Summer of Uncertainty

This is the summer of uncertainty. Back in the fall when I was taking Finance my professor talked about Systematic Risk to the market. Basically a trigger or event that no amount of diversification can protect against. The most prevalent example he provided was oil. Little did I know that less than a year later I would be witnessing first hand the domino effect of the burst housing market which triggered the massive credit crunch/collapse that in turn has pushed investors to commodities such as oil. Now I know that there are several other highly debated factors that are cumulatively contributing to the sky rocketing cost of oil (demand, aging infrastructure, perception, international relations, red taped domestic production, other hidden factors) but I am not a Economist and I am not here to argue. I am simply trying to digest the challenges that are literally EVOLVING before my eyes daily as I read the news, listen to talk radio, and see my family and friends struggle to stay afloat.

Which leads me to a darker place. I can truly say that I have a vote of no confidence with our two presidential nominees. Sorry B-ROC I need more than "hope" and McCain.........ugh.........the proof is in the pudding, whatever that means.

So to try and divert away from my tendency to worry obsessively about things that are out of my control , I am going to brainstorm some potential positives that seem to be or could be a result of this summer of uncertainty and ride out the storm with the rest of the nation.

POSITIVE 1
Willingness to Change
With the energy crunch, people seem to be willing to change their behaviors. SUV/Truck sales are down, public transportation riders and car pooling has increased, and employers are entertaining alternatives to reduce stress on their commuters such as telecommuting or 4 day work weeks. As cliché ' as it sounds, creating a willingness to change may be the hardest part. But is that change sustainable if prices go down is another question........oh no slipping down the pessimistic slope, time to move on.

POSITIVE 2
Voice of the People
Republican/Democrat/Somewhere in between, it doesn't seem to matter, bottom line, energy costs affect the masses. People need to work, people need to eat, and people need heat. Although many hot topics have centered around this years presidential election, this may be the issue to truly awaken and unite the sleeping middle-class giant. Maybe people will demand more from their leaders than short-term solutions and smoke and mirrors. May be leaders will realize that repealing tax breaks and imposing profit limits are just addressing the symptoms and not touching the root cause(s).

POSITIVE 3
More objective look at domestic resources
It amazes me how QUICKLY people are ready to set up a rig and drill for oil in our coastal waters once gas hit >$4.00 bucks a gallon. But what REALLY amazes me even more is how much of our natural resources are protected and unattainable at this point in time. Now let me state this, I have not come to a decision on how I feel about this issue. There is part of me that thinks it is idealistic to preserve our ocean and mountains. But then I look at how other countries are handling this very same issue (Brazil) and making themselves independent of foreign oil and OPEC. If the USA is not willing to tap our own countryside for ADDITIONAL energy resources, shouldn't we pay the premium to other countries who are willing to do so? I am unsure if people are unaware of this fact but it will definitley be interesting to watch the upcoming developments.

Alright, I am tired. Time for bed.