The James Dicks Blog

After reflecting on the deaths of three of our nation’s largest talents, Ed McMahon, Farrah Fawcett, and Michael Jackson, it is clear that we, the American public, place a lot of value on our Hollywood icons.  They are the royalty of our society and, right or wrong, it’s always a sad event to see them go.  It just so happened that these three in particular were huge symbols of U.S. society and played an enormous part in the lives of almost every American; it has been a very sad week indeed.  Suddenly, three of the seminal contributors to pop culture of the 60’s, 70s and 80s are gone.

Theses three individuals were only human but many of us placed a high value on what they did, how they looked and simply the personas and societal changes they represented.  I’m sure you remember, “Heeere’s Johnny,” or Michael Jackson’s white glove and “moonwalk.”  And I know that back in the 1970s, many of you pasted that Farrah Fawcett poster on your bedroom wall. 

I’m not aware if any of you actually knew them personally – I did not.  I knew them only from their press releases, television programs or their music just like the rest of the American masses.  But it was almost as if we all, in fact, knew each one of them intimately. Am I right?  Each of them represented happier times in our lives; times when we were younger and probably had fewer concerns and worries. Maybe we were even better off financially during their heydays but one thing is for sure, the thoughts we had of these three extraordinary people almost certainly made us happy this week but also made us sad when we unexpectedly remembered they are gone forever. 

The human “icons” that society chooses offer us a personal compass that guides the daily course of our existence both in good times and in bad times.  But especially in bad times; it makes us forget our troubles, if even for a moment.  During the Great Depression of the1930s, people would gather around the radio to listen to their favorite singer or one of their western heroes live an existence they couldn’t.  The game Monopoly was developed during that period of time and gave the people “money” to wheel and deal with; while remembering better times and forgetting what they were living through at that particular moment. I guess these unique people and the pop culture they create are distractions that allow us to carry on with our daily lives.  A way for us to be happy and content because our thoughts are diverted watching them perform; if even for a moment.

Who hasn’t imagined themselves as one of these “stars,” possessing lots of money and fame?  But you must stop for a second and remember who you are and what your personal value system is based upon.  Most of these icons can’t do the same things you and I do; not even the simplest of things.  Michael Jackson, for instance, couldn’t possibly go out in public for the fear of being mobbed.  Imagine a life of not even being able to go down to the grocery store when you needed something.  His world made him a prisoner in our world.  Money and fame seemed to degrade his life while enriching ours. 

Michael Levine, who was once Michael Jackson’s publicist, told the press at the announcement of Jackson’s death that he wasn’t surprised.  His exact comment was, “Michael has been on an impossibly difficult and often self-destructive journey for years. His talent was unquestionable but so too was his discomfort with the norms of the world. A human simply can not withstand this level of prolonged stress.” 

We just have no idea what these unique individuals lived through for what they ultimately achieved.  Ed McMahon had major financial difficulties during the last years of his life and Farrah Fawcett’s son is currently in prison and was not able to be there when his mother died.  Very sad stories indeed.

No matter who you are or what you do, the choices you make in this world affect you and those around you.  Maybe not to the extreme of Michael Jackson, Farrah Fawcett, or Ed McMahon but your personal value system is the most important intrinsic possession you have to build a suitable life.  We hope there is some success involved in the choices you make but, as we’ve seen this week, the definition of success can vary with the person. And as Bob Hope (another one of our legendary icons) used to say – Thanks for the Memory. 

JamesDicks General crisis, Cultural Icons, Ed McMahon, Farrah Fawcett, james dicks, Michael Jackson, pop culture, premieretrade

You constantly hear the comparisons of today’s tough times to those hideous economic events during the 1930’s Great Depression.  Each day brings more skepticism on my part as I stand in amazement at what is happening today and what happened then (as far as I’ve been told). 

First, although the unemployment rate is close to ten percent today, during the Depression the percentage of the population that was out of work in the United States rose to 25 percent of the workforce at its highest level. This number translated to 15 million Americans being without work in the Depression era. There are far fewer Americans out of work today and that also represents a smaller portion of a much larger 21^st Century workforce which translates to about a 9.4 percent unemployment rate. That, my friend, is quite a difference.  There are also a number of differences as they pertain to the current governmental structure and control today that makes a huge difference between the two economic predicaments. 

But there are a few similarities to the two events too; both were preceded by credit bubbles.  In the 1920’s, we saw the The Roaring Twenties – a period of social, artistic and cultural energy that captured the nation’s hearts and minds – as well as their pocketbooks!  And most recently we created the tech bubble, the housing bubble, and an easy credit bubble that all had a definite influence on what is happening to the global economy today.  Other similarities include governmental use of stimulus packages in both events as well as government interventionist policies; like a ban on short selling both today and then.  That’s about where it ends. 

