Posted by Phil Keithahn on Thu, May 20, 2010 @ 08:42 AM
Be very wary of policies, predictions, and pronouncements from Washington DC that offer what usually turns into the "99% Solution for the 1% Problem."
What does this mean?
In my banking experience, less than 1% of the people abuse or misuse a product or an opportunity. But when that abuse gets publicized, public pressure results in costly Washington DC solutions for the abuses of less than 1% of Americans...paid for by taxing the earnings of 99% of our taxpayers. As my dad often said, "Don't abuse the privilege of being stupid, or the privilege will be taken away."
Unfortunately, we live in a world where politicians pass legislation, lobbyists and attorneys develop new laws, bureaucrats send out regulations, and directives, that never eliminate risk...let alone the abuser. They simply make life more complicated and make business more expensive for the average, ordinary tax-paying citizen to pay for the unethical, unintelligent, or unforgivable abuses of less than 1% of our citizens. By the time the "simple law" in Washington, DC reaches Main Street America, it has morphed into thousands of pages of forms, checklists, procedures, and other documents that suck the time, energy, and talent, not to mention money from our nation's hardworking citizens, farmers, and small business owners...and community banks!
Let's hold the right people accountable. This nation cannot afford and should not continue developing 99% solutions for the 1% problems...or worse yet....the solution that is looking for a problem. We can never eliminate fear, mistakes, let alone risk. But we can use better discipline to reduce our reliance on policy, procedure, regulations, and rules that limit our freedoms and tax our lives.
One final thought for you to remember. In spite of an economy that has hurt our customers, our communities, and our bank, we are all survivors. ProGrowth Bank will continue donating money and time to local charities, we will continue providing you with great service, and we will continue listening to you and working with you to move forward. Have a great summer!
Posted by Phil Keithahn on Wed, May 19, 2010 @ 07:41 AM
HEADLINE: Minnesota Bridges are Structurally Unsound...but none have collapsed!!
On August 1, 2007, I was in England celebrating the 100th Anniversary of Scouting with over 50,000 Scouts from more than 180 nations. On that same morning, the 35W bridge collapsed in Minneapolis/St. Paul. Within 30 minutes, we received word in England about this disaster, and about the heroic efforts of people who worked together in times of catastrophe to recover. What a miracle of faith in action!
But what has happened since then? The government has had its experts and investigators analyze the bridge collapse, develop theories, assign blame, and begin rating all bridges in the state as to whether they are safe...or "unsafe and unsound."
And guess what? In spite of all these "expert ratings" for bridges that are "structurally unsound", not a single bridge has collapsed. ZERO. NONE. NADA. In fact, during my lifetime (52 years!), I can't remember another bridge in Minnesota, let alone the rest of the USA, that has collapsed. There may be aging bridges that have problems, need to be updated, or need to be renovated, but NOT A SINGLE BRIDGE HAS COLLAPSED.
Part of moving forward with confidence as our nation recovers from the recession is to realize that life is full of risks. Life is full of mistakes. Learning, progress, and success only occur after we make mistakes. When you hear or read expert opinions after the fact talk about negative things that make you feel afraid, remember that they rarely predicted the problem before it occurred. In fact, when they did predict, their predictions were more often faulty than correct. So focus on the positive, pay attention to the things that you control, and accept personal accountability for your actions.
Posted by Phil Keithahn on Tue, May 18, 2010 @ 03:23 PM
Our family recently visited Northfield, which promotes itself as the "Home of Colleges, Cows, and Contentment." You could probably make a similar statement about most communities in South Central Minnesota. It's a wonderful image of happiness, which is a feeling that many people would like to move towards, as the economy recovers from recession.
The current recession is the 22nd official downturn in our nation's economy since 1900. Although the average recession since 1900 has lasted 14 months, the recession that started in December 2007 has now lasted 21 months, second only to the "Great Depression" as the longest economic downturn.
What does this deep recession mean for you, for me, for our communities, and for our nation?
First, we need to work together, help and support each other, and remain trustworthy, loyal, and honest with each other.
Second, we need to work hard to set a positive example for our family, friends, neighbors, and communities in how we are going to respond, recover, and refocus our efforts on the truly important things in life.
Third, we need to recognize that everyone is hurting. Everyone. How can we feel good in the midst of 10% unemployment, a 20-40% decline in housing prices, a new health care bill that is particularly expensive for small business owners, record-setting federal deficits that will eventually lead to higher inflation and more taxes, not to mention more rules and regulations that Washington DC is dictating to the entire country?
We are all hurting...BUT...we will all move forward together. We will feel better...and eventually we will all feel good!
Finally, it means that we have to BELIEVE in ourselves and each other...that we WILL survive and eventually thrive as we recover. ProGrowth Bank and the citizens in the communities we serve have survived 22 recessions in the last 110 years. Every generation has faced severe challenges, and has recovered. In the words of General George S. Patton, one of our country's greatest generals, "Failure is not an option." In Gaylord, Nicollet, Mankato, and North Mankato, I believe that our citizens have more faith in ourselves than we do in Washington DC's so-called "solutions." Let's focus on building up our communities rather than tearing down each other.