With the eminent collapse of our economy, it's becoming more and more evident that we need to learn some lessons that will guide us as we go forward.  Now, one of my worries is that many of us will learn the wrong lessons - specifically as it relates to risk-aversion, fear of creativity and innovation and the rise of our ever-present internal beast, known as individualism.  

Andrew Oswald, a professor of economics at the University of Warwick, has a more poetic way of making the same point. Oswald is a pioneer of a field that might be called "happiness economics"--the study of the interplay between money and human satisfaction. His rigorous academic work confirms the rhetorical advice that we hear in our religious sects and from our shrinks--the relentless pursuit of wealth may fill your bank account, but it will leave you empty as a human being.  

The curse of humanity is that people feel compelled to look over their shoulders. Oswald further states that, "happiness and self-esteem depend on rank and relative income. We are consumed by relativism. If your neighbor drives up in a new Lexus, and you're still driving the Toyota that you were perfectly satisfied with yesterday, you start to become dissatisfied."

So don't use the financial crisis as an excuse to stop taking chances or downsize your ambitions. But do use the crisis as an opportunity to take stock of what really matters--and to stop looking over your shoulder.  Just remember - we are all in this together.

In an exclusive conversation with Charlie Rose, Warren Buffet gives a clear, concise, and rational reason why our economy is in turmoil (certainly worth watching!):



Cheers!

Robert