The infamous Bernie Madoff. So much has been said and written about him since the tale of his bilking both private and institutional investors hit the scene that I nearly didn’t write this entry. But isn’t it worth saying that Madoff can – inadvertently of course – teach us something?

-The appealing culture of “my word is my bond” can be a trap. We like to believe that we can, through intuition and experience, determine that someone is good, honest, skilled, and trustworthy. Even today we often make deals on a handshake. The list of institutions, organizations and wealthy individuals that dealt with Madoff is troubling in part because each and every one of them wrongly depended on either their own judgment or someone else’s, then entrusted Madoff with their money. It’s hard to imagine completely abandoning our own intuition, but in the words that Ronald Reagan made immortal, “Trust, but verify.” And certainly don’t outsource the job. Don’t trust a stranger to trust a stranger. Ever.

-And the Securities and Exchange Commission?? That’s even worse because the SEC supposedly knows and cares about what it’s regulating. Right? But the SEC gave Madoff a pass after a recent investigation of his operation. The jury (and there should be one, eh?) is still out on this, but the word negligence is too mild, and the word criminal may be just a starting point. Just saying. Sadly, here it is again: we can’t trust strangers to take care of us, and apparently that includes the SEC.

-Little-known and poorly understood financial constructs (like Madoff’s hedge fund) are dangerous investments, even if you’re Steven Spielberg or an international bank. Abstruse mechanisms are sometimes that way for a reason. It’s easy to get stupid in the search for way-better-than-average results, whether in love, finance, beauty, sex, or other matters close to the human heart.

-There must be other Madoffs out there. I hope I’m way off base on this, but suspect we’ll uncover other investment frauds during the next challenging couple of years.

Scams and inspiration... oh, my brain is full.

Two happenings got me thinking this week.

First, the scam. I got the email from a client. It said Talbots is closing all its stores. And J.Jill. Ann Taylor – 117 stores closing. There was more, but I couldn’t see past the tears. After all, I am slightly petite. 5 feet nothing, actually. And like many women, I’ve learned where I should shop and where I shouldn’t. I should shop at Talbots, Ann Taylor and J.Jill.The good news? The email was a fake. Thank heaven! I figured it out before I emptied the stores of everything I could squeeze into.

Second, the reformation. Last night I attended an outstanding event sponsored in part by a client, FieldEddy Insurance. John Zogby, pollster, spoke about his new book The Way We’ll Be: The Zogby Report on the Transformation of the American Dream. John says Americans will focus less on material things (in part because many of us have gone downhill, shall we say, in financial terms). We’ll want our tombstones to say more than that we spent “37 years in a cubicle.” Also, a million people now approaching 60 will live to be 100! He adds that we’ll NEED to live that long if we want ever to retire.

Seriously, he makes some great points: that more isn’t always meaningful, that we’re tired of fake and want authenticity (he pointed to the Dove ad campaign for real beauty, with ads that feature women with real, lovely but imperfect bodies, as an example of how wildly successful that approach can be). IN FACT, we’re so sick of the meaningless and the trivial that we didn’t care about Bill Ayers or “lipstick on a pig” in the recent election. No, we wanted some real help and a real transformation.

Pulling together a clever game plan is taking awhile.

Step 1: I decided to look over my investments. Being thoroughly up-to-date, I have everything accessible online. Being thoroughly a coward, I hadn’t looked at any of it in… oh, shall we just say, quite a while.

Step 2: Returning from the kitchen, now with a paper bag into which I expect to breathe for some time, I sat down to think. I thought about simplicity. I thought about how much I enjoy my work, and wondered if I will still enjoy it when I am 86.

Step 3: I realized I don’t like simplicity all that much. No, I needed facts. An action plan. And thus I began my research.

Step 4: My financial advisor, whom I trust, said it’s hard to predict what will happen next and how long recovery will take. NOT GOOD. Like a student seeking her guru, I continued my search.

Step 5: I assumed the major investing publications would help out. What sectors are good? What kind of a time window is needed to recover while staying largely in equities? Should I sell my jewelry on the streets of Springfield? I hoped to find the answers to these and more deep questions.

Step 6: “The answers” I have found

Big Oil: We told you so.

If you can learn from the mistakes of others, now is a great time to be an investor.

Dow 20,000 or 5,000? (Author doesn’t know)

I’ve also learned that I should: use Quicken, keep putting lots of money in my retirement plan (kind of like dumping sand into a big wet hole you’ve dug on the beach, but okay), and look at exciting vehicles such as whole life insurance (who needs ACCESS to the money when you know it’s somewhere out there?)

Step 7: What? I’m taking a nap now. Let me know when I should wake up.

Prior to the election, this huge display in Fairhaven, MA read "Obama Now!"

It feels like many Americans, no matter who they voted for, are now very proud of the U.S. for the historic accomplishment of electing our first African American president. I’m proud of us, too.

