A Funnelweb World

Lately I’m reminded of that saying, something like “owe the bank $1000 and its your problem, but owe them a million and its theirs.”

Apparently Lehmann Brothers has debts running into “HUNDREDS of BILLIONS” of pounds. Ironically, no longer their problem of course. And to me that means that there will indeed be more big companies falling before this thing is over. As the market analysts and experts say, where this will end is anyone’s guess. Worrying for the staff concerned, and also for savers, investors and creditors. My hunch is that another big UK bank will probably fall - someone’s holding a bad hand of debt, for sure.

We live in remarkable times.

It all makes me relieved that around a year ago I made some major financial adjustments in my life and lowered my exposure to the stock market, converting all my Oz shares and most of my UK shares to cash, and paying off most of my mortgage. I remember saying at the time (back in March) to my RMG colleagues that the stock markets were going to get a lot worse (I didn’t tell them Hector told me, though I think this was around the time Bear Stearns collapsed.

But what I didn’t reckon on at the time was the wonderful feeling of freedom that doing this gave me, how it went far beyond just reducing my market exposure, how it changed my attitude to loads of things.

For starters, I came to the realisation that I didn’t need to spend thousands on a two week foreign holiday anymore, because I had seen what I had wanted to see of this side of the world and the other side could wait until I moved home in a few years. And given I was indeed heading back down under at some point, I figured I should spend more time enjoying my current home.

I also decided that I really didn’t need a new kitchen or to spend money on other home improvements - that I could do a lot of stuff myself, and would also enjoy it more.

And it also gave me a whole new perspective on “work”. Years ago, I wouldn’t have simply quit a job after a month because I didn’t like it. And I wouldn’t have the attitude to work that I now have, which is that if I decide at some point in the future that I don’t enjoy it, I’ll quit again. I always despaired at those folks who marched stoney-faced across London Bridge every morning to work - reminded me of that video for Mad World. I’m glad I never have to become one of those people.

I feel very fortunate because I have what I think really matters in the world - a happy home life, loving friends and family (even my mother, in her own special way), and financial freedom to change things that I don’t like (e.g. my job).

And that’s all I need to get me by.