Tag Archives for " housing crisis "
The economy stinks. What will go sour next? I wonder what will happen? How can it get worse? What if it does get worse?
Are you anxious, uncertain and fearful? Most are. When major things happen we tend to get drug into them usually more than necessary. Now, if you have lost your job, your income has dropped because of the financial markets or the work you do has slowed, I understand that you have less available cash to spend. And I am sorry about your situation and wish to see you get back to normal for you soon.
What I want to address here is the fear and near panic millions are getting sucked into because of what is going on with the different financial problems. What is happening is that as millions of people buy into the mass fear and drastically change their normal spending habits. Based on their anxiety and fear of the unknown they want to hang on to as much money as possible.
So, then what happens? The flow of cash out in society slows way down even more. And guess what, more people will loose their jobs. Think about this, most of us work in businesses that sell things or services. So what happens when lots of people stop buying? Do you think everyone can keep their jobs when nothing is sold? No.
When lots of people stop going out to eat, what happens to the restaurant business? Have you ever thought about how many jobs your normal spending activity supports? I don’t know for sure but consider this. If a waiter/waitress handles about 6 to 10 tables in a restaurant, how many people have to stop going to eat there until the server looses their job. And when they loose their job, there is one more person who actually does not have the same spending power. And this job loss scenario is multiplied millions of times over very quickly.
The point is this. For those who are employed and are receiving regular paychecks I suggest that you keep your spending habits as much as normal as possible in order to prevent a further downturn in our economy. And this is really most people. Think about it, unemployment has risen to about 6 to 7 percent which means that over 95 percent of the population is still working. Now unemployment in the US generally runs about 4 to 5 percent when things appear to be running fairly smoothly. So right now, an additional 2 percent of the population is out of work. Sure a lot of people and I wish it wasn’t so, but should a 2 percent change in employment drive our economy?
Yes, I know there is a large group of people who rely on the investment world for their incomes and this is down, but still not the majority. And I am aware that the problems with housing and finance appear daunting, but are we allowing the tail to wag the dog? Our economy is based on cash flow. And cash flow is people spending to buy, not holding to worry. Your personal association with money for the most part is one of flow. It comes in to your possession as you earn and then goes out as you spend.
It’s the same with a business – in flow and outflow. And like anything that flows, it can be stopped at either end. A water hose can be shut off at the beginning or blocked at the outflow end. So it goes with cash flowing through you. So for the vast majority cash is flowing in just fine, but not flowing out. The result is, someone somewhere is not able to receive their in-flow because you have stopped it at your end.
The real power we have as humans is with our thought. We have the ability to take command of our thoughts and decide what they will predominately be. We don’t need to just follow all the bad news and react with fear. Just because it is the easiest way does not mean it is the best. Fear is made up in our mind, it is the great what if? – based on the worst. There is a law of the universe that states, ‘what you think about expands.’ So what are you allowing to expand?
This ‘crisis’ we are in right now is a perfect example of something expanding due to how much it is thought about. Look around, millions are holding on to their cash not because they have to but because their obsessive fear thinking has driven the motivation. And thus even more people are loosing their jobs making the real problem bigger. Then there really are more and more people with reduced spending ability, but not because of the original problems. And this just keeps cycling faster as the fear grows because more are loosing jobs, then fewer spend, more job loss, and so on.
This is happening right now! Those that are stopping the flow of cash throughout society are making things worse. Now it is in our hands. Real estate and the financial system has taken their hits and will gradually recover. And there is plenty of blame to throw out but that is not the point. How far we allow this to go down and how fast it comes back to normal is in our hands now. It’s in the hand of the people who really drive this economy, the spenders – all of us.
I challenge you to really consider your situation and decide if you truly need to reduce your spending, at least by the amount you have. Going back to your normal spending habits with be the ultimate service to the economy, which does help you personally. You have the ability to take command of your thinking and override the automatic fear thinking that creeps in so easily. This is because of past programming that you react as you do, but it does not mean that it is the only way or the best way. You can analyze your thoughts right now and choose to hold better more supportive thoughts.
If each do our part by continuing our normal spending habits as much as possible we can support a quick economic recovery without more backsliding. Like anything it’s a choice, your choice. I’m just clarifying it for you to help you make it. Choose to have your reason affect your thinking more than your anxiety.