Of course, the next question is, “what can he do?” The country is in a bit of a pickle, economically speaking. (In fact, I’m burying MY spare change in the backyard and I really hope you won’t dig it up.) Our health care system is great – if you can afford it. We’re mired in Iraq, although to an expert military strategist such as myself it is evident that it’s time to pack up and head home (I know, I know, not so simple). And we continue to be a divided country in so many ways – by religion, social class, political leanings, race, taste in shoes, and more. One election can’t erase that.

However. The last eight years were a study in fear and resignation. Our foreign relations were often embarrassing. Our president couldn’t pronounce “nuclear.” (This is major.) We responded to an attack by retaliating – mostly at the wrong country, since Iraq clearly had nothing to do with 9/11. Oops, sorry, Iraq. Chances are good that that we can do better.

Obama represents even more than our first African American president (and I sort of worry about that term, because like so many of us, he has a mixed lineage and I feel bad labeling him). He is highly intelligent (what a novel idea! a smart president!). He appears to be principled and has the ability to analyze and deal with information in a sensible, non-hotheaded way. And just as lovely is the fact that well over half of voting Americans gave him a mandate and are squarely behind his presidency. While the stock market bounced up and then tumbled during and following the election, showing that optimism is fragile, I do believe that having a president we can be proud of, and one who clearly represents the future and not some worn-out past, will make a difference in citizens’ faith in the U.S. and the way we move forward as a nation.

Could it be??

Naturally, when I mutter “PEOPLE!!” and shake my head in disbelief, I don’t mean you. You’re really savvy.

But who ARE these people – the one in three Americans who do not believe there is solid evidence of global warming and the full half of us who don’t believe pollution is causing the earth to warm? (All this from a 2008 Pew Research Council survey). And perhaps worse yet, what about the fact that only 41% of Republicans believe the earth is warming now – but 56% of Republicans know that most scientists think it is? (Gallup.)

Clearly, the scientists must be wrong.

Clearly, there must be reasons so many Americans don’t believe it, don’t care and (apparently) don’t care to listen to scientists.

I got my son’s Columbia University alumni magazine, (current issue not yet online, sorry) and to save the earth I kept it rather than mailing it to him. In the latest issue, the article The Deep Sleep sheds some light (heat?) on this subject. Columbia, kindly enough, has established a Center for Research on Environmental Decisions (CRED). Some of CRED researchers’ and analysts’ findings, briefly paraphrased below, indicate that we need to create much better public relations outreach on why Americans should act now to slow global warming… and why we don’t.

• We think it will be a problem for poorer countries, not so much the U.S.

•We have 52 senators from coal mining states blocking better federal policies – but coal, no matter how we position it, ISN’T clean.

•Some Americans’ values preclude dealing with global warming: I know it’s hard to fathom, but white, male, religious, conservative radio talk show listeners (yup) often don’t believe in global warming.

•Global warming is just… too vague. We haven’t seen the most catastrophic effects yet, so we focus on more immediate problems.

CRED researchers contend that people’s responses to global warming information can change based on small differences in the way the information is presented. For example:

•Doomsday scenarios, while terrifying, tend to turn people off and away. Better to focus on solutions.

•When proposing a solution, describe its benefits before its costs (Marketing 101, of course).

•Explain specifically how our planet has been damaged and what needs fixing. Forget all the nature talk – we place higher value on what we’ve lost than what we still have.

•Look at people’s values and address them. For example, the Christian right? Remind them of their duty to help their neighbor – including that poor soul living at sea level in the developing world.

•Tell people specifically how they can help. Which color Prius is best??

An Inconvenient Truth was a good start. But global warming is still very inconvenient, and we should make sure urgency outranks ennui in the American public.

Change is a pain. C’mon, admit it. Unless you’re one of those hardy, adventurous souls who’s currently stuffing your backpack for a long trip to the Arctic – oh, yes, after quitting your job and kissing your family goodbye, that is. The rest of us, sad to say, prefer the comfort of driving the same route home from work most days. Even if we hate to admit it.

Well, here’s news. Obama and McCain are mouthing the right words. “Change is coming!” Etc. Only thing is, the changes they’re promising probably aren’t the biggest curves ahead. Don’t spend your tax break yet.

No, the changes ahead will be more profound. Our basic confidence in the great economic engine isn’t gone, but it’s shaken. People are actually thinking about (next time) buying homes they can afford (and heat), about the merits of state colleges for their own offspring, about getting a smaller car, wearing a sweater (mittens??) at home this winter, and perhaps even buying less stuff in case times get worse.

The amazing thing? This may be all for the good. In our rush to trash our planet, we in the U.S. have consumed oil and gas, cows and fish, plastic, and ice cream (oops, that’s just me) at a truly alarming rate. What we’re seeing now is LIMITS. Limits that will prod us toward changes we’ve resisted, as a nation, as businesses and as individuals.

As in…

-All that money Wall Street was flashing around? Lots of it was fake, a bubble, a myth. The way it was “made” was something no one really understood, and now much of it is gone – actually GONE.

