The basic fear of “trusting yourself” is once again playing itself out on the national and global economic scene.

What happened to “buy low, sell high”?

The losses, now just beginning to be reported, by the mortgage industry and soon to be followed by a ripple effect throughout the economy, are so massive you are only getting bits of the information. While those in the know have already moved their wealth out of the market.

Most people have abdicated their responsibility for the protection of their wealth to others. When people stopped investing in companies and gave their wealth over to faceless “managers” who in turn placed it into massive mutual funds, they disconnected from the first rule of money:

Money without a purpose rapidly dissipates in value. It takes more wealth just to preserve the value. (Source: The Intentional Prosperity™ System)

The day you stop investing your wealth in things and experiences that bring good into your life, you subject your wealth to rapid depletion.

The reason is, you are no longer “investing” directly into a company, an opportunity or more importantly, yourself. You have become a speculator, just like a commodity trader, who bets on the price… You are gambling with your money so don’t be surpised if you end up on the losing end.

The house always wins!

Here’s the problem, the stock market is poised to tumble…in a big way. High average personal debt, shrinking credit markets, rapidly droping home values and the mortgage crisis (which nobody has yet to fully report) plus the shrinking value of the dollar (which is now “coming home” as inflationary pressure) means only one thing:

People are going to think twice before buying!

Anything which is a non-essential purchase is going to be put-off. When people get scared they don’t spend money…they hang onto it…and in a service economy that spells recession!

People are now going to shift their attention to making money and paying off debt…not spending it.

A word to the wise: Lemmings always fall off the cliff because they were too busy watching the guys in front of them.

This blog is only my opinion and is not intended as finanacial advice… Use your common sense. The big hit will only hurt those who have their heads in the sand.

-Bob Baran