If you or a loved one is struggling with life challenges-a career change, divorce, grief, addictions or compulsions-give us a call and let the Sedona Intensive give you the help you need. Don't face these problems alone. Let our support team of professional therapists help you today.

(800) 647-0732 or www.sedonaintensive.com.

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Extended Sessions
There have been so many requests recently, especially due to the rollercoaster financial markets, crumbling housing crisis, and other life challenges, that we at the Sedona Intensive™ have begun to offer Extended Sessions. In weekly sessions we are able to see how you and your planets in angulation and aspect are compatible or incongruent to what’s going on in the world. We take the planetary movements for the week ahead and see how Void of Course Moons, retrogrades, New and Full Moons and Eclipses affect you personally. Having this information can mean the difference in being caught up in pandemonium and panic that is not applicable to you but you don’t know it.

Call the office at 800-647-0732 and inquire about the Extended Sessions.

ELECTION DAY—November 4th—DON’T FORGET TO VOTE

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Light Foundation Scholarship Fund Needs Your Help
There are a lot of people who need help; oftentimes it is getting sober or straight and in other instances it is coming to terms with lifelong issues that keep them from being authentic. The Light Foundation, a not-for-profit IRS-approved organization, would like for you to be a part of this effort to help others clear away the wreckage of their past through help in the Sedona Intensive. All donations are tax-deductible. 

Please send donations to:  Light Foundation Scholarship Fund, PO Box 50, Sedona, AZ 86339

A WOMAN WE ADMIRE

BASIA CHRIST
A couple of years ago I spoke at The Inside Edge, a Breakfast Club that meets every Wednesday from 6:30 – 8:30 A.M. at UCI’s University in Irvine, California. The Inside Edge hosts speakers who are proactively trying to alter the consciousness of the World View by writing and speaking out about global issues that can change humanity everywhere. On January 7, 2009 I will be speaking on Being Authentic in an Unreal World.

I meet Basia Christ at that speaking engagement and she and the Sedona Intensive™ have stayed in touch, always asking one another, “What can I do for you?” Basia has written an incredible book with stories from women who make a difference in the world. The book is Women Rising Now. To find out more about Basia Christ and her work go to www.womenrisingnow.com

The Alchemist and Paulo Coelho

Those of you who know me up close realize that nothing much fazes me. When it is time for some one to make their transition I shed a few tears, miss them a lot at first, and then go on with my life. When relationships break apart, I do an inventory, learn my lesson and move on. And most recently when the stock market fell precipitously I was taken aback as were most of us because I had put so much trust in institutions that I had taken for granted. It was only when I admitted to myself that I had caused what happened to me—banks and markets did not put me in harm’s way. I slid down the economic slope because of what choices I made, not because of crooked bankers and stock brokers. When I look inside and determine what I have to do to make my life and circumstances more secure, I find peace.

Which brings me to a book that I think can restore your faith in you and remind you that there is a divine design to your life and remind you to follow your dreams.

Paulo Coelho’s The Alchemist has been one book that has been a mainstay with me through a lot of trials and challenges for the last 20 plus years. It is. This inspirational fable by Brazilian author and translator Coelho has been a runaway bestseller throughout Latin America and extremely successful in America as well. Here is a button which takes you to his publisher’s site where you can download a chapter. I recommend that you buy it for yourself and give it as a Holiday gift for family and friends. http://browseinside.harpercollins.com

A Synopsis:

My Heart Is Afraid that it will have to suffer," the boy told the alchemist one night as they looked up at the moonless sky." Tell your heart that the fear of suffering is worse than the suffering itself. And that no heart has ever suffered when it goes in search of its dreams."

The Alchemist is the magical story of Santiago, an Andalusian shepherd boy who yearns to travel in search of a worldly treasure as extravagant as any ever found. From his home in Spain he journeys to the markets of Tangiers and across the Egyptian desert to a fateful encounter with the alchemist.