-Peak oil? How many of us have skimmed the articles and turned the page? Yes, Virginia, we will run out.

-Spending as fast as we earn? Oops. Not so smart.

I don’t think the American way of life is doomed, or that we’ll be living in huts in the dark anytime soon. Instead, I think we’ll need to look at how money, honest money, is actually generated and at how our incredible inventiveness can help us come up with technologies and systems for a more sustainable, perhaps more sensible, world.

It could be fun. Really.

Storms pass. Really, they always do.

Marketing is an interesting business when times get stormy. I’ve been doing this for awhile (okay, forever) so I’ve been through a few downturns and emerged with my company battered but intact. In the process, I’ve learned a few things, usually a bit late and always after a good deal of capital, both monetary and intellectual, has washed away.

What I’ve learned in general:

-Some companies will cut marketing budgets. Very few of the best companies will eliminate marketing budgets.

-Some types of marketing look smarter than others in a downturn – we’ve talked about this before – informative, feedback-based, solid, non-hype-y outreach is the way to go now.

What I’ve learned each time the economy has tanked since my 1979 college graduation:

-1979: I should have learned to type and skipped Tufts entirely.

-1987: Having too many of one type of client (commercial real estate development, in this instance) means that when that industry crashes, my firm may get as much as zero cents on the dollar. As, in fact, was the case. Urk.

-2001-2002: Oh, my my. Were we ever overstaffed! Were we ever too slow to downsize! And were we ever interested to see we could do as much work AND make as much money, with fewer people. Wow.

-2008: Panic is ridiculous. The markets are getting carried away now. Innocent people are selling their 401 (k)s and locking in huge losses. But I’m betting that, by about this time next year, we’ll have a reasonably stable, reasonably prosperous economy again. There’s too much government intervention, all over the world, to repeat 1929.

That’s it. I’ve had it.

Many people are glad they’re not in charge. Me, on the contrary… well, I’ve applied many times for the job of Supreme Ruler of All Things I Care About but apparently someone else is more qualified.

Like George W. Bush.

Or Sarah Palin. (A note from one of my sons’ blogs: Google has reinstated its 2001 search index as a birthday celebration. “Sarah Palin” appears a total of ZERO times. Even my then-10-year-old had four listings in 2001.)

In any case, I respectfully withdraw my application to run the world. I’m going to lower my sights and do what I can to improve my country and my own life: save aluminum foil and rubber bands, perhaps.

Seriously though? Within my own weeny sphere, I’ll keep plugging to build business for us and our clients, I’ll pay my youngest’s tuition so he has a chance to get the job he wants someday, and I’ll vote. And blog. And… okay, continue to bemoan the worst of the greed, the ignorance and the blind allegiance to All Things Foolish that made me apply to be Supreme Ruler of All Things I Care About in the first place.

I’d be obfuscating – okay, lying – if I said I weren’t watching the stock market AGAIN today, even though my “money” (like the quotes? that’s a new addition) remains for the most part in the same old mutual funds, melting a little more each day even as I repeat the mantra, “this is no time to sell. this is…”

But for a couple of days I KNEW NOTHING.

Yes, yes, it’s important to stay aware of what’s happening around us right now, including the quaking economy and the this-is-getting-really-personal presidential election. But I escaped it for the weekend by neither looking at a newspaper or TV news nor using a computer (indeed it’s possible – just travel to the middle of a large lake in a good sailboat and forget that Palin is hinting that Obama is a terrorist, and that one’s theoretical retirement is looking like a shrinking speck on a distant horizon).

Guess what? IT FELT GOOD not to know. And this is being said by a news-junkie-don’t-call-me-a-nerd-bookworm-I’m-a-little-worried-oldest-child.

I’m planning yet another ignorance interval. I promise that it won’t be a work day.

I’ll bet you haven’t thought about T.S Eliot’s “The Love Song of J. Alfred Prufrock” in awhile. Okay, maybe ever. But listen to this!

… time yet for a hundred indecisions,
And for a hundred visions and revisions,
Before the taking of a toast and tea.

This morning, standing in line to purchase my $3.52-plus-tip latte, I thought “But we’re going to have a recession! No! A DEPRESSION!” but I bought it anyway because it’s really good. And I’m really tired and, well, feeling a little negative this morning.

But this is how it begins. Do I dare to eat a peach? (Yeah, Prufrock again.) Day to day, most of us trust the government to be foolish BUT NOT THIS FOOLISH. We trust the markets to not shoot down to negative numbers (hmmm, can that happen?)

And then when we find out we’re wrong, we stop buying lattes, we don’t travel as much, we don’t buy that new house. Bosses don’t hire new people, people don’t start new businesses… and the economy tanks. Its engine relies on all of us.

So THAT’S why I’m doing my part. Lattes for the sake of the nation.

Please… do your part. Your government lacks the will!