Three Floyds Dark Lord Day may end up being one of many permanent changes resulting from the COVID-19 crisis. The event was postponed in 2020 and I can find no information on the festival for 2021. While there have certainly been more material losses in all of our lives than a beer festival, if the event is over permanently it’ll be a serious loss to the Region.
Thousands of craft beer geeks from around the nation, and some even from foreign countries, traveled to Northwest Indiana each April/May to obtain a beer that was once the highest rated in the world. The combination of the beer’s limited availability, happy festival goers and outrageous music created an event aura that was something to behold.
I remember my first year getting to go to the festival. My “legendary” career as a girl’s rec soccer coach had dominated my spring Saturdays for six years, but with my daughter going into high school my coaching commitments ended and I was able to finally join my buddies for more adult pursuits.
The scarcity culture of the craft beer industry was near its peak at the time, and many beers from breweries around the country were nearly impossible to obtain. My group’s day started by convening at a Schoop's for breakfast, after which we boarded a party bus where I was immediately offered tastings of rare beers as everyone on the bus had brought their most treasured offerings to share on this special day.
As I got to the fest the beer sharing continued when, while waiting in line to get in, I met many new friends from around the country who were happy to offer their impressive beer collections to us actual NWI natives. The beers were delicious, most of them were also very strong. I did not pace myself, my party ended early; in the end all the tasty, rare beers were too much of a good thing. Lesson learned.
“Too much of a good thing.” We have all experienced some version of this paradigm, and I think we may be living through a collective economic form of this right now.
The COVID-19 crisis was unlike any other economic crisis experienced for multiple generations. I believe the government response to the crisis was borne out of the 2008-2009 financial crisis combined with a growing, if not openly acknowledged comfort and policymaker understanding of Modern Monetary Theory (MMT).
As governments at all levels began implementing public health measures, such as lock downs and social distancing orders, the Federal government and Federal Reserve reacted by flooding the economy with money to steady markets and support consumer demand. It’s clear to me the lesson of the 2008-2009 crisis was “go big,” and MMT provided an understanding as to how. The policies appear to have worked, markets stabilized, employment recovered, economic catastrophe averted.
Policymakers, however, did not stop while they seemed to be ahead. The number of programs intended to inject money into the economy is staggering. The Federal Reserve is backing loans, buying bonds, keeping interest rates at zero and executing other more obscure stabilization maneuvers. The Federal government has passed several rescue packages, sent multiple checks to most Americans and now President Biden has proposed a $6 trillion budget under the guise of more recovery. Just about every family I know has more net worth right now than ever before. Financial security for all is a noble goal. We all like money, and a higher net worth is a great thing. Who would ever say otherwise? Then why are so many investors I talk to each week feeling what can only be described as anxious?
I believe Americans in general are the most financially intuitive people on the planet. Our massive, mostly laissez faire economy has created a population of clever consumers and investors. We may not all understand the nuances of finance, but we do know when something just seems off.
I believe the government under both President Biden and President Trump deserves kudos, and the Federal Reserve has executed some brilliant policy maneuvers. But I’m concerned if the stimulus and monetary tricks keeping going much longer Americans are going to go from financially anxious to financially scared, and scared consumers and investors aren’t known to be the most rational. Most times, too much of a good thing has consequences, one way or another.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stock investing includes risks, including fluctuating prices and loss of principal. Marc Ruiz is a wealth advisor and partner with Oak Partners and registered representative of LPL Financial. Contact Marc at marc.ruiz@oakpartners.com. Securities offered through LPL Financial, member FINRA/SIPC.
