On Wednesday I received an e-mail from Rachel Katz, Analyst for Global Philanthropy encouraging me to write my blog post this week about the current economic climate, especially given that economist Nouriel Roubini (who was one of not many economists that correctly forecasted the 2007 economic collapse) just this week warned in an interview with Bloomberg that a second and perhaps worse economic collapse is looming now if the world economies do not break up and reform the banking, investing, and other financial industries. He is concerned that since no real action has been done yet to the financial industries, given the world economic collapse; to keep what caused the 2005 collapse from happening again; and because Europe's economy is tenuous right now; and because America's economy is recovering slowly and mildly - not enough has yet been done to avoid another now potential second collapse. Roubini's concern is world governments won't have enough resources, if another (and if larger) collapse occurs to either stave it off or rebound from it easily.
I read an article that Global Philanthropy's President, Trevor Neilson, wrote for, this week, What Roubini Just Said and Why Those Who Work in Philanthropy Should Listen. His article is the reason that Ms. Katz requested that I consider blogging on the world economy.
Despite Ms. Katz's e-mail (simply letting me know about the article and requesting that I blog about the topic as their office finds Mr. Roubini's warning so compelling) I was not going to blog on this topic but two things changed my mind. First, I have seen Roubini speak as a guest on The Charlie Rose Show(PBS) and his arguments are logical and compelling. He is not a politician, nor a mouthpiece for one party's ideologies or another. Second, as this blog exists solely to assist nonprofits (which by virtue of their business model have few resources at their disposal) a warning (even one that might be hasty and unwarranted, in the end) can be prudent if not perhaps ultimately vital.
So, with a healthy dose of open-mindedness, faith, and balance (check out other reputable, credentialed, seasoned economists forecasts; and other reputable and trust-worthy sources for their opinion on the current economy and its potential), I ask you to please consider the following.
Ms. Katz stated in her e-mail, "We believe that now is a crucial moment for nonprofits to be prepared to weather the storm, particularly as social services continue to be cut at the very time they are needed most."
In his article for The Huffington Post (link, above), Neilson wrote, " And at the very same time, in response to the financial crisis, decreased tax revenues and massive budget deficits, social services are under siege." after describing the still churning foreclosure monster, slow job recovery, and the unemployment rate in America. He then recommends three things that nonprofits can do, now - to stave off being harmed by a second economic collapse. His second and third recommendations are excellent. He says at the end of his article, "Let's hope that Roubini is wrong...".