How much has the current economic crisis affected people globally?
Website design By BotEap.comIn this current economic recession that has affected the working class globally, what will be the common phrases you hear from family, friends, neighbors and newspapers?
Website design By BotEap.com“Honey, I lost my job” next “Our company had laid off a few hundred workers” next “We have financial problems, how are we going to pay our daily bills” next “The company XXX is laying off hundreds of workers to cut costs.”
Website design By BotEap.comThe International Labor Organization predicted that around 20 million people will lose their jobs in the course of this fearsome economic crisis.
Website design By BotEap.comEveryone has to put on an austerity belt to compensate for daily expenses and reduce unnecessary expenses.
Website design By BotEap.comBattling a deepening recession, some parents are even cutting back or abandoning childcare services, keeping their children at home in the care of their grandparents.
Website design By BotEap.comMany people are having to shift their work-life balance because gas and food prices have become prohibitive and average childcare costs exceed rent and mortgage payments, even for those earning salaries. Even after a sharp drop in gasoline prices.
Website design By BotEap.comIt’s not that low-wage earners feel the pressure, but they also hit those people who thought they were safe from this troubled economy for a while.
Website design By BotEap.comGovernments around the world must find a solution to unemployment, and the rate is rising dramatically.
Website design By BotEap.comPeople need to work, they cannot stay out of work, and gone are the days when you can choose the types of occupation according to your interest, and it is a situation of taking any available job for the sake of life.
Website design By BotEap.comLESSONS FROM THE FINANCIAL CRISIS
Website design By BotEap.comWhat is everyone’s mind now?
Website design By BotEap.comMost of the people may be worried about the terrible financial crisis, job, financial situation or their wealth.
Website design By BotEap.comIs that all you have to do? Let’s “NOT” focus on the current economic crisis and start learning from the impact and be brave to face the worst and improve our survival tactics.
Website design By BotEap.comInformal first, here’s a new perspective for those who are worried about their money.
“Wealth is not how much money you have. Wealth is what you have left when you lose all your money,” quoted by Roger Hamilton. Website design By BotEap.comNow what do you have left, when all your money is gone? Website design By BotEap.comYou may have forgotten about your personal wealth that you have accumulated over the years, those skills that you learn, the knowledge absorbed from society, the network of associates, and finally, the character that has matured through difficult periods. Website design By BotEap.comStop, stop, stop, all worries, instead focus on building and expanding a quality business network with your knowledge and skills. For those, working class people, look for more part-time jobs available in your community. Website design By BotEap.comOne should also stop worrying about reputation, but focus and fine-tune our character, because you have zero influence on your reputation. Website design By BotEap.comIt’s what people think of you, and that you have a total influence on your own character and mindset. Website design By BotEap.comGOOD THOUGHTS AND BAD INVESTORS Website design By BotEap.comMost Financial Management courses educate their students on the positive correlation between risk and return at the beginner stage. Website design By BotEap.comThe higher the risk of an investment with higher return on profit and vice versa of course.
Institutional and private investors who critically purchased high-yield, high-risk structured finance instruments ignored this fundamental principle. Website design By BotEap.comMost of the reorganization and reselling of subprime mortgage risks will not eliminate the ultimate risk of credit default which is based on the creditworthiness of the ultimate borrower and not the issuing banks. Website design By BotEap.comHowever, many financial institutions and private investors continue to buy these high-risk high-yield instruments or bonds, and should we follow them blindly? Website design By BotEap.comWell, the answer is to ask questions of financial promoters; Website design By BotEap.comWhy does this instrument offer such a high return, when it is promoted as a low risk investment? Website design By BotEap.comWhat will be the risk? Website design By BotEap.comWe need to be transparent about this risk before we even think about investing in these so-called safe investments. Website design By BotEap.comOverconfidence is one of the most common traps people can fall into and you need to be aware of all the knowledge gaps and perception blind spots. Website design By BotEap.comThis kind of situation is dangerous as we don’t know what we are supposed to know about financial backers. Website design By BotEap.comIn fact, most financial institutions actually knew what risks they were taking on their books and the same with eager high-yield investors who had risk in their portfolio. Website design By BotEap.comPay attention to what you really don’t know about any trading situation before you make the investment, as the Aldous Huxley quote is correct; “Facts do not cease to exist just because they are ignored.” Website design By BotEap.comAmplifies the Effects of Risk Ignorance Per Groupthink 2006, some economists and policymakers warned that the US housing market would be in deep trouble as soon as US interest rates started rising again. Website design By BotEap.comThis warning was ignored, as these critics were often ridiculed, silenced, and forced to adhere to the prevailing mindset of the uncritical mainstream majority. Website design By BotEap.comAlthough clear warning signs of an impending housing crisis in the US were expressed for more than two years, most investors did not notice or simply ignored the facts. Website design By BotEap.comSo, finally, what causes the financial crisis? Website design By BotEap.comIt is primarily herd thinking coupled with overconfidence, ignorance, selfishness, and greed with a short-term focus on exciting growth, personal gains, compensation, and a neglect of long-term sustainable