So after Bear Steans, Lehman Bros., and Merrill Lynch (that’s just this month), today we all woke up to the news that the United States government took control of American International Group (AIG) for a loan of $85 Billion.

For those of you who aren’t agog at this news, picture this: The government takes over the NFL, Major League Baseball, the NBA, and the NHL because of all the stupid trades and draft choices each of the individual teams made. While the fans sit with their mouths hanging open and wondering what to do on Sunday, “commissioner uncle Sam” will sell each team to a new owner – one at a time.

Some teams might end up in Europe, Asia, India, or even the Middle East (not Iran of course.) The NY Yankees might even end up in Dubai!

Afterwards, sports in America will never be the same. How’s that grab ya?

Of course, John McCain says the fundamentals of the Economy are sound. The Bush administration has been saying it for years. (oh, the national debt just ran past $10 Trillion – remember when Ronald Reagan tried to explain what $1Trillion was? ‘It’s a pile of $1 bills reaching all the way to the moon!’ Where’s does $10 Trillion go? Mars? It’s a good thing Bush made it a goal to get there then.)

No, Obama’s work as a community organizer doesn’t qualify him to be the President any more than Sarah Palin’s being across the Bering Strait from Russia makes her a foreign policy expert. Distorting or denying reality has become something many American and World leaders have become too good at.

Dick Fuld, head of Lehman Bros recently reassured everyone by saying that “Lehman is well capitalized.” Before filing Chapter 11, it’s stock fell to 24 cents and employees were drinking tequila and passing around resumes in the trading room.

Customers – the public – employees – will accept reality if you tell the truth and you’ve acted honorably. They may not like it, but they’ll accept it.

When mistakes are made, say sorry and do better. Really do better. Make amends. Tylenol did it right when someone in the Chicago area used their pills to poison people 25 years ago. They took responsibility even though they were never found to have done anything wrong, and in the long run, remained a market leader.

Integrity, honesty, continuous improvement, and communication, communication, communication. If clients can afford to, they’ll stay with you. If they can’t, there will eventually be a line around the block of customers to take their place who want to deal with a company of integrity. Integrity is a part of your product. Bake it in.

If you’ve always run your organization this way, now’s the time to tell people. It’s not bottom feeding, it’s a public service! If you’ve been around for 10 years, 50 years, or 150 years, and have always treated your customers well and run things conservatively – now’s the time when the tortoise beats the hare.

Tough times. It is what it is. Let your character shine through.

Posted by: Steve Banis