Respecting the Bear, CIT, Government Saving

The bear hasn't gone into hibernation yet as seen with the daily emotional up and down of the markets, along with the unstable foundation with home sales and jobs. Investors are being externally driven which implies there is no solid foundation within themselves that says their investments are sound and to hang in there through the rough waters that are indefinite.

Cit filed for bankruptcy Sunday, the largest company who provides loans to small and medium companies. The question is will the funding continue. It is critical now since the big banks are not lending to this part of the sector that provides the most job opportunities.

The 500 largest non-financial companies are conserving more cash than in the last 40 years, to cover daily business costs since the credit markets stopped lending in 2008. This is a positive move and an example for the rest of us to consider. The federal government needs to learn about 'saving' energy. Their actions reflect the opposite, spending freely while their words say we have to 'cut the deficit.' This collective conflict does not allow for innovation, responsible behavior, or long-term planning for the highest good. Good business means having a goal, defining what resources are required and a plan showing how to get there. The implementation of the plan and the ability to be flexible when the unseen affects the plan are keys to success. The government is trying to micro-manage every area like healthcare, the financial sector and so on. Until it learns how to manage in a business-like manner, the primrose path beckons.