The story of the treasures Santiago finds along the way teaches us, as only a few stories have done, about the essential wisdom of listening to our hearts, learning to read the omens strewn along life's path, and, above all, following our dreams.

Proper Perspective

This past month’s global financial roller coaster has been enough to make even the toughest stomachs churn. There may or may not be a glimmer of light at the end of the tunnel, but we are being forced to dig deep for all the faith and trust we can muster to accept the old cliché, “We are right where we are supposed to be.” But truth be told, we aren’t in any different shape than we were several years ago when all of our home values were increasing at lightning speed. Subprime mortgages hadn’t been exposed as one of the worst ideas ever nor had the inflated price of houses been brought into real market value. The pendulum still hasn’t come to rest in center alignment and may not for quite some time.

I think it is safe to say, in the long run we needed this, or better still, we got what we deserved. Our recent national economic foundation had been built on quicksand and that foundation finally collapsed. And it appears many other countries made the same mistakes we did. Of course it hurts all of us and perhaps even forces us to make severe changes in what we value and how we spend money. More importantly however, it raises our awareness about how we all have the tendency to get swept away on the emotional rollercoaster of money markets, whether they are up or down. When times are good, we never think they are going to end and when times are bad we think they will never turn around. We can point fingers in blame or we can gain a more proper perspective by looking to see what individual roles we played in creating this mess and hopefully change our relationship with money, our dependence on financial institutions to take care of our money, but most of all, we can learn from our mistakes.

Andrew Bell

After the recent economic turmoil in America, the newfound patriotism and proclivity for change that was spreading across many parts of America has in many ways, died down, and been replaced by sheer bitterness, and party division. Barack Obama and John McCain, two men who represented such a profound change in direction for America, have allowed their campaigns to devolve into attack dog tactics and pathetic bickering. John the Maverick, and Obama the change artist, have sat by as their campaigns have become increasingly negative and in the process divided the nation. Furthermore, accusations of terrorism, racism and other profoundly repulsive insults have been lobbed back and forth, with no one coming forward to decry such hateful claims.

The United States is LOOKING FOR SOLUTIONS, not for the same old political doublespeak and repugnant tactics. We are facing a serious economic crisis, and this presidential campaign, which has gone on for way too long, should be focused solely on solving this crisis. Neither side wants to see huge unemployment rates nor a continued collapse on Wall Street; therefore it is the role of politicians to alleviate these concerns by immediately attempting to solve these problems. Many international articles have popped up declaring the end of America, as the world knows it. However, I believe that the United States resolve has proven itself to be too strong, to ever allow the disbanding of our nation. Therefore, it is our time to demand answers from many of these conniving politicians, to force Obama and McCain to refocus the presidential race on the issues, and to unite this proud country and prevent the few scared outspoken voices from dividing us. There is no doubt that we will face plenty of questions ahead, but we can only overcome these tribulations if we are united, and take full advantage of our mobilized workforce, and re-invigorated populace.

Our nation has proven both militarily as well as economically, that we can overcome seriously daunting challenges, and I believe that united and energized, we can surmount them again. Although the mainstream media continues to frighten us, and Wall Street woes, continue to define our lifestyle, the American spirit, when awoken, can rise above any problem, and I know, not just hope, that as a united and energized nation, we will prevail.

As I write this column, Dow Jones lost more than 600 points and has dropped well below 9,000, which is a decline of more than 5,000 points in one year. Financial guru Suze Orman opined on Anderson Cooper 360: it is as if we are all in a psyche ward and the doctors keep throwing meds at us, when what we should be owning up to is the greed that got us here in the first place.

This rollercoaster ride with the Dow Jones began under Mercury retrograde and it more than likely will begin to see some correction when Mercury goes direct October 15th. Although none of us likes to admit it, the world could not sustain the insanity of living on borrowed money thinking that the gravy train would never run dry.

