I'm sitting here a few days before Easter, biting the head off of a marshmallow Peep, thinking of Chicken Little and our current financial situation, waiting for the sky to fall...or not.
As we all know, the sky hasn't fallen yet. The fiscal cliff can was kicked down the road. Sequestration happened and life amazingly went on. The stock bubble keeps inflating. Real estate inventories are tightening. Greece is still in the Eurozone, the rest of the 'zone PIGS (Portugal, Italy, Greece and Spain) are wallowing, and Germany is left to pour on the slop. Sebelius admitted this week that Obamacare will raise insurance premiums. The latest debt ceiling crisis has been averted until May, and when that comes we wouldn't be fools for betting on another can-kick to carry us through August. And there's a new securitization kid on the block, this one the REO-to-rental scheme.
If all of this hurts your head, you're not alone. There's one common element linking all of these events together. What is it? Simple. LIES.
Seems we are dealing with a bunch of pathological liars running the world. Sure, they'll come clean once in a while when it suits their purpose (Sebelius had to come clean because insurers are ready to announce 2014 premium increases), but otherwise lying is a comfortable way to operate (REO-to-rental securitization - really?).
How does one deal with a pathological liar? If it's a spouse, get a divorce. If it's a co-worker or neighbor, avoid them. If it's a friend or lover, stop being a pathetic codependent and dump them. But what if it's your bank? Your government? Your broker? Can you avoid, divorce or dump these ingrained entities?
Sure you can, up to a point. Self-direct your investments into things you understand. Take the time to learn about Obamacare and position yourself for the best outcome. Employ a good CPA and take the steps to keep every dime in your pocket that you legally can.
There's one common element linking all of these events together. What is it? EDUCATION. Don't let it hurt your head.
Like Oprah tells us, when dealing with pathological liars it's up to you to 'take your power.' Or like the Who said, "We Won't Get Fooled Again." Get your risk management in place for whatever lies ahead.
And to all the big fat liars out there, just remember. Karma's a bitch.