Perhaps they feel it, but don't say it and they take for granted what they already have.  Or they want others to perpetually try to get a compliment from them.  Why change the status quo if the status quo is good and compliments might cause unwanted change?

Receiving compliments is not always easy either.  What does one say?  I get a little bashful when somebody compliments me.  Sometimes I don't feel worthy of the compliment.  At other times I do feel deserving, but I feel obligated to reciprocate.  And than I have to be sure that any compliment I give sounds genuine, and hopefully is genuine.

Compliments are nice, but they aren't all good.  They need to be brought back down to earth.  That's why I wrote this post.

+ Atul