There will be a New Moon at 5 degrees of Scorpio on October 28th which should usher in a new upturn in the markets and an official bottoming out of all sectors of the economy. Scorpio has been called the Great Healer and Great Redeemer. Let’s hope that when we start rebuilding all of us take responsibility for how we save more than we spend.

There will be a Full Moon at 21 degrees of Taurus on November 12th which promises even greater recovery as this lunation will be in favorable aspect to Saturn in Virgo and Jupiter in Capricorn. This makes for a Grand Earth Trine, and we can certainly use the stability of earth planets at this time.

Neptune goes direct at 21 degrees of Aquarius on November 2nd. Neptune is known to wreck greater havoc when it is direct in motion, so Aquarians born from the 8th to the 13th of February will be most affected, as will Leo, Taurus and Scorpio—fixed signs. Neptune is connected with alcohol and drug abuse as well as getting stuck in the spider web of a lover who means you no good.

On November 27th Pluto goes back into Capricorn until 2023. If you ever wanted a signal that the world is in major reconstruction follow the path of Capricorn for the next fifteen years. The mantra that I give the transit of Pluto in Capricorn is ‘brick by brick and stone by stone’.

Scorpio (October 23 - November 21)

For the rest of this month and into late November you sexy, seductive and suggestive ‘stingers’ get a big boost under the New Moon at 5 degrees of Scorpio on October 28th. Since you are known to be cautious with money and know how to hold onto it, you can make some safe bets financially under this lunation. If you have been feeling greater fear than faith lately, always remember that for ‘the love of money is the root of all evil’. Let the truth part of you breathe more easily at this time of the year. You deserve it. Just when you thought a good idea had turned sour, the red, red robin came hip-hopping into the game plan to change your luck. Don’t forget to thank your lucky stars!

Sagittarius (November 22 - December 20)

Now that Pluto is about to say ‘ta ta’ to you Sags for the rest of your life, you can begin to clean up the mess that the Great Destroyer has been making for the last umpteen years. This is a good time to separate the priceless from the worthless, and you can start the evaluation process with girlfriends, boyfriends and leaners, dreamers and schemers. You should have had a bump up under the New Moon at 21 degrees of Aries on October 14th. Look for job opportunities now that Mercury is out of retrograde. Although you are known to ‘laugh and the world laughs with you,’ it is time to tend to business and write your day-at-a-time action plan in ink and stick to it.

Capricorn (December 21 - January 19)

With Jupiter in Capricorn you may have had better luck in the recent economic global meltdown than any other sign. Your innate ability to conserve and run with caution protects you from the fast fall of water signs like Pisces, Cancer and Scorpio because you know when to fold and when to hold—without emotional overload. If there is going to be a Great Reconstruction period you Goats will be the ones at the helm. If you ever wanted to live in a time when life would be lived on your terms it will be from now through 2023. It’s about time that all of us begin to be responsible for our own financial wellbeing.

Aquarius (January 20 - February 17)

I hope you make hay while Mercury is in Libra until Election Day—Libra is an air sign and so are you Aquarians—because the New Moon at 5 degrees of Scorpio on October 28th and the New Moon on November 12th at 21 degrees of Taurus won’t do you much good. And the Sun in Scorpio until November 21 will slow you down as well. Treat the next 30 days like it is a vacation—go to work, keep a low profile at home and prepare for the better cycle after the Sun goes into Sagittarius. Neptune will be in Aquarius for another few years, so overall watch for the devil in sheep’s clothing.

Pisces (February 18 - March 20)

Both lunations, New Moon in Scorpio on October 28th and the Full Moon in Taurus on November 12 will bless you—give you a sense that things are not as bad as they appear to be. You’ve been reading here for a few years about all the sudden changes of Uranus in Pisces—and you know that Saturn opposing you in Virgo has been like a baptism by fire. I have watched Saturn move through the Zodiac taking no prisoners and as a Pisces I have been getting its cold and calculating signals that we Fish had best go back to the drawing board—we need a new set of plans and a drastic, radical makeover. Did you ever hear about reinventing yourself? Don’t fight it. The results will be spellbinding!

