Just when I thought last week’s news with Fannie Mae and Freddie Mac was groundbreaking, the last week has brought us unprecendented news in the form of shocking bankruptcies (Lehman Brothers), takeovers (Bank of America/Merrill Lynch) and bailouts (AIG). It’s a new form of the memorable line from the Wizard of Oz “Lions and Tigers and Bears Oh My!”. Or perhaps Chicken Little had a little truth in him; well, at least if you watch the recordbreaking plummeting of the stock markets.

As we try to regain our stomachs much like after a double ride on the tilt-a-whirl, so many are wondering “What’s Next for the US Economy?”. I am one of them. Are we headed toward one big government run bank? Will the government start to own significant pieces of all kinds of financial institutions because they can’t seem to run themselves soundly? Are we headed for a new brand of socialism? Who can tell…

Why so many of us wonder, one of our candidates in this historic election does not share the uncertainty of the majority of Americans. Pam’s House Blend captures this quotable:

And the Dow dropped 450 points today — $700 billion in investments vanished. ABC pummeled John “The fundamentals of the American economy are strong…” McCain:

Obama weighed in as well and McCain’s counter-comments once again totally contradict what he just said.

Obama called it “the most serious financial crisis since the Great Depression.” McCain declared in a new TV ad that “our economy is in crisis” and that only he and his running mate, Alaska Gov. Sarah Palin, could fix it. McCain also told voters in Jacksonville, Fla., “The fundamentals of our economy are strong.”

Ah- so we are fundamentally in a crisis? Right on John! All of my personal sarcasm aside, we’re dealing with historic and serious financial business here. At a time when the job market is already dicey with people losing jobs regularly, so many find themselves vascillating between making a real career for themselves and simply spending each day with their tail between their legs gripped with fear that the bottom could fallout at any moment. Unfortunately that is no way to live a fulfilling life. You create your own reality and it is up to you to put excuses about the economy, money, and other random things aside and focus on what matters most. Pam Slim who is knee deep in writing a book on how to help cubicle dwellers make the leap to entrepreneurship had this to say:

Yes, things feel quite bleak in the market today.

But, I would argue, if you are sitting back with your head between your knees gripping your corporate job like a favorite teddy bear, you are putting yourself at risk.

I learned from my martial art days that the safest thing to do when under attack is to keep your eyes wide open, ground yourself, leverage your strengths and let curiosity, not fear, be the emotion your opponent sees in your eyes.

Like in any crisis or economic downturn, some people are going to thrive and grow despite the chaos. These are the people who are not afraid to try new things, work on side projects, network like crazy outside of their day jobs, and maintain a balanced and positive outlook on life.

The unfortunate part of all this is that all these bailouts being made in big sums using taxpayers money isn’t doing a damn thing to stem the stock slump and who knows what the long term impact of these massive expenditures will be.

Yet, perhaps this is the chaos before the truly creative solutions show themselves. Maybe the shakeup the economy really needs to get back to fundamentals. The Baglady had this to say on the matter:

First of all, I think most of us have had the experience of eating something horribly uncouth and falling ill. What usually happens is a bit of a stomach ache, and then full blown diarrhea, but once the last bit of toxin is out of your body you start to feel better. I think the financial markets is basically in the middle of a cathartic bowel movement right now. As many commentators have said, the debt and mortgage backed securities were “toxic” and these securities poisoned many firms and it is only natural that we’re seeing death and destruction. As a result, the more prudent firms are surviving and becoming stronger. For example, Bank of America has snapped up Countrywide and Merrill in the midst of this, and their position as a financial services company has been strengthened.

It’s not often that you get to use the phrase bowel movement and financial markets in the same sentence, but I say – seize the moment!

What are your thoughts on the matter? Do the big stock market plummets have you nervous? Are you changing your spending, investing, or financial institution choices as a result of the recent chain of events? Do you grip your corporate job like a faux security blanket or are you out there creating opportunities for yourself regardless? Please share in the comments…


Paula Gregorowicz, owner of The Paula G. Company, works with women who are ready to create their lives and businesses in a way that fits who they are rather than how they were told they “should”. Get the free 12 part eCourse “How to Be Comfortable in Your Own Skin” http://www.coaching4lesbians.com and start taking charge of your own success.