Hangovers are tough.
All too often we forget that different people, raised at different times and in different ways see things entirely differently than others might. I wonder what Generation "Y" thinks about our recent financial history and how their understanding of the facts that brought about the worst financial crisis of our time will impact their actions as they move forward in life?
What would your view of the banking sector be if you were at the precipice of your financial life in 2007-2009? I wonder how much faith and comfort you'd have as you viewed your future financial landscape and considered the role that the banking and brokerage industry would play in your goal planning? My bet is that you'd be skeptical at best and skepticism typically leads to avoidance.
Skepticism in finance is almost never a good thing. There's already enough "built in" propensities to avoid matters of personal finance, adding to the pile of impediments is not a good thing.
And how do we propose to alleviate the problem before it snowballs into other ones? I'm not sure that we've thought that one threw have we?
What if an entire generation has lost it's faith in "investing" and "banking" seeing them both as self absorbed sectors, bent on greed, unfairness and lack of transparency?
What will that portend for the housing market?
What will that portend for retirement for a generation afraid to trust anyone with just about anything having to do with their life's savings?
What will that portend for social programs, already straining to provide for people?
Many outcomes are unintended. The lack of intention however has no direct corollary to the disruption it causes.
What we better start getting right in our thinking is this: Our actions send a wave of information forward and that wave, like the ripples on a pond reach all points. Understanding that the impact of and implications of that ripple last long after we've last seen it traverse the surface is something that we seem to keep missing.
To this day, I meet with both existing and prospective Client's of a certain age who also don't trust "investing" or "ETF's" or "advisors" or much of anything else, absent dirt, a purposely built home and cash.
Their starting point; the Great Depression.
Bottom line is that "it" lasts longer than we think, takes more of a toll than we realize and consumes the thoughts of a generation.
The failure of the Financial Crisis and the havoc it caused might need to be measured for the rest of most of our lives.