Is the Week Over Yet?

Image via The Economist

Tonight, the Wall Street Journal Front Page reads:

• OCTOBER 11, 2008

Wild 

Day

 Caps Worst

 Week Ever

 for Stocks

Dow Swings 1019 Points in Index's Most-Volatile

 Session; Despite 'Fire-Sale Prices,' Buyers Mostly Stand Back

Today, neither of the CNBC stars Maria (Bartolomo, image via CNBC) nor Erin (Burnett, image via CNBC) could do anything to bring back good spirit. In fact,  CNBC was probably the worst channel to watch/listen to this week.  It felt like your favorite team getting beaten big time in front of the home crowd. 

We seem to be struck by a perfect storm.  Years of sacrifices to save hard-earned money have simply vanished.  While the so called experts keep on repeating that we should not panic, reality is that with 401(k)s (RRSPs in Canada) worth significantly less, real estate materially depreciated, household debt level an unseen level, a limited access to additional credit and a now the inevitable recession, many families throughout the Western World are set to change their lifestyles.

Naturally we have financial preoccupations.  But the human side of what is going on is even more stagering.  For many, the actual situation means postponing life long dreams, important projects, it means not being able to support a son/daughter through college, the lost of a house, etc.

I remember my late grandmother's recollection of the Depression.  Often, what made a difference was the solidarity that the community showed.  I am neither suggesting that we will have a depression, nor that we should ditch the free market economy, but I believe we need to start looking at things in a less individual fashion.

ZeFridge, the company I founded in 2007 will launch its platform in less than a month.  So far, it was funded by its founder and it was about to launch a first round of external capital financing.  One can imagine the topic of choice of many people I know this week... What a timing!

Well, although I am sadden by the outlook for the upcoming year and I know that the bar will be high to convince VCs that we are the next big thing, I think the timing for ZeFridge is a good one.  Because ZeFridge is Social Networking with a Purpose, it may actually be an efficient tool for families in this trouble time.  We are a small company, but we see big things.  Not only do we want to create value for our shareholders, we also want to be a contributing member in the community and the timing may actually be the right one to demonstrate that.

Stay tuned!