Aries (March 21 - April 20)

After that Full Moon on October 14th at 21 degrees of Aries, you Martians may be about ready to pull the plug on your latest dud. The powerful thing about you fireballs ruled by Mars is that we should never count you out. Rework the plans. Find a new course for the refi. Don’t sit and mope—hit the streets—opportunity always knocks loudest for Aries. The one thing about you is that you are not waiting for a handout or a free ride. If Moses could lead his tribe, make sure you know what you want yours to sign-on for. Retrograde Mercury cut you off at the pass for the last three weeks, but its now direction in motion. Go! Go!

Taurus (April 21 - May 20)

What I love about Taurus is that you always know to wait until everybody gets out their wallets to help pay for dinner, or gas for the boat or their share of the vacation rental. Besides being a bit too sensitive—but loyal to the Nines—you always have a knack to make sure that there is a hardness test to all schemes or bright ideas. Under the New Moon at 21 degrees of Taurus on November 12 you can look to recoup some of the dough you lost when the bottom dropped out of your money bucket. Brick-by-brick, stone-by-stone and dollar-by-dollar, you will be financially healthier than most, sooner. They can say what they want about your reticence to throw money around, but when the rest of us are wondering what happened to ours, you’re counting yours.

Gemini (May 21 - June 20)

Saturn squaring you from the picky, analytical sign of Virgo may have you feeling like you’ve got lead in your shoes. You’ve not been clicking on all cylinders for awhile and your usual ‘fast lane living’ has slowed to a snail’s crawl. However, the direct motion from Mercury in Libra in perfect alignment with you Twins and Neptune in Aquarius is blessing you with clear and conscious ideas. You are going to begin to see that Saturn has trimmed your sails because you are changing how you think and how you perceive things. When the Sun moves into Scorpio on October 22 your ideas will begin to gel and what you really want in your life shows up. Develop a little patience, not your long or strong suit.

Cancer (June 21 - July 22)

Just in time for Holiday planning you are going to benefit big time with the trine from the New Moon in Scorpio on October 28th to your Sun Sign. Likewise the sextile from the Full Moon in Taurus on November 12 is going to be a beneficial ‘thumbs-up’ as well. With the opposition from Jupiter in Capricorn make sure that you don’t have too many plates in the air or too many projects on your calendar. Since you are known as the sign of the Zodiac that yo-yos with your emotions so badly you could raise the dead, take a daily inventory for awhile to make sure that you are not over-reacting or expecting too much from others. In times of crisis there is no one better to take charge than you, but in day to day living you can make too much of a small incident. Chill.

Leo (July 22 - August 22)

Since nobody likes to take a little risk more than you do (unless it is your fellow fire signs, Aries and Sagittarius) or even a big gamble on a horse or a stock tip, even you have learned your lesson from the latest financial fiascos. Namely, putting your money where ‘too good to be true’ turned out to be ‘it wasn’t true,’ and you lost. Here’s where you are, astrologically, this month: neither the New Moon in Scorpio on October 28th nor the Full Moon in Taurus on November 12th has much good news for you about money because they are both squaring you (not a favorable aspect) and Neptune is opposing from Aquarius. My advice is to hold to what you have left and wait for markets to make a correction. Everything that has a beginning has an end, including a downward spiral of Dow Jones. Wait.

Virgo (August 23 - September 22)

I have it on good authority—like 45 years interpreting what the movement of the planets means—that Saturn in Virgo is refining you for a better life that lies up ahead. You may think that you can’t stand another minute of the deep and critical inspection of the Lords of Karma, but this too shall pass, hopefully with you having learned what not to do with jobs, relationships, investments and what a salvation a shift in consciousness has been for you. Good news! Better news! The New Moon in Scorpio on October 28th and the Full Moon in Taurus on November 12th are both going to lighten your load and give you somewhat of a reprieve from the heavy emotional stress of the Saturn effect. We are all learning how foolish our attachment to the abject material world has been.

