Just Keep Swimming

Children and parents familiar with the movie "Finding Nemo" may remember the lovable character Dory who possessed an enduring level of optimism, but a bad case of short-term memory loss.  As we continue to emerge from the financial crisis, many people are developing this "Dory Syndrome" in anticipation of good economic times ahead. However, the risks that we faced last year have not yet been fully resolved.  Here is what was reported in today's Wall Street Journal.

While policy makers breathe a collective sigh of relief, they're making little progress in addressing deeper flaws that the crisis laid bare: an unwieldy banking system, unreliable financial plumbing and a global economy that encourages and depends on heavy borrowing by the U.S.

Bankers and regulators say that fixes require careful consideration. But as the darkest days of the crisis fade from memory and the world's biggest banks get back on their feet, political impetus for reform may be waning. "We're wasting the crisis," said economist Richard Portes of the London Business School.

Our collective short-term memory seems to be failing us as we heed Dory's advice from the movie - "Just keep swimming!"  While certainly good advice to those looking to simply survive a crisis, we cannot deny the looming risks that remain ever-present.