No worries. Nothing to see.

Unless you look at this chart.

On the left is 2008.

On the right is today.

The circles represent the size of the banks that failed in 2008 and the size of the banks that have failed in 2023 – so far.

If you’re a “true believer” that everything is going to be fine, go back to sleep. (And I think Fauci has another booster for you.)

For others…

Do financial crashes matter?

They do if: a) you’re overextended or b) if you have a big asset or assets you need to sell.

It never makes sense to be financially overextended. In the 1 out of 1,000 times you hear about it turning out well, you’re missing the other 999 stories about the consequences of being financially fragile.

My favorite saying about this: “If I lived like I was rich, I wouldn’t be rich.”

Also, if you have big assets to sell, the time to think about doing that is when the sun is shining. Yes, you might sell early, which is much better than selling late.

The interesting thing is that those who play cycles like this and have cash instead of being part of the wreckage get everything needed to make money – rent, advertising, talented people – at a deep discount.

I wrote a book about this and what to think about in times like these: Bank Failure, Bank Runs, and Financial System Collapse.

– Ken

P.S. For over 25 years I’ve been sharing the simple but powerful things that matter in business – and life – with my clients.

If you’d like direction for your business that will work today, tomorrow, and twenty years from now, make sure you have your own copy of The System Club Letters book.

Posted: May 11, 2023

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