Libra (September 23 - October 22)

A Libra client of mine called in the midst of the Mercury retrograde in the sign of Libra a few weeks ago to say that she felt like she had been stuck in a revolving door and could not exit, or it seemed as if she had been caught in a dream that turned into her worst nightmare. “Nothing has gone right for me in weeks.” Not only has Mercury running amok in a cunning, baffling and powerful adversarial position afflicted you ordinarily ‘cool cucumbers,’ but also Jupiter has been squaring you from the cold, detached and somewhat ruthless sign of Capricorn. Lay low and wait a few weeks for the worm to turn. When the Sun moves into Sagittarius at the end of November, you’ll be frolicking in clover.

Sarah McLean

How to Open Yourself to Your Life's Purpose

“Why am I here? What is my purpose in life?" Asking these questions marks the beginning of your search to finding your life’s purpose. Following the path toward a life of meaning and purpose is different for everyone. Here are some steps that have been taken by many who live a fulfilling life.

Become self- aware so you can recognize the point of transition. One of the keys to transitioning to a life full of meaning and purpose is acknowledging the nagging feeling that there was more to life than what you are doing now. Perhaps you don’t feel satisfied, and nothing on the horizon looks like it will do the trick. Do you sense there is a greater reason for being but don’t know what it is? Have you had enough? Does your job feel like a grind? Do you feel unfulfilled?

Ask yourself these important questions: Begin your day with meditation or prayer, and ask yourself these questions: What is my purpose in this life? Why am I really here? What is my heart’s desire? Then listen. The answers might not come to you right away, but be patient, and look for clues. Don’t try to come up with the answers intellectually, or figure it out; these are questions that you want to be answered in a more expanded way.

Listen to your inner voice above all. Listening to your inner wisdom, or your intuition, takes practice, and anyone can do it. Intuition is very real. It is your internal wise, yet quiet voice. You intuition doesn’t steer you wrong. When you act on your intuition and respond authentically to the cues around you, you’ll begin to trust your own wisdom and unlock the keys to your happiness. Meditation is a key to unlock your intuition. By spending time in silence every day through meditation or prayer you can expand your awareness and quiet the noise and distractions from the outside.

Notice what you are attracted to, pay attention to your internal yes and no, or your yums and yucks, and act on them. Your body is wise and intelligent: while you are reading this, it exchanges oxygen molecules for carbon dioxide molecules, constantly replaces the cells in your body, monitors and controls your temperature and your heartbeat, and so much more. Your body is wise; it is your best friend. It communicates with you through sensations of comfort and discomfort. You can tune into and become more aware of your bodily sensations, and really pay attention to what you are attracted to. Becoming aware and honoring how you feel in each moment is vital to a successful journey toward a more fulfilling life.

Tune out the “should’s” from those around you. Take a leap of faith and trust in your dreams. A bad habit is when we are dependent on others people’s opinions of us, and defer to their idea of what we should do rather than following our dreams. Finding your purpose sometimes means going against the advice of close friends and family. ‘

Gandhi once said, “There are times when you have to obey a call which is the highest of all, i.e. the voice of conscience, even though such obedience may cost many a bitter tear, and even more, separation from friends, from family, from the state to which you may belong, from all that you have held as dear as life itself. For this obedience is the law of our being.”

Look for clues and be open to possibilities: Clues to your life’s purpose might be found in the answers to these questions: How do you spend your free time? What were your hobbies were when you were a kid left to express your own creativity? Perhaps you’ll find clues in books or cds that catch your attention. Spend time with people who are living their dreams and are talking about things you are attracted to or are thinking about. When you are onto something, synchronicities may become more frequent, that is a big clue. An opportunity to find and express your passion might be revealed or serendipitous event that reminds you of what's important and what makes you happy.

