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Writer's pictureNate Baim, MBA, CFP®

Have We Learned From History?


Enjoy this week's edition of the Planner's Beta


Beta (n) - climber's jargon that designates information about a climb This digest's purpose is to share observations, ideas, and treasures found this week which you may also find insightful. Sharing does not mean it's an endorsement. I am endorsing the pursuit of knowledge and exploration.




Something from Nate - Congrats to the Class of 2020! Paying down student loans can be stressful. Having a process makes it easier to cut through the complexity and confusion. Watch the video below to hear Nate's thoughts on how to pay off student debt.



'A Lot To Be Hopeful For': Crisis Seen As Historic, Not Another Great Depression (NPR) - I've read a fair number of headlines which state we are heading toward the next economic depression. Although we do not know what tomorrow will bring, there is reason for optimism. We learned a lot since the Great Depression. First, one of the primary lessons economists uncovered in their studies of the Great Depression is that the central bank failed to expand the money supply enough to support the demand for cash. Second, we better understand the need for quick action during economic crises. However, we need to be mindful that deploying vast sums of money in a short period will have positive and negative consequences. The economy will likely benefit from these policies in the short run. But over the longer term, the U.S. will probably have to bear the costs of these policies through increased taxes and inflation. There are also socio-economic, and quite possibly, geo-economic, considerations that will need to be addressed in the coming years due to these policies. 

What Happens to Hong Kong Now? (New York Times) - Many investors are watching what is happening in Hong Kong with a close eye. Hong Kong is a vital banking center where a sizable portion of its services acts as a conduit for capital to many businesses that operate within China. The proposed security law threatens the two systems, one state policy in place between Hong Kong and mainland China. The current system allows Hong Kong to keep many of its laws separate from the communist regime. However, the security bill, if enacted, will remove key legal differences, and increase the influence of the communist system within Hong Kong. The U.S. is currently considering policies to isolate Hong Kong if the bill becomes law. And the U.K., the prior colonial power of Hong Kong, is considering offering Hong Kong citizens who possess a British Overseas Passport a path to become British citizens. Many are speculating that if the security law is enacted, there may be an exodus of people and capital from Hong Kong.

If You Feel Like You're Regressing, You're Not Alone (HBR) - Just as we go through different phases of grief, this Harvard Business Review article argues organizations advance through various stages during a crisis. Companies progress through three steps during a crisis: emergency, regression, and recovery. Team members shine in the emergency state and often show their best colors when trying to manage pressing needs. However, as time progresses, the definition of the emergency is no longer clear. Small items begin to cloud judgment, members get tired, and the rate of progress declines. To combat regression, leaders should refocus their team on new essential strategic items and update roles and responsibilities to reenergize members. During the recovery phase, leaders will need to be emotionally aware of the members' needs and provide new opportunities aligned with the strategic objective for members looking to grow.


Quote of the Week

"I don't know where I am going from here, but I promise it wont be boring." - David Bowie


 

Have something on your mind? Schedule a free call with Nate.

 

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