The Federal Reserve will now wean the financial markets from monthly shots of $85 billion, beginning with a $10 billion reduction to be followed by adjusted amounts determined by the economy. So, what does the “tapering of QE” mean to you and me?
Actually, I wonder who outside of Big Banking ever saw ANY of those billions, or even any direct benefit. The Obama Administration has denounced the trickle-down ethos of the GOP and the Reagan-Bush regime, but Quantitative Easing is the ultimate trickle-downer. That means that aside from some lower interest rates, nobody on Main Street saw the actual QE cash, which only ran up and down Wall Street. Small business owners could smell the money but couldn’t touch it.
Investors and their advisers worldwide were sweating the long run-up to the “tapering” announcement. Why? Psychologists say that fear of the UN-known is a greater stopper than fear of a known evil or negative event. They also say that we can waste resources worrying about something bad that may NOT happen anyway (such as a dollar shortage without the QE pipeline).
The answer to paralyzing fear? Go with what you know. Address the issue in front of you, and the one behind it. Afraid of expansion? A business either expands or shrinks, so which will it be? It’s your call. Trying to save $$ by laying off staff and eliminating positions (but still needing those functions)? Well, New York-based columnist Froma Harrop cites a study revealing that $1 invested in people produces $28 in revenue. When we think of workers as an expense instead of a gold mine, we’re letting fear run our business (into the ground).
Reluctant to test that radio spot? Skeptical about print ads in both Spanish AND English? Not sure about whether to hire or expire? Our previous blogs hold keys to prosperity; you’re always invited to a test drive. Opening the door of opportunity often takes courage, conviction, curiosity.
Just trying to hold on “until things get better” only saves us a place in the logjam; standing still (stasis) in this environment invites stagnation to crush us. The only way out is UP. Easy for ME to say, right? Well, stay tuned to upcoming posts as we propose dynamic concepts and initiatives such as Radio Iberio.
If startups like us and mature independent businesses join hands across today’s murky waters, we can create our own safety net. And that safety net becomes a trampoline to new heights.