Economic Crisis? – Your Perception is Your Reality

It’s not news that how you think the world is defines how it is for you.  What’s amazing is how many of us learn this, but continue to go through life thinking that our way is THE way.  Is your glass half full or half empty?

With the unending drum beat about the economy “crisis,” pounding through our heads it seems like a good time to revisit this.  Humans are emotional creatures that react to people’s comments on perceived circumstances more often than being proactive in choosing how to create their lives.  This phenomenon lends itself to leading us astray based on our past beliefs and current assessments of our lives.

There is no doubt that the U.S. economy is slow and translates into hard times for a large number of it’s citizens.  That said, they sky isn’t falling, just like it wasn’t falling on September 11, 2001.  Unfortunate events yes, but extreme fearful reactions just make up mental suffering.  They are blips on the screen when you view the full scope of your life.

Money is a very funny thing.  These days it’s mostly digital bytes on a screen.  And economies based on money are totally made up conversations.

Who decided to create interest rates, compound interest, zero interest loans with huge interest back ends, stock derivatives, hedge funds, money market accounts, savings accounts, certificate of deposit rates, consumer price indexes, etc.?  They’re all made up structures, which can be changed, not laws of the universe.

Money is nothing but a mental agreement where we all decided that U.S. Treasury green backs have value but Monopoly money doesn’t have value even though they’re both just pieces of paper.  You could argue that money is backed by valuable minerals like gold and silver, but who decided they were valuable?

Do you know who decided that diamonds were valuable? De Beers Diamond company and their amazing PR team who intentionally lied to the public creating a perception that diamonds are the rarest gem on Earth.  If your wife perceives that diamonds are valuable, though it’s not true, then you’ll pay 3 months salary for one and she’ll be thrilled because she thinks her perception is THE real perception.

We somehow created an extra $9 billion a month for 5 years and counting for an Iraq invasion and occupation, we found $700 billion to bail out Wall Street, and over decades we haven’t been able to allocate a few million dollars to improve America’s dilapidated schools.

It’s a matter of perception and priorities.  Regardless of what you  think of the way our social systems operate, money seems to be created when it’s needed.

Before selling my house a couple of years ago I remember thinking how crazy it was that a 2,500 sq ft house built in 1992 should be valued at over $500,000.  I was right.  The market was way over valued based on dumb reactions to perceptions real estate buyers had.

They were reacting to a perception that housing values would go up forever and they were missing out if they didn’t have rental property in addition to their own homes.  The appraisal on that house is surely lower today than it was 3 years ago.  It’s the same house.  The only thing that’s different is public perception.

Today many stocks are extremely undervalued just like a few years ago real estate was overvalued.  The market reacts illogically every day to everchanging perceptions. It’s nothing new.

So take a deep breath, smile , and spend more time creating the life you enjoy rather than following the negative news of the day.  As all things do, this too shall pass and your glass will be half full or half empty based on your perception.  What’s it gonna be?