Thursday June 18, 2009
The gloom and doom in the media has made people forsake all reason. It appears that the “experts” can dominate by the stroke of a pen, the keying of the keyboard and the loose lips of a pundit.
The true problem is they have little internal knowledge of true conditions, only opinions. They themselves are over sensationalizing the crash to sell their product….news. News is the best market to be in right now. One can certaily see the feeding frenzy the media makes oversensationalizing certin pet issues while completely overlooking others. Let’s narrow it down to what we know to be true:
- True statement: homes were over priced and a correction was due.
- True statement: predatory lending practices were going on, I myself was offered a “non-conventional” loan when I bought my home in 2003.
- True statement: the stock market was over inflated and due for a correction
- True statement: the price of a new car was over inflated to cover cost and discretionary cost of keeping the unions in business, completely unsustainable in the long term
- True statement: we are in the midst of a correction in the market
- True statement: Fear is the current determining factor in most buying decisions
Fear of the loss of employment is keeping us from buying cars…personally my family car smells like wet dog on humid days and I could certainly use a new one. The fear of loosing it all to a moody stock market is on everyone’s mind. Fear of…. you get the picture. It seems there is one main reason we are not recovering. That reason is Fear.
So, the question of the day: what will it take to overcome the fear in the market and “thaw” our economy? I look forward to that answer.
The market driven pendulum has now swung to over correction. I look forward to the stabilization of fear.