Economics. For some people that word alone can cause people to zone out.
It’s full of numbers. It’s complicated.
And last, but not least, it’s boring.
But love it or hate it, there is no denying that economics plays a big part in all of our lives.
That is why over the past five years, along with my studies of business, marketing and real estate, that I devoted a little time each day to understanding the financial crisis that is still gripping the world.
I stay “still” because despite what our government and some financial experts say, the financial crisis isn’t over.
It’s merely simmering.
Why do I say that?
I have one simple reason – none of the people responsible for the last crash which wiped out trillions of dollars worldwide have been punished.
And when people are not punished for their actions, there is a very high probability that they will do them again.
We all know that children need to be taught that actions have consequences.
Good begets good, bad bad.
So what message are we sending when we let bankers gamble their investors’ money away and let them walk away with nothing more than a slap on the wrist?
It says we’re not learning from our mistakes.
It says we’re in trouble.
Today, in the economic world, everyone’s got their eyes on Greece. But that’s just the tip of the iceberg; Portugal, Belgium, Ireland and Italy come next. After that it’s Spain and if Spain runs into trouble, England, America and Japan are next.
There is an economic contagion spreading around the world.
And from everything I’ve studied, I believe that the next 4 years will shape our world for many years to come.
One thing’s for sure, over the course of our lifetimes, there will be booms and the will be busts.
When things are booming, everyone’s happy, it’s the busts we have to watch out for.
That’s why I encourage each of you who is reading this post to start preparing for another financial crisis.
If it never happens, lucky us.
If it does, we’ll be ready.
ps. for those of you interested in learning how to prepare, I will be writing a post on that in the weeks to come, stay posted.