Dow Jones Jump – Fool Me Once, Shame on You; Fool Me Twice, Shame on Me

Yesterday’s surprising spring-like high for the New York Stock Market the Dow Jones Industrial Average had all the usual suspects talking about how we’re coming out of this recession.

It was a record high, climbing 158 points, reaching 14,286, which broke it’s previous record high set in October 2007. The Dow Jones fell back slightly and by day’s end was 14,253.

Here in Canada’s banking capital, Toronto’s S&P/TSX rose 28.63 points, but was still well below its record high set in June of 2008. The S&P 500 and Nasdaq exchanges also showed increases, but the focus was on the Dow Jones, because it broke the record books.

Bankers, economists, and other important-looking people dressed in expensive three-piece suits appeared on all the newscasts, talking about how this was just the kind of fiscal movement we all need to get us out of this seemingly never-ending global financial mess.

Hey, wait a sec – don’t the stock markets suddenly increase just before most of the major economic catastrophes of all time?

It’s like a financial tsunami of sorts, as the trade winds ruffle amidst uncertain economies globally. Traders buy up stocks, hoping their actions will trigger an up-swing and it does. Until those everyone catches on, and cashes out, selling stocks like hot potatoes, crashing an already volatile market.

That’s what happened just before the Great Depression in October of 1929. That’s also what happened just as the housing market in the States went belly up, which brought us into our current economic sandstorm.

And as people across North America continue to struggle to pay their bills, it’s happening again.

More people have given up looking for work than ever in recorded history – even since the Great Depression of the Dirty Thirties.

There are fewer full-time permanent jobs, as companies continue to outsource, and contract out their workforces to temporary, contract workers.

The cost of goods and services continues to rise, yet wages continue to fall.

And despite all of this doom and gloom, the newscasts yesterday painted a rosy picture of an economy on the up and up.

Once fooled, twice shy.

We all should be twice shy – maybe more with all the bullsh*t being broadcast by bankers, economists and their ilk.

We are far from the end of this global depression – and their artificial hype will just make it worse.

Economists traditionally try to calm everyone down during economic crisis. That’s not only their nature, it’s in their best interests – because panic causes rash decisions – like selling stocks and upping interest rates – which crash economies.

But outright lying to keep the peace when people are losing their jobs, their homes and ultimately their lives is unacceptable.

Fool me once, shame on me. Fool me twice, shame on me.

Don’t be fooled by the banking buffoons.

Investing Is Easy, Getting Investors Isn’t

With the success of entrepreneur investment shows Shark Tank and Dragon’s Den, you’d think if you came up with a great idea, getting someone to back that great idea would be easy.

Think again.

These are tough times. Millions of people have been displaced in this economy than ever before – even the Great Depression of the 1930’s wasn’t so bad.

Which makes me wonder why the bean counters that track our economy STILL refuse to call this period in economic time what it really is – a depression – but that’s another story.

I’m in the process of raising funds for what will be the next big thing. We know it will be the next big thing, because we’ve based it on the successes of other companies, combined those successful elements, and created something which no one is doing here.

We’ve got a sound business plan, lots of additional documentation, and we’re in the process of forming our teams, of handpicked people to lead us to success.

When I mention in passing what it is I do, people perk up, and immediately show interest.

When I go to potential investors, they to show immediate interest, but when it comes to putting their money where their mouth is, they suddenly become very quiet and defensive.

Or worse, they try to sell me on their investment ideas, so that I become the investor.

Like my bank – or now former bank.

A great way to lose a client is to say “no.”

A sure way to lose a client, is to continue to try to sell them on a product or service, without actually HEARING them and their needs.

My bank, BMO Bank of Montreal, kept trying to sign me up for a business account, without any inclination of whether they would even consider providing a business loan, or business line of credit. They wanted to hook me by the nose, by getting me to sign on for a business account product AND THEN they’d talk about business loans and lines of credit.

I don’t want to start a business account until I know the bank is fully behind me, or at the very least, has the best business products suited for my business.

And I felt like I was in a used car dealership, as the young Asian kid, with horrible English, continued to ask me to sign up for a business account, completely ignoring my needs for start-up funding.

Small Business Banker for GTA Central – or at least that’s what it says on her business card – didn’t even have current literature I could review with her on current business banking information. When I initially if she had any information, she pointed me to the website – which although useful, wasn’t why I took the time to come in and meet with my branch.

Upon my telling her directly that she wasn’t very helpful, she got up and brought me BMO Bank of Montreal’s Better Business Banking Guide, which was dated 2011 and already had pen markings from others she had tried her sales pitch on.

And again, although we’re looking for the best financial institution to deal with, we’re looking for more than just a place to invest our business dollars.

We’re looking for a place which provides the financial support services which a business needs, not just an account number to make some banker earn her commission.

Maybe I’m old fashioned, but I believe in building relationships, and working with people to achieve great things. I don’t believe in just buying a product or service from just anyone, and hoping for the best.

BMO Bank of Montreal lost my business, because they failed to listen to my needs. I got a pre-rehearsed sales pitch, instead of someone actually hearing what I was looking for.

Ironically, I went next door to the neighbouring Bank of Nova Scotia, and immediately met with the Branch Manager, who actually listened to my needs, and provided some real information which I could use.

Maybe they’ll earn my respect – and my business.

Which is a great loss to BMO Bank of Montreal, because we will be huge.