Wealth Insights: 2008-12-05
Isn’t it strange fat that much of the financial information that comes our way we accept without the shadow of a doubt – even though that information is not independent, not impartial, but instead is designed to influence us.
Yet on the other hand when we encounter ‘a different story’, we are deeply suspicious and do not give it a chance. If a new idea goes against what we are accustomed to (conditioned to) than we are unlikely to accept it.
Now here’s an example of how easily we trust and how society is set up to make us feel 100% confident in certain authority figures – rightly or wrongly.
Remember former U.S. Federal Reserve chairman Alan Greenspan? The darling of the financial world? The man who, being responsible for the effect of his policies on the whole of this giant economy, surely understood everything he was doing?
Well just recently he told the U.S. Congress that he was “shocked” at the breakdown in US credit markets. He admitted that he was “partially” wrong to resist regulation of some securities.
Greenspan told congress that “this crisis . . . has turned out to be much broader than anything I could have imagined.”
So the man the entire economy followed because he was so knowledgeable, so expert – did not have the imagination to envisage the effects of some of his policies.
How wise was it to give him so much power? And not to ask questions years ago? The word “bubble” was applied to the US housing market years ago – when the boom was really only still building – yet all the experts were deaf to such warnings. Now everyone’s paying.
The lesson?
Nobody, but nobody, no matter his reputation, no matter his aura, no matter his rank – should be taken as the ultimate unquestionable authority.
To hand responsibility for anything to anyone else is to take a massive risk that you – not they – are going to pay for.
Okay, you cannot control the way your country is set up to run their financial policies. But in your personal life, you can make your own decisions.
The bank will give you a loan for a too-big house? Or you can sidestep the NCA’s 30% rule by buying an additional property in a trust or a Pty instead of your own name.
Great.
The question is - Will you take it, just because they will give it?
What will it do to you?
What risks will you face?
Who will help you if you get into difficulties?
There is always a positive in every negative. In this case, it’s the chance to learn a lesson, hopefully not at first hand, and so lessen your dependence and thus your risk.Before you make your next investment - first learn how to apply the Formula For Riches.
It is the true secret of wealth!
To all your success.
Dr Hannes Dreyer
Wealth Mentor
For more information on products and seminars by the Hannes Dreyer Group go to http://www.learn-to-invest-money.com/HDGroup.html
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