I’m curious to know your view on the current liquidity crisis and I would appreciate it if you would answer one question.
Do you agree that this is the worst US financial crisis since the Great Depression, and if you do not, then what was the worst US financial crisis since the Great Depression?
I would suspect that the worst financial crisis occurred at the end of WWII. If you look at the national debt with respect to GDP, it was, I believe, 10x worse than now. But, even if there are shocking consequences to the current situation, come and sit in my chair and listen to the hidden stories of money everywhere compared to twenty years ago. People are inheriting money from frugal parents, businesses are creating wealth, deals are being made that are making far more money than when I grew up in the sixties. We were tottering on the brink then and I recall the neighbor running over with a “Invest in silver before its too late!!!” book for my father.
The matter of living has always had a fear factor operating. Thelogically, I could argue that is to drive us to the One who really matters. Financially, I have found that prudence, hard work, settling into a good budget, and just expecting things to be bumpy are more workable ideas than to hold onto the international liquidity crisis.
But, I am astonished, astonished at the amount of money I see in people’s hands and as a CPA I see a lot of hands. There is a certain sloshing going on in the tub, granted. But, it is no worse really than any other time. Recall, great-grandma was very concerned about some bad guys riding out to the ranch when she and the kids were alone. What was that about liquidity?