Dr. Boyce Finance: Is there a good side to the recession?

By Dr. Boyce Watkins

www.BoyceWatkins.com

I hate being the doctor who has to tell the patient he has cancer, but the truth usually sets you free (or so my mother told me): We are in the midst of an economic bloodbath. It’s tough to argue that an economy which shrinks by an annualized rate of 5% is still healthy. It’s hard to tell someone that 7.2% unemployment, with the most job losses since 1945, is a good thing. A 4,000 point drop in the Dow is nothing to sneeze at, even if you have plenty of tissue. Times are tough, we know that.

But if we focus hard enough, we might be able to find a few bright sides to all this. With hopes that no one chooses to kill the messenger, I am going to give it a shot.

1) It could always be much worse.

The United States has, according to some, the strongest economy in the world. Our economy could shrink like Rush Limbaugh’s body on drugs and still be disgustingly rich compared to the rest of the world. Don’t believe me? Consider the “fast-growing” Chinese economy, the one that everyone thinks is going to outpace the United States in the next few years. Our annual tax revenues are nearly 4 times greater than China’s ($2.5 Trillion vs. $670 Billion) and they have over 4 times more people than we do (300 million vs. 1.3 Billion). In other words, our per capita tax receipts are over 16 times greater than China’s. So, we’re far better off than most of the world, even when we’re broke.

2) If there were ever an argument for getting out of Iraq, this might be it.

It’s hard to declare war on random countries if you don’t have the money to do it. War is big business and attacking other countries is a huge financial investment. If you don’t think war is about money, then you may want to take a couple of Political Science and History classes. Perhaps these troubles at home will keep us from creating trouble abroad, since Americans have lost patience with irresponsible, arrogant war-mongering. The Obama stimulus plan is asking for over $800 Billion dollars to boost our economy. We’ve already spent nearly $600 Billion in Iraq. Rather than declaring War on Terror, President Obama has declared War on the Recession, which seems to be a far better investment.

3) If you want to buy cheap stocks or real estate, this is the time to do it.

When the market rises, everyone wants to buy stocks. People forget that you shouldn’t buy stocks when prices are high, you buy when the prices are low. Companies with plenty of cash are grabbing investment and real estate bargains that were hardly available a year ago. You should be doing the same if you can afford to do it. Investors who purchases stocks after major market declines tend to do much better than those who buy during booms. You hear me Warren Buffet?

4) Struggle makes us FOCUSED.

Although I tend to be a hardcore capitalist, a part of me misses the activism of the 1960s, when people cared about more than making a dollar. OK, I wasn’t around in the 1960s, but I’ve watched enough old movies. Going through tough times not only teaches one to pursue a higher purpose in life, it also leads individuals to more carefully scrutinize the state of affairs in our government. In fact, I dare to argue that the financial crisis was just what Barack Obama needed to secure his election over John McCain. Economic prosperity allows us the luxury of choosing our politicians based on silly issues, like gay marriage (as we did in 2004). When we are worried about putting food on the table, we look beyond the silliness and choose the most qualified and most intelligent person for the job (after ensuring that he knows Africa really is a continent). Finally, tough economic times make you more responsible in your own money management, as the threat of financial insecurity keeps us all on high alert.

Those are my points, so again, please don’t kill the messenger. I certainly do not celebrate a weak economy, but I am a firm believer that focusing too much on the door that shuts keeps us from appreciating the ones that just opened. There’s always light at the end of the tunnel, a pot of gold at the end of every rainbow, and….well, you get the point. It’s the toughness of tough times that make the good times good. Keep hanging in there, it’ll be ok.

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lovemaking 101: Merging Assets with Your Partner in ways that Feel Good.” For more information, please visit www.BoyceWatkins.com.

Barack Obama Leaves Trinity: Why I don't Agree

Barack Obama/Kunta Kinte - What's the Difference?

I woke up today thinking about the movie “Roots”. The first scene that jumps out at me is the image of Kunta Kinte being beaten because he wants to keep his real name. With each welt of the whip, he got a little weaker, until he finally changed his name to Toby.


Most of us were hit hard by this scene and hurt by it. I am equally hurt when I see Barack Obama, the political Kunta Kenta of 2008.