Richard Bach, author of Jonathan Livingston Seagull writes: “Nothing happens by chance, my friend... No such thing as luck. A meaning behind every little thing, and such a meaning behind this. Part for you, part for me, may not see it all real clear right now, but we will, before long.”

Notice who you admire, and put your attention on what kind of person you want to be. You might admire your mom, or grandfather, or a mythological or biblical figure, or a world leader or boss. Make a list of who they are and what qualities they have. Those who you admire are showing you the qualities that you can bring out in your own life. What you put your attention on grows. So check your list and aim to embody the qualities of those you admire.

Be patient. Trust the wisdom of the universe. You will sense that you are onto something when you experience joy or peace in the moment, feel energized by your activity, or sense that you are being supported in your efforts by the universe, nature, God or your higher power. Know that life is on your side. Have faith and patience. Be open to signs and wonders, coincidences and opportunities. Keep your commitment and take small steps to make it happen. When you are on the right path, there is a flow that happens: You think of someone and they call, you have a desire to do something and the opportunity presents itself, and throughout the day, you begin to feel a sense of gratitude for this life. This will help you to develop great faith in the creator that you are being led in the right direction.

Practice gratitude. Putting your attention on what you have and then asking for what you want will keep you from regretting the present moment. Grateful people do not deny or ignore the negative aspects of life. According to the experts, it's easy to regret the time you've spent being unhappy or unfulfilled. Research has found that those who practice gratitude report higher levels of positive emotions, life satisfaction, vitality, optimism and lower levels of depression and stress. The disposition toward gratitude appears to enhance pleasant feeling states more than it diminishes unpleasant emotions.

Steve Jobs, the founder of Apple Computer, shares how he found his passion:

"I'm convinced that the only thing that kept me going was that I loved what I did. You've got to find what you love.... Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don't settle. You have to trust in something - your gut, destiny, life, karma, whatever. And much of what I stumbled into by following my curiosity and intuition turned out to be priceless. This approach has never let me down, and it has made all the difference in my life."

How do you know when you are on the 'right' path? Here are some of the signs people cite:

"It took me quite a bit of whole-body tuning-in to learn to feel it, but there's a physical sensation of sweet ease in the center of yourself, between your chest and belly, that will let you know you are moving in the right direction." Gay Hendricks, author Conscious Loving.

"The first sign would be a feeling of general happiness and satisfaction. If you drag out of bed in the morning and can barely face the day, then you're definitely not on the right path. If you hop out of bed and you are enthused about what you are doing, then you are." --Deborah King, Ph.D., author of Truth Heals: What You Hide Can Hurt You.

In his book and DVD, The Seven Spiritual Laws of Success, Dr. Deepak Chopra shares:

"We all seek our unique destiny, our place in the cosmic plan. It is known as dharma and it is more than seeking work that you love. The root of the word 'dharma' in Sanskrit means 'to uphold.' This is a valuable clue. You know you've become part of the cosmic design when the universe upholds and supports you. Every principle of nature comes to your aid, every power supports you spontaneously.

"The universal mind choreographs everything that is happening in billions of galaxies with elegant precision and unfaltering intelligence. Its intelligence is ultimate and supreme, permeating every fiber of existence from the smallest to the largest, from the atom to the cosmos. You are an impulse of the universe."

"Everyone has a purpose in life, a unique gift or special talent to give to others. When we blend this unique talent with service to others, we experience the ecstasy and exultation of our own spirit, which is the ultimate goal of all goals."

Sarah McLean, founder and director of the Sedona Meditation Training, was the education director of the Chopra Center in California and has taught hundreds of people to meditate. Find out more, call (928) 204-0067, or visit www.SedonaMeditation.com.

Bill Sharon

Deleveraging.

