The Continuing Backdrop and The Importance of Forgiveness

While there is general euphoria over what the Fed did yesterday, I don't understand how it improves liquidity that will make its way into your pocket or mine. My understanding is that there was a massive confidence issue among the banks. Maria B. on CNBC made a comment that the US took 25% of its balance sheet and committed it to the financial markets by lending "up to $200 billion of Treasury securities to primary dealers secured for a term of 28 days (rather than overnight, as in the existing program) by a pledge of other securities, including federal agency debt, federal agency residential-mortgage-backed securities (MBS), and non-agency AAA/Aaa-rated private-label residential MBS. " Click here to see the full release.

I'd like to hear someone address what happens in 28 days. Don't get me wrong. I think that the action was necessary, and for that necessity, we must understand that the financial system is tied in a huge Gordian knot (hence the picture). Accordingly, I see yesterday's reaction to be manic in nature. The realities of the financial system still have to be worked out. Here are some of the lingering issues (not to sound too depressive!):

• Housing values are under pressure--pressures homeowners and erodes tax base;
  
• Job losses are mounting;
• Job creation is slowing and is likely under-reported over-reported;
• Discretionary income is decreasing due to food and fuel costs increasing;
• Inflation is mounting.

Notice that I didn't mention anything about Elliott Spitzer! I generally take no amusement in the misfortunes of others despite the seeming deservedness of the misfortune. There's a reason why the aphorisms, "People who live in glass houses shouldn't throw stones," and "The pot calling the kettle black." So I'm just reaffirming the aphorisms, though I'd be lying if I were to say that I did not find the information titillating. News passing this moment that he is resigning as governor.

All of us have lapses in judgment-some lapses are of greater magnitude than others. Seldom are our lapses made so public. There's an irony in relationships here. The best relationships are founded in love and compassion: unconditional, love and compassion. To really test the unconditional quality of that love and compassion there has to be some condition to test it. (I'm not talking about behavior such as emotional, sexual or physical abuse). And if there is an opportunity to forgive, that means that the relationship's tenets have been transgressed.

When presented with these opportunities that shake the foundation to its roots, that is where the relationship is tested. A rich physical and emotional relationship, to include enjoyable sex, mutual interests, delightful conversation do not test our relationship. These elements certainly enrich our relationships. Our relationships are tested when we engage in our human fallability and hurt the people we love.

My point: Do not mistake women or men, in a relationship transgressed in a way that causes deep hurt, who stay in a relationship as weak. The truth is these men and women who can find it in themselves to forgive his/her partner and work on repairing the relationship demonstrate great courage and great humanity--for they are demonstrating that the love in the relationship was indeed unconditional through their capacity to forgiveness.