I am not a Nonprofit Resource Specialist like my colleagues who have been writing on this blog over the past year. I’m a commercial banker with Bremer, spending my days working exclusively with nonprofits with their financing and depository needs. The past few weeks have been challenging for my clients as they sort through economic reports wondering if their money is safe and if they will be able to obtain financing should they need it. News reports may have some believing that no one business or individual is able to obtain financing and the financial economy will collapse tomorrow. Not the case! I’ve been in the financial arena for 23 years and vividly remember working on a currency trading floor on Black Monday - October 19, 1987, when the Dow Jones Industrial Average (DJIA) dropped 22.6 percent - in one trading session! Stock markets around the world, beginning in Hong Kong, crumbled that day, and the days that followed were just as tumultuous. An over-inflated market, combined with program trading and pure emotions, were a few causes noted for the collapse.
Individuals and businesses had the same fears then as they do today. Fortunately, global efforts helped shore up the markets and within time individuals and businesses were singing the praises of the international stock markets. Look for the same to happen again. Yes, market information (accurate and inaccurate) is being delivered through a multitude of channels, 24/7, and at lightening speed (much different than 21 years ago). Yes, emotions are high as portfolios are shrinking, and businesses and individuals are hurting because they overextended themselves. Fortunately, more of us around the world like to make money rather than lose it. Those individuals and businesses who managed wisely (yes, there are plenty!), together with coordinated global efforts, will put the markets back on track.
Kelly L. Elkin, VP Nonprofit Banking, Bremer Bank
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