Archive for August, 2009

A Fishy Story To Help You Understand The Financial Crisis

Tuesday, August 25th, 2009

I was never a great fisherman. Yes it is true I caught or helped catch three eight foot plus sharks off the local wharf, have caught some small trout and a red perch on a line, sure I have caught fish in a net but that’s isn’t really fishing is it! ??

Fishing is a game of opportunity. Of Chance. It is true if you have the right equipment and the experience you will stand to catch more fish than the rank novice.

Timing is everything. If the fish are feeding you have a great chance of catching something especially if you can replicate exactly the same type of insect the fish are feeding on.

My expertise was more of the lure and big fat juicy worm type of fishing.

The lure irritates the fish until such a time that either frustration or curiosity overtakes it and the rest is likely to be the end of life for the fish. Worm fishing is great when the water is murky and you simply want to lie back and go to sleep with the line wrapped around your little finger. But chances of sleep are not great because there is always the expectation that you are going to catch a fish. A big fat juicy fish that will taste just great for you and friends and family.

Now For The Crunch Line!!!

We have for the last 5 years; maybe a little longer, been living from a ” river” that has had abundant supplies to satisfy our needs. In the old days you only took what you needed to survive on…but with refrigeration, food gathering took on a whole new meaning…take what you want not just what you need.

We came to rely on the river. …And there was no savings …we just took and consumed.

Well the flood came. We didn’t want it, we didn’t expect it …it just “happened”!!!

It was large, decisive and happened in a flash! (Hence the word Flash Flood!)

It changed the river completely. It may have killed the fat fish we once sought, but if I know a little about fishing …the fish would have been swept to places far away. (And most probably survived).

Chances are the river has changed course, it might have scoured away the banks, the river bottom, taken away the food supply, even the cover that once protected the fish from people like us.

Will it ever return to exactly like it was? No NEVER. Will the fish come back one day? We don’t know.

But What I say next is really, really important.

The river before the flood was free of snags. It allowed casting without the fear of losing gear every time you cast.  You had an even chance of catching a fish on your merits.

What has happened now is that boulders and trees with branches that snag, have invaded your little fishing spot …made it far more difficult with a higher degrees of risk to allow you to catch the fish that you so much want. (And in some cases demand as your right).

And that is where the world sees themselves in the present crisis. And my advice is not to risk ” fishing” in the spot where you were once familiar if it involves risk. You will get snagged.

You can do two things. First options you can find another spot in the river and try your luck. Chances are if the flood were really bad, the river would be full of debris and running at very high river levels. It is probably going to be no better than the flooded snaggy spot you have just left.

The second option is to put away the fishing rod and stay home. Wait until the chance of catching a fish are much higher. That time will come again if you are patient. After all you have the skill and you have the equipment. All you need is the time and place.

Being patient is the most important part of fishing. Being Patient is the most important part of being financially prudent.

It is not about taking risk. Is knowing and doing what Kenny Rogers sang in the Song called the Gambler…

You got to know when to fold it, know when to hold it, know when to walk away, know when to run…

You would be an absolute idiot if you risk gambling your life savings as though you were playing a game of poker, but sadly many do that to their peril.

Know the signs, know the risk, and know when to stop fishing!!!

There will always be another day, another opportunity!!!

Please tell your friends about my website. It is here to give very sound, very wise advice.

Lindsay Walker

© Telling It As it is. Lindsay Walker's Blog. All rights reserved