Guidant Financial Group Blog

Isn’t it ironic that the latest bank to be razed by the winds of financial ruin is the Columbian Bank and Trust Company of Kansas? (See US Regulators Shut Down Columbian Bank in Kansas) Ever since Dorothy uttered those famous words from the Wizard of Oz, “Kansas” has become synonymous with familiarity and normalcy.

We don’t want to believe that this failure – the ninth FDIC-insured bank to go under in 2008 – is anything like “normal.” And, even though we concede (as we did in our 07.28.08 Blog) that cyclical ups and downs are to be expected, we should never allow ourselves to become so complacent about today’s sorry state of affairs that we accept it as routine.

There is danger that, as these closures become more commonplace, we develop a sort of blasé “it-is-what-it-is” attitude. Maybe it’s like kids who become desensitized to violence by playing gory videogames. Or perhaps it’s simply human nature to deal with the shock of these various fiscal disasters by falling into a type of survival denial: if we haven’t been directly touched by it, if our own bank hasn’t gone under and taken our life savings with it, then maybe it’s not so bad.

But it IS bad. And even though we can see some silver linings amidst the storm clouds and we know that rainbows often follow showers, we can’t (and we shouldn’t) ignore the fact that the sky is nevertheless pretty dark and ominous. Our job as educators here at Guidant is to help you see the potential sunshine through the gloom and to help you make the most informed decisions within this economic climate.

This does not mean, however, that we aren’t seriously concerned about our battered economy. We must all face the fact that it’s in trouble and do our part to help diminish the damage. This includes adjusting our attitudes towards credit and spending, learning all we can about monetary matters, more carefully considering our financial options, and demanding of our leaders that America’s economic infrastructure be closely examined and repaired. If we don’t take seriously the carelessness, blind naiveté and reckless behaviors (by banks, the government and citizens alike) that created this mess, then we’re bound to repeat this disaster until the lessons of fiscal responsibility are learned.

Now that said. . . . Even though the FDIC is anticipating more bank closures this year, we nevertheless believe that the vast majority of financial institutions will survive and will be the stronger for it. We further believe that, through some careful and mature handling of our personal finances, most of us, like Dorothy and Toto, will also weather this storm.