growth and profitability. Website design By BotEap.comThe greedy mind of many investors with their thoughts; “I want to have more and more profit now”, as such thinking is value exploitation at its worst. It is the antithesis of creating value as a responsible investor or business thinker. Website design By BotEap.comAs revealed by world population statistics, which have reached 6.8 billion people living on this earth at the latest and it is estimated that they will increase to 9 billion by the year 2050. Website design By BotEap.comThe conclusion of the current economic crisis is a human error, not a natural disaster; it is the ignorance, greed and selfishness of the human being that Lord Buddha defines as poison embedded in the mind of the human being. Website design By BotEap.comAs Albert Einstein said “We cannot solve our problems with the same thinking that we used when we created them”. Website design By BotEap.comAs times get tougher with the economy and recession positions, our fellow humans will eradicate bad thoughts, wake up, it’s time for a new creative renaissance. Website design By BotEap.comThe motto will be; “Reactivate our economy to reduce the suffering and agony of the recession”
“Wealth is not how much money you have. Wealth is what you have left when you lose all your money,” quoted by Roger Hamilton. Website design By BotEap.comNow what do you have left, when all your money is gone? Website design By BotEap.comYou may have forgotten about your personal wealth that you have accumulated over the years, those skills that you learn, the knowledge absorbed from society, the network of associates, and finally, the character that has matured through difficult periods. Website design By BotEap.comStop, stop, stop, all worries, instead focus on building and expanding a quality business network with your knowledge and skills. For those, working class people, look for more part-time jobs available in your community. Website design By BotEap.comOne should also stop worrying about reputation, but focus and fine-tune our character, because you have zero influence on your reputation. Website design By BotEap.comIt’s what people think of you, and that you have a total influence on your own character and mindset. Website design By BotEap.comGOOD THOUGHTS AND BAD INVESTORS Website design By BotEap.comMost Financial Management courses educate their students on the positive correlation between risk and return at the beginner stage. Website design By BotEap.comThe higher the risk of an investment with higher return on profit and vice versa of course.
Institutional and private investors who critically purchased high-yield, high-risk structured finance instruments ignored this fundamental principle. Website design By BotEap.comMost of the reorganization and reselling of subprime mortgage risks will not eliminate the ultimate risk of credit default which is based on the creditworthiness of the ultimate borrower and not the issuing banks. Website design By BotEap.comHowever, many financial institutions and private investors continue to buy these high-risk high-yield instruments or bonds, and should we follow them blindly? Website design By BotEap.comWell, the answer is to ask questions of financial promoters; Website design By BotEap.comWhy does this instrument offer such a high return, when it is promoted as a low risk investment? Website design By BotEap.comWhat will be the risk? Website design By BotEap.comWe need to be transparent about this risk before we even think about investing in these so-called safe investments. Website design By BotEap.comOverconfidence is one of the most common traps people can fall into and you need to be aware of all the knowledge gaps and perception blind spots. Website design By BotEap.comThis kind of situation is dangerous as we don’t know what we are supposed to know about financial backers. Website design By BotEap.comIn fact, most financial institutions actually knew what risks they were taking on their books and the same with eager high-yield investors who had risk in their portfolio. Website design By BotEap.comPay attention to what you really don’t know about any trading situation before you make the investment, as the Aldous Huxley quote is correct; “Facts do not cease to exist just because they are ignored.” Website design By BotEap.comAmplifies the Effects of Risk Ignorance Per Groupthink 2006, some economists and policymakers warned that the US housing market would be in deep trouble as soon as US interest rates started rising again. Website design By BotEap.comThis warning was ignored, as these critics were often ridiculed, silenced, and forced to adhere to the prevailing mindset of the uncritical mainstream majority. Website design By BotEap.comAlthough clear warning signs of an impending housing crisis in the US were expressed for more than two years, most investors did not notice or simply ignored the facts. Website design By BotEap.comSo, finally, what causes the financial crisis? Website design By BotEap.comIt is primarily herd thinking coupled with overconfidence, ignorance, selfishness, and greed with a short-term focus on exciting growth, personal gains, compensation, and a neglect of long-term sustainable growth and profitability. Website design By BotEap.comThe greedy mind of many investors with their thoughts; “I want to have more and more profit now”, as such thinking is value exploitation at its worst. It is the antithesis of creating value as a responsible investor or business thinker. Website design By BotEap.comAs revealed by world population statistics, which have reached 6.8 billion people living on this earth at the latest and it is estimated that they will increase to 9 billion by the year 2050. Website design By BotEap.comThe conclusion of the current economic crisis is a human error, not a natural disaster; it is the ignorance, greed and selfishness of the human being that Lord Buddha defines as poison embedded in the mind of the human being. Website design By BotEap.comAs Albert Einstein said “We cannot solve our problems with the same thinking that we used when we created them”. Website design By BotEap.comAs times get tougher with the economy and recession positions, our fellow humans will eradicate bad thoughts, wake up, it’s time for a new creative renaissance. Website design By BotEap.comThe motto will be; “Reactivate our economy to reduce the suffering and agony of the recession”