Random Thoughts: End of Days Edition

This piece was written in 2011 during a strange cultural moment when a fringe group predicted the Rapture would occur on a specific Saturday evening. Financial markets were shaky, U.S. debt was a top global fear, and the Canadian economy was wobbling post-2008. Since then, we’ve lived through actual crises: pandemics, inflation spikes, housing insanity. So the idea of a scheduled apocalypse almost seems quaint. But the message remains relevant: panic makes people do dumb things with money.

Given the amount of rain that has fallen in Ottawa lately, it is easier to believe the End of Days scenario being espoused by our friends down south. Saturday at 6:00 PM EST, there will be an earthquake that will signal the beginning of the end for everyone (except the few Christians that God will take up to heaven), that is what is being foretold by these well-meaning (if not a little deluded) folks. So I shouldn’t be using a buy-and-hold strategy on the markets? I already talked about this at length last week with Doomsday and Money, but I did want to warn folks that if it does start ending on Saturday, you were warned!.

Glad to see some entrepreneurs have figured out how to make money on this. Someone is offering pet-sitting services to those who feel they may be taken in the Rapture. Evidently, they have hired non-Christian pet sitters who will most likely stay and take care of the chosen ones’ pets. I can’t make this stuff up, folks. Go look it up.

The looming American Debt Crisis is actually the one thing that has got my interest this week. Are there folks short-selling U.S. bonds? Wow, now that is gambling, assuming the U.S. government will default on bond pay-outs, that really would be the end of days (financially at least).

Psychological Tricks

A) Fear sells.

Predictions of doom make people buy things they don’t need and sell things they should keep.

B) Certainty feels soothing.

Even dire predictions feel comforting because they tell you “what’s coming.”

C) Herd behaviour is undefeated.

If enough people panic, the rest follow, not because they agree, but because they’re terrified of being wrong alone.

My Writings before the Rapture

• The PBS nightly report is doing some excellent work so I included a short video U.S. National Debt, with both a Senate and Presidential perspective.
• Borrowing from the Penguins of Madagascar, I asked the question How Do You Steer an Elephant? The elephant is a metaphor for your financial plans.
• Given the flooding across North America, it was inevitable that I would write Controlled Levee Breaks, in which water was again a metaphor for Debt.
• I noted the passing of Peter Burns in Long Term Disability Insurance, Peter was a victim of Nortel’s disability insurance debacle.
• Given the impending debt crisis in the U.S., “I am Sorry, Sir, Your Card is being refused” seemed apropos. Note the Canadian Debt may be smaller, but it is not insignificant either.
• Random Thoughts: Spring has Sprung is a recap of back when Spring sprang in 2011.

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As a note, I actually enjoy all comments (even the ones that question my sanity) and will try to respond to most. Please feel free to comment away. Please don't leave guest post requests in comments; I delete them.

Other End of Days Ideas?

Other Financial Bloggers were not as fixated on the possible end of the world as I was this week (luckily, or there would be nothing good to read):

• Boomer of Boomer and Echo writes about How to Kill The Joy of Giving. Unfortunately, what happens sometimes, but maybe giving for the sake of giving, is the answer?
• Michael James points out that Smart Investing is Boring, but also very satisfying. I'll take boring and smart every time.
• Jim Yih over at Retire Happy points out that Debt Has Become Big Business, and it certainly gives bloggers a heck of a lot to write about.
• Canadian Capitalist wishes Bell adieu with Goodbye Bell, Hello Teksavvy, which will hopefully save him a great deal of money, and possibly lower his aggravation level as well.
• Free From Broke gives us advice on How to Avoid Free Trial Scams and What to Do To Escape them, very useful tips and hints in this one.
• Larry MacDonald points out the Inevitability of the U.S. Debt Crisis, which is kind of like pointing out the 800 lb. gorilla in the room. On the bright side, Larry's RSS feed is visible again (it has changed to this).
• Financial Highway writes about Job Loss: What to Tell the Kids. Never an easy topic, especially if the kids are younger.
• Preet points out that Shakespeare was correct, neither a borrower nor a lender be, with If you lend money to friends prepare for awkwardness. If you don't want to talk to them again, think of it as a wise investment!
• Miranda writing over at Complex Search asks Is it Time to Find a New Bank ? If  you need to ask that question, the answer is yes.
• A chronology of crisis response measures (2007–2011) from our friends at the Bank of Canada.
• PBS gave us U.S. Debt Ceiling: Costs and Consequences , spoiler, dire!

Carnivals this Week

I also had some submissions accepted to various carnivals, so go have a read of these as well:

• Canadian Finance Blog hosted The Canadian Finance Carnival #36. This included my post about Back to Three Years Ago for Jobs
• Retire by 40 hosted the Totally Money Carnival #19: The New Oreo Edition (but not double stuff), which included my post  The Wizard of Omaha speaks about Ethics and the economy

FAQ End of Days Finances

Remember

"The world began without man, and it will end without him."

Author: Claude Levi-Strauss