Recent times have created a global population that generally does not know how to do without.  Since the end of World War II, the American population has been growing beyond its means, while government social programs have been bleeding the nation’s coffers.  The two countries that were defeated in World War II, Germany and Japan, have been doing better than the rest.  The world rebuilt those countries and their innate industriousness has allowed them to expand economically beyond anyone’s wildest imaginations.  In today’s world, all that appears to be over (or at least drastically slowed down) and while we hear about the possibility of an economic turn around at the end of this year, it will definitely be weak and perhaps short-lived.  Some of the world’s preeminent economists are now saying that they now believe massive inflation is on the horizon. 

Another major difference between then and now was the non-existence of deposit insurance at the banks during the 1930’s era depression which makes today’s situation completely different. The U.S. government has assured the value of all U.S. deposits — even those that are over the recently recognized $250,000 limit.  So, because of this important change, no depositor will, theoretically, lose their savings, and none of the VERY large commercial banks will fail.

The current downturn is not expected to result in the double-digit inflation, unemployment or interest rates that crippled the U.S. economy back in the 1970s and early 1980s during the Carter Administration. As bad as the economy appears today, we have experienced much worse.  And remember, our economy not only survived but it flourished in a big way. There is no question it will do so again. I truly believe that.

I’ve watched documentaries about the 1930’s Great Depression and remember seeing thousands of people standing in ‘bread lines” in order to eat.  But just last week, I saw people standing in lines to buy the new iPhone 3G(S).  That picture comparison hit me hard.  A recent report said that 16 percent of teenagers and 30 percent of business people would likely buy the new iPhone model and by Friday night, the shelves were empty.  I have to believe that things just aren’t as bad as the media is trying to portray.  Let me repeat – there is no question that the hard times we face today will improve.  They always have and always will.  I truly believe that. 

JamesDicks General business, constitutional rights, credit cards, crisis, deficit, economy, expenses, financial growth, financial responsibility, government, Great Depression, james dicks, job, market crash, Obama, personal finance, saving money, stimulus, stock market, unemployed

I guess it depends on how you look at it and who you are.  There is no doubt that many of the world’s working class feel like they have hit rock bottom – no job opportunities, continued likelihood of foreclosures, rising oil prices at the pump and a mailbox full of bills.  Then there are others, the influencers, who observe and control the global economy and hope that a bottom will soon be reached so that growth can begin and our situations just might get back to some kind of normal.

We have recently seen a number of economic reports that portray a slowing of the misery the economy has been passing along to all of us and that is a very good thing – if it’s true.  We now know that the past eight years of dramatic growth in our economy was caused by a credit bubble.  Easy credit, mainly from home equity, fueled a consumption boom which, in turn, also created a stock market boom.  The last eight years of growth, like the dot com bubble bust, was entirely make-believe.   Not until we return to 2001 values for both the housing and stock markets, will the global economy hit bottom and be able to begin a solid and believable recovery.  I personally think we’re almost there. 

Home prices in many areas of the country have lost very large percentages of their value leaving owners, in many cases, without a dime in equity but still consumers are starting to show some early signs of assurance, if even just a little.  For instance, the most recent University of Michigan consumer sentiment report showed that confidence increased to 69 from 68.7 in May.  The report said the slight growth in the confidence level was due to slowing job losses, new reports that showed housing and manufacturing stabilizing, and belief that the Obama administration’s fiscal stimulus just might help encourage consumer demand.

A “psychological” bottom will be seen when positive news begins to replace the negative news we grown accustomed to hearing every day.  We all need to hope and pray that this bottoming trend continues, barring anything in the news from changing the direction of the recent improvements in the global economic situation.  Remember what happened after the attacks of 9/11?  There’s plenty of “bad” stuff going on around the world today and let’s pray that mankind is smarter than that – but you and I know the distinct and disturbing answer to that question. 

Since economic numbers (whether from the government or corporate America) compare themselves to the same period in the year ago period, good news probably won’t start hitting the street until the end of this year; more than a year after the stock market collapse of September 2008.  And if the unemployment and weak home prices persist, that will more than likely keep us all apprehensive and it will become less probable that we will decide to get back out there and spend, at least for the rest of the year. 

Americans must start to center on the country’s economic growth rather than their personal situations or what we hear from the national media.  Once that happens we will all be more likely to pull out our wallets which will create some needed economic growth, well-being and, ultimately, global recovery. All we can do is hope the best and look for the bottom.  Remember, we’re all in this together. 

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World history has shown us that many times when the norm of a particular culture drastically changes, the shape of national thoughts, mores, and governmental structures have also changed.  We just could be on the ground floor of one of these national transformations right now. 

Today our “American Dream” is at risk in every neighborhood from coast-to-coast.  It’s not just a newspaper headline anymore, it’s actually happening to us.  I have seen many communities lose their sense of identity as families watch other families they have known for years suffer foreclosure on their homes.  Vacant homes are not what we ever imagined the “American Dream” to be; it’s not how we thought this story would end.  We, as Americans, have always worked hard to obtain this “dream” but now the unemployment rate has hit 9.4 percent and so many qualified and dedicated individuals are out of work.  The “dream” seems to be slipping away from us and there’s not a thing we can do about it. 

