THE SILENT BANG
Posted by Ella Moss on August 16, 2010
For more than 10 years, ever since I’ve got ephemeries for the 21st century I was expecting something huge happening around 8/1/2010. In fact, I’ve marked that day as a possible start of the World War III.
When the financial crisis was officially announced, and I took a look at the charts for the U.S., I figured the time period around 8/1/2010 would mark a true low of that crisis.
I prayed to my avatar guru, yet still waited to see what would occur.
Well, apparently, nothing loud and big happened in the world except for hustoric flood in Packistan.
Yet something was happening: I have not received a single order since the week prior to August 1.
Of course, for a while, I thought it was my bad luck – just like at the end of 2007.
You, my reader, probably, had no slightest idea there is a financial crisis going on in the fall of 2007. Most of the people had no clue until the summer of 2008.
Well, people in legal industry had no idea either. Everyone was blaming their personal bad luck just like I did, until we were told that everyone is in the hole.
Legal industry suffered the blows before everyone else did, because the ultimate Payer in all civil litigations is the insurance industry. In this financial crisis, it is the insurance industry that suffered well before anyone else did, so the first people to fall off the ladder were the legal professionals and, of course, everyone who offers their services to them – like me.
When my mind finally drew this parallel, I’ve decided to check on the news specifically pertaining to insurance and legal industries, and this is what I found:
In June, 3,600 attorneys were laid off in NYC alone. In July, 800 more there were let go.
These are not front page news (yet). I found them in one little noticed article in some financial news on insurance industry.
But it told me more than hours of CNN watching. It told me what the article did not mention: the insurance industry is once again in the red ink, and it curtailing all the litigation, preferring to settle instead.
Why would it be in troubles now? Well, quite possible, the commercial real estate is defaulting now – that is something that economists were expecting for awhile now.
If we are watching repeat of 2008 problems, in about 6 – 8 months from now the financial industry would be buckling, and we may finally hear about the second coming of financial crisis on CNN.
So astrology, once again, proved itself right, but this big bang is truly silent – for now, of course.
joemad said
a bright bulb in a not so well lit society… I have had the same thoughts since 9/11, that the economic crisis was going to go down like this, and it has throughout the decade.
Common sense would dictate that too much money is in the hands of the WWII generation ( who are still with us) as well as the baby boomers, even with the real estate debacle, as well as pension and 401K woes that are directly linked to the negotiable securities markets.
With this said, financial independence is the key to a dynamic society that hopes to produce individuals to maintain the progress this country has made since WWII. But guess what folks, a whole lot of other people out there in the world have the same hopes and dreams as the ambitious American citizens.
Succinctly, this situation will take some time to shake out and a select few have already voiced a similar opinion as I do now… the people in the USA under age 70 are going to still see financial hard times more severe than any other period in their lifetime.
Ella Moss said
Sadly, I agree with you
ditchtheboss said
I think it all starts at school. Our society is made up of individuals who make financial decisions on a daily basis. If those decisions are based on truly tested financial basis the individuals will prosper and as a society so will all of us.
I believe that our education system should teach children how to manage their finances, the meaning of real assets, cash flow and all of the other financial basics that we should all know. Our society lacks real financial education which is evidenced by the financial crises. Just see how many people are loosing their houses and everything else.
Of course there is no financial education that can protect us from selfish and greedy individuals that only want more and more without thinking about the society as a whole.
Ella Moss said
That’s the thing: “there is no financial education that can protect us from selfish and greedy individuals that only want more and more without thinking about the society as a whole”.
This crisis was brought on by greed on all sides of the isle.
Greedy bankers wanted to sell more loans. Greedy buyers did not bother to read the small print, because they wanted to believe that they can enrich themselves flipping houses like burgers.
Greedy republicans wanted deregulate the economy to fill their pockets, and stupid democrats believed that making mortgages more available to people with low income would somehow make for more prosperous nation.
Greed makes people stupid (that’s how Madoffs of this world get to be so successful)
Louis said
Usually I do not post on blogs, but I would like to say that this article really forced me to do so! Thanks, really nice article.