The big Q.. 'How do i make more MONEY?'
Not that there is enough not already written about this by people infinitely more intelligent and wiser. but I still thought I would add a slightly different perspective.
Right from the time I remember, my dear father, made sure he would constantly drill one message.. SAVE SAVE SAVE. Like all parents, he only wished well my future.
When I look back I thank him immensely because that discipline has got me to where ever I have got, but now I think the need of the hour is the opposite.. its SPEND SPEND SPEND..
How many of you and the people around you have seen their income reduce over the last three years? My guess would be a very small percent.. maybe a spouse has lost their job, or a pregnancy has a forced break. BUT, how many of you are spending the way you did 3 years ago? My guess would be a small percent there too..
The root of the problem lies not what will happen, it is what is happening.. We have just stopped spending..
Why have we stopped spending? because we have lost all confidence in the future!
Why have we lost confidence in the future? Because all we read is negative news!
Why is there just negative news? Because that is how the people writing the news are feeling!
and Why are they feeling that way? its because they have lost all confidence in the future..
How does this affect you? The more you spend, the more chances are someone will land up spending on the service/product you are offering!
Give this a thought, the next time you read that there is 8.5% unemployment, it means that there is a 91.5% EMPLOYMENT!
(Statistically speaking if just 4% of the working population were to increase their spending by just $100 a month, that would add to roughly a 0.5% increase in global GDP. To make it more mind boggling.. that is $288 BILLION worth of fresh money in circulation!)
So people. Want to make some money? How about starting to spend some!
ps. Last I checked the Indian markets are up 650 points since Jan 2nd. Dow is up 2.16% for the month!
(ps. would love all your comments and feedback on abblogs77@gmail.com)
Not that there is enough not already written about this by people infinitely more intelligent and wiser. but I still thought I would add a slightly different perspective.
Right from the time I remember, my dear father, made sure he would constantly drill one message.. SAVE SAVE SAVE. Like all parents, he only wished well my future.
When I look back I thank him immensely because that discipline has got me to where ever I have got, but now I think the need of the hour is the opposite.. its SPEND SPEND SPEND..
How many of you and the people around you have seen their income reduce over the last three years? My guess would be a very small percent.. maybe a spouse has lost their job, or a pregnancy has a forced break. BUT, how many of you are spending the way you did 3 years ago? My guess would be a small percent there too..
The root of the problem lies not what will happen, it is what is happening.. We have just stopped spending..
Why have we stopped spending? because we have lost all confidence in the future!
Why have we lost confidence in the future? Because all we read is negative news!
Why is there just negative news? Because that is how the people writing the news are feeling!
and Why are they feeling that way? its because they have lost all confidence in the future..
How does this affect you? The more you spend, the more chances are someone will land up spending on the service/product you are offering!
Give this a thought, the next time you read that there is 8.5% unemployment, it means that there is a 91.5% EMPLOYMENT!
(Statistically speaking if just 4% of the working population were to increase their spending by just $100 a month, that would add to roughly a 0.5% increase in global GDP. To make it more mind boggling.. that is $288 BILLION worth of fresh money in circulation!)
So people. Want to make some money? How about starting to spend some!
ps. Last I checked the Indian markets are up 650 points since Jan 2nd. Dow is up 2.16% for the month!
(ps. would love all your comments and feedback on abblogs77@gmail.com)
3 comments:
Interesting! Keynes referred it as the "paradox of thrift"- if during hard times the rational thing would be to save and eventually the people saving will have no jobs as nobody is consuming!But this financial crisis is different because as much as a supermarket or a restaurant needs the money, even the banks need money-so saving may not be such a bad thing.As the old Chinese curse goes- May you live in interesting times!
thanks bob, totally agree.. its a long debate on the reason why banks need more money, including the fact that a small group of people wanted to exploit the less learned people who really thought that there were no risks involved in borrowing money (i.e. LEVERAGE)
having said, by not spending.. the money is with the banks anyway.. :) it just not getting transferred. :)
Agree with Anish. The money is with the banks. The pendulum has swung far too much the other way. The banks went from massively idiotic ways of doling out cash to unworthy borrowers to now overtly conservative even with worthy borrowers. Hope the big banks get their heads out off their ass. Start spending people!
Sanjay
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