Saturday, 15 March 2008

Why are we so scared of recession?


We all invest our heart in different stock; friendship, love and dreams. We live in hope that it will grow and grow. But in reality what goes up must come down. In economics this is known as a recession, a downturn in the economy, a fierce environment for making money. What if we modelled life as an economy? They say sometimes in order to grow in the long term a recession isn’t that bad at all. It’s always going to happen so staving it off may worsen its damage and the period before a recession is known as a slowdown so won’t prolonging this downward spiral make it seem all the worse? We have to wonder in our lives can a recession help us grow?

There are people paid tens of thousands, possibly hundreds, to assess risks in investments but only an individual can evaluate his/her own risk and even then we can’t get all the facts. Make a risky investment of the heart like releasing your trust to someone else’s may or may not pay off. Will it make us profit and boost our stock or will it make a dramatic loss and set us off down the river with speedy currents into the path of a waterfall. But we all see red sometimes. In the recession we can’t think clearly, problems build and build and our mind runs round in circles while our value depreciates by the second. It is said that the government can get a country out of a recession by making investment. So is any investment wise? The truth is even if we got the smoothest outcome from our investment there will always be some small hiccup because things are always too good to be true. In financial terms, if we left our money in the bank and didn’t invest a penny we’d earn interest, but if we risked a little here and a little there then we may make profits on a scale that will send our balance soaring. And then you ask… Can I risk missing out?

Happiness is immaterial and…No… money cannot bring happiness, at least not in the long term because we adjust to money, you may get a pay rise but 6 months to a year down the line you will be complaining about it because as our tastes change so does our balance. But what if you earned a lot more happiness; will it eventually make you unhappy?

When we escape a recession because an investment finally pays off what changes? Is it a lighter mood, a change of appearance, or is it just the opportunity to start building your economy somewhere else all over again and leave the dead wood behind? What we do know is that when its all over, said and done we can reflect in a much cleaner mirror, we can see clearly the mistakes behind us and learn that in the future stock is a volatile thing.

If we learn from our mistakes then we have done something special, something that proves our point. We have received a life experience; been educated and can go forward into tomorrow without resenting yesterday, after all research shows that education gains a better wage. So from our recession no matter how big or small we find our stock begins to increase and we release a dividend from our heart to our mouths and smile.

Have a great day!

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