With each crack of the right wing whip and even some lashes by Hillary Clinton, Obama is being forced to slowly, but surely rip away everything that has helped him identify with being a black man in America. First he has to put a muzzle on his beautiful, intelligent wife, apologizing for the fact that she “misspeaks” in public. Next, he is distancing himself from Louis Farrakhan, a man with whom he had little prior association. Shortly thereafter, he goes into hiding like a broke baby’s daddy on the date of the 40th anniversary of Martin Luther King’s Assassination, all because he didn’t want to appear “too black” for the American public.


Now we have Jeremiah Wright. After 20 years with the same pastor, Kunta Obama suddenly realizes that he made a mistake. It wasn’t sermon number 14, 122 or 1,107 that led him to that conclusion. It was Hillary Clinton and Sean Hannity who helped him see the light. They helped Barack Obama finally realize what should have been obvious from the very beginning: His radical wife needed to be put in her place, Martin Luther King is an embarrassment and his pastor can’t possibly be a true American. Thank God for Sean Hannity.


By the time Obama is done with this election, he will have fully apologized for being a strong black man in America. At that point, the transformation will be complete and Kunta will have no feet. I am only waiting for Hillary Clinton to force him to denounce Malcolm X, Marcus Garvey and Harriet Tubman. After all, they were radical too.


This election surely makes Barack wish that all of his friends were white, perhaps even his wife. Those black people are just too much damn trouble. I might start getting rid of my black friends right now. Can I divorce my mama?


As I see the gobs of email coming in from readers at YourBlackWorld, the division within the black community is in full view. Some are angry at Pastor Wright for “messing up the good thing Obama has going”, while others feel that Pastor Wright should “tell it like it is.” The emails remind me of two women fighting hard over the same lying, trifling man who has learned to play them against one another. Rather than focusing on the real target (the man), the women fall right into the man’s trap, as they both so desperately seek his validation.


The truth is that the women in my example are afraid of being alone. They need him to tell them that they are beautiful. They’ve allowed this vulnerability to be exploited by a socially parasitic individual who preys on the insecurities of others. Black people, and Obama, NEED to be validated by White America. We NEED to get into the White House so that we can feel that we have achieved something. It is this need for validation from whites that leads us to sell our souls and do any tap dance necessary to achieve public approval. The loss of integrity, embarrassment, and degradation are all worth it in order to achieve the ultimate goal. I would not compare it to pure prostitution, because even prostitutes have limits.


Call me crazy, but I personally believe in a good old fashioned commodity called “integrity”. Integrity says that you don’t go denouncing your relatives because they say things that are displeasing to your audience. A high school kid doesn’t drop his little brother because the “cool kids” don’t like him. I don’t fault Jeremiah Wright for being the man he has been for the past 40 years. I only question Barack Obama, who is not the same man he was 2 years ago. I question America, a country so drunk with its own arrogance that it cannot tolerate people of color (Michelle Obama, Louis Farrakhan, Martin Luther King and Pastor Wright) who speak their mind about our country’s inequities. Every country in the world sees America’s racism. The United Nations writes reports about America’s racism. But America cannot see its own racism and those who see it are afraid to talk about it. That’s just a damn shame.


Were Obama not running for president, Jeremiah Wright would not be a problem. Barack would be going to church and saying “amen” like the rest of us. But the continuous game of psychological twister being thrust upon him by the right wing has forced him to lie as much as any other politician. Perhaps a young Barack Obama thought, in some idealistic way, that just being a good American could get him elected. Like many black men in America, Obama thought that doing the right thing, working hard and being a good person would be enough. But like the rest of us, he gets slapped with the reality that being a black man in America is one of the most unpopular positions on the social totem pole. Only a complete apology and full extraction from where you came from will do the trick: NBA players go through it, black professors go through it and politicians REALLY go through it.


Barack Obama, in my opinion, is not going to win this election. But no matter the outcome, his soul will be weary, weak and depleted. Kunta Obama will have no feet, and he may not even get to be president.

Dr. Boyce Watkins is an Assistant Professor of Finance at Syracuse University and author of “What if George Bush were a Black Man?” For more information, please visit http://www.boycewatkins.com/.