Is the Economy in Trouble? Or just the Sheep?
Everyone seems to running around complaining about the economy and unemployment and lamenting the fall in the stock or housing markets. Let’s stop running for a second and ask an important question.
How did we get into this situation?
The markets did not suddenly decide to go down by themselves. They are simply going down after going up for a long, long time. Markets go up and markets go down. It’s part of the grand scheme of things.
The interesting thing to note is that everyone has seemed to forget that we had nearly a decade of rising markets, at least for housing and stocks. People forget because there are no reminders on the news. It’s all about job losses and bankrupt giants. If that stuff is bad, why don’t they mention the 10 years of good times and easy money? Surely they talked about it while it has happening, right?
I don’t think so. The entire news industry focuses people’s minds on what is bad, not working, and helps them forget everything they could be grateful for. 10 years of good times is something that we can be grateful for. The doubling of the value of people’s houses in 5 years happened for most homeowners. Millions of peoples’ net worth went from zero to $100,000 or more.
Yet we never hear about that. It’s all about what happened in the markets today. It’s about the unemployment numbers released today. We hear about big business bankruptcy news that happened today. People accept all this news as unbiased. People become part of the massive herd of sheep.
If we want to be financially successful, we need to think for ourselves. We need to remember that the people distributing the “news” are trying to make money for themselves. They are serving their own needs, which is fine. The important thing to remember is that we need to keep that in mind and decide for ourselves if it serves us.
Nobody knows if the markets are going to drop in the near future. No one can predict when we will have another depression. But only the people who are thinking for themselves will be able to profit and succeed when the markets inevitably go down.
Related posts:
- Can Obama Save the Economy?
- Is a Bad Economy Really Bad News?
- Is your Financial Situation Controlled by the Economy?
- The Opportunity of the Economy
- Automated Trading and the Economy
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is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
