Friday, February 27, 2009
Doom and Gloom is an attitude of the Scarcity Mentality
The below video shows a heart-stopping housing chart and I believe that some people are taking it as a doom and gloom message. I did not intend to post anything with that kind of message, but to show anyone reading my blog that the natural downward spiral is a normal and expected thing to happen especially after consumer debt has hit an all-time high since 1929 (it is even-steven with our Gross Domestic Product today just as it was the day the market crashed in the late 20's).
Do I think that people should try to pay their mortgage down as fast as they can in order to save their skin? No! Do I think that people should learn wisdom in crisis? Yes! Do I think that people should continue to save money regularly to bring down consumer debt? Yes! It is true that the value of our homes will continue to drop to its necessary place on the chart and yes, it is probable that it will dip well below the average just as it did during the 1930's depression and WWII. But we have good reason to believe that it will eventually come to its average place when we have recovered from our economic disaster. The former statement should not cause us to panic while declaring the fateful attitude of doom and gloom to all our loved ones and friends, but should teach us that runaway consumer spending always will come back to haunt us. Economic and political knowledge coupled with hope and cheerfulness can replace the negative and inspire an abundance mentality.
Folks, let us save a little more money each day; be a little more frugal; be hopeful and full of wisdom as we encourage others to do the same.