We, the people of a “former” America used to graduate from school, go to work for a company for 40 years, retire and live the rest of their days on a corporate pension in a paid off house.  That just isn’t the case anymore.  The one thing that many elderly American’s will be bringing with them into retirement is their mortgage.  This will place a real burden on their fixed income. 

But wait just a minute….it just came to mind that the American Dream was never about greed, fortune or lofty positions.  It was always about a promise that tomorrow could be better; a thought that we could leave an even better life for our children and our grandchildren.  That’s the problem.  Hey, we need to remember that we can lose our homes and just get another one.  That’s not even an issue.  The one thing we can’t lose is our values and our sense of family and community.  That cannot happen or the dream is dead.  We are Americans; we can always turn the situation around. 

We just celebrated the 65th anniversary of D-Day.  Those were tough times.  Following a decade of depression, we were suddenly forced into a World War that took millions of our precious lives.  Those left behind willingly took jobs in aircraft manufacturing plants, grew their own gardens in the backyard in order to eat, and dealt with a rationing system that forced them to do without more than not.  Maybe it’s time for all of us, as an American population, to get tough.  You have to admit, we’ve gotten soft.  I’d rather my family not experience hard times for one moment but these are challenging times and we all need to get strong.  All I’m saying is we need to start to adapt, improvise and overcome.  That’s what I learned as a young recruit in the U.S. Marine Corps and now these attributes are making it around full circle into my personal life. 

No matter who is in control of the U.S. government, our population is in a constant state of complaint.  So, I think it’s time to shift the focus from the government to our personal lives.  Let’s all start to take more responsibility for what is happening in our lives.  If you look closely, I think you’ll find more good things happening than bad things.  Try it.  Write down three good things that happened to you today.  Stop the constant complaining and consider what is going right in life.  It will be better for you, your family, your neighborhood and your country.  We can all do this – allow history to repeat itself and allow the “tried and true” American spirit to bring us to new heights from this day forward.

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Most of the global population is feeling the effects of the current economic malaise that has spread like a virus to the world’s economies.  We keep hearing statistics that we are currently facing the worst economic situation since the end of World War II but this has happened numerous times – even before 1945.  I did some investigating and found that our new country had one of its first economic failures in 1797 while even the “Founding Fathers” were still wet behind the ears. 

The list of recessionary periods erupted for a variety of reasons; weak economic base, greed, war, governmental regulation, and a lack of confidence due to a variety of issues.  This is by no means a comprehensive listing of the weak/recessionary economic periods that have been faced by our nation but let’s take a look at a few.  I think you’ll find this interesting.

Panic of 1797 –

The effects of deflation of the Bank of England crossed the Atlantic to the new United States and upset commercial and Real Estate markets as far south as the Caribbean.  Britain was affected greatly because they war fighting a war with France. 

Depression of 1807 –

The Embargo Act of 1807 was passed by the U.S. Congress during the term of President Thomas Jefferson.  It devastated the shipping industry.  But as a result, the Federalists fought back at the embargo and began smuggling into New England triggering an economic depression. 

Panic of 1819 –

This is the first major financial crisis in the U.S. and featured widespread foreclosures, bank failures, unemployment, and a slump in manufacturing and farming.  It also marked the conclusion of economic expansion following the War of 1812. 

Panic of 1837 –

A sharp downturn in the U.S. economy was caused by bank failures and a lack of confidence in paper currency.  Speculative markets were affected when U.S. banks stopped payment of specie (gold and silver coins). 

And It Continues

Between 1837 and the turn of the century; there were a number of economic maladies that included the Panic of 1857, Panic of 1873 and the Long Depression (yes, I said depression) between the years of 1873 to 1896.  By the way, the Long Depression was caused when the Vienna Stock Exchange collapsing which caused an economic depression that spread around the world.  It occurred during a time when the world’s industrial output had expanded fourfold. 

There was a Panic of 1907 that happened because of the failure of Reading Railroad and withdrawal of European investments led to a stock market and banking collapse.  The Post-World War I recession from 1918 to 1921; the Great Depression of 1929; Recession of 1953 and 1957; 1973 Oil Crisis, a recession in the early 1980’s, 1990’s, and 2000’s which brings us to today. 

This Too Shall Pass

As you can see, the effects of a negative economy on Americans (and the world) have happened many times before.  I counted 19 separate weak economic periods that we have endured since the inception of this nation and there’s probably a few I missed. The point is this is nothing new.  

The world’s economy is actually rather fragile and can be upset by the most innocent of motives.  No matter what the reason, one thing is certain – we have always recovered from these devastating periods over and over again to experience positive economic growth on the other side.  While there’s no time frame that can be guaranteed as to when we will exit from this current economic state of affairs, one thing is for sure, at some point, things will start to improve.  In the meantime, keep a positive attitude and work toward a positive and useful future.  What choice do you have?  It’s time to make lemonade out of these lemons. 

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