Deleveraging. That’s a word that we are likely to hear over the near term as the bailout and rescue plans around the world attempt to stabilize the financial system but have little effect on the contraction of economies. In less obtuse terms, the wealth that was created on paper without any underlying assets is going to see a steady decline in value. Insurance policies (CDS’s) purchased to hedge against these losses will be settled for far less than their face value. Companies that used derivatives and debt financing to bolster their bottom lines will see a decline in their profits and their stock value.

None of the plans that the central banks are implementing will stop this process from happening. The efforts that are currently underway are designed to “unclog” the credit system but even Mr. Bernanke admits that this will take some time; banks are actually looking at creditworthiness with a high degree of skepticism and they will likely be very choosy about who they lend their money to for some time to come. In the meantime, we are starting to hear proposals that will directly affect people who are struggling to stay in their homes. The economics of this makes sense although we will likely hear cries of “socialism” from some of the political class and we will find that there is some resentment from those who have been paying their fixed rate mortgages for the past twenty years. One way or another, we are going to reduce the level of debt in the United States. Some of it will be very painful.

As we go through this process it is very important that we understand how our financial system works and whether or not there are fundamental changes that we want to make as we go forward. One of the key components of the existing system is interest. Banks make money by charging for the use of capital. The problem is that when a bank loans money it “creates” the principal (to understand how this creation is done see link but it does not create the interest. Here’s a simple example:

You go to the bank and borrow $1,000. The interest rate is 10%. The bank puts the $1,000 in your account but does not create the $100 that you will need to pay back the loan – it doesn’t exist. If you multiply that small transaction by hundreds of millions you can easily see that there is a great deal of money missing in the economic system; it necessarily becomes out of balance. A “bubble” is the only way that the economic system can right itself – it inflates the value of something (internet companies, real estate, etc.) in attempt to generate the money necessary to pay the interest. Viewed from this perspective it becomes clear that bubbles are a necessary component of the current economic system. It is no surprise that they occur with regularity.

I would suggest that it is not useful to argue about whether this is a conspiracy theory or some grand design by the few to control the many. I’m not particularly enamored with seeing myself as a victim and I don’t think that approaching these issues from the perspective of an aggrieved party is particularly useful. What is constructive is understanding how something works and making a determination as to whether it should remain the way it is or be changed.

Banks need to make money to function. The economic concept of charging for the use of capital is not going away anytime soon but perhaps we should consider creating the money to pay for that use at the same time that we allow people to take out a loan. In a new model for banking that would significantly reduce the need for bubbles, the interest could be created at the same time that the loan was created. In our very simple example above, instead of creating only $1,000, the bank would create $1,100. It would keep the $100 and either loan it to someone else or use it to go out and buy printer paper or pencils. In doing so the interest would be in the system and available to be earned by the borrower and paid back to the bank.

A more fundamental concept is also in play here. The lack of money available to pay the interest has a divisive effect on all of us. We are competing in an environment of scarcity. People tend to behave badly when there isn’t enough to go around.

The solution to this problem is not more regulation (although there is no doubt that the rules for ethical participation in the marketplace need to be reinstated). The history of regulation is that it slows this imbalance from accelerating in the early stages of implementation, but then human beings become very creative in finding ways to develop markets where the regulations don’t’ apply. Furrowing our brows and vowing to do better, while perhaps not ingenuous, won’t work. The system is designed to create bubbles.

In the meantime, we have deleveraging. We are discovering that all the wealth that was created is evaporating and the system will continue to reduce the value of real and derived assets until it approaches some level of balance. And then, unless we change something, we will start all over again.

Bill Sharon has been conducting seminars, workshops and consulting assignments in the area of risk management for the past 12 years. He has 25 years experience in the Financial Services and Marketing/Communications industry in a variety of "C" level positions and consultancies. He is featured in numerous industry magazines including CIO Magazine, Business Finance Magazine, Business Credit Magazine, and has authored an executive briefing on managing risk in marketing services published by the Cutter Consortium in May 2005. He can be contacted at bsharon@sorms.com.