Fear and Correction

A lot of people talk about greed and recession. So this topic must sound as a lot debated and talked about by everyone. However I wish to provide bit different point of view.

Fear is what we all are born with. Biggest fear being fear of ultimate truth – the death. We know that for us nothing exist after death. But we still talk about planning of all sorts after death. My children, my wife, my parents should be able to live happily even after my death. But does it really matter to me as I myself will not exist after my death?

Another fear is fear of dejection or fear of un-acceptance from peers. If I don’t have enough money, would my wife treat me the same, would my banker still have faith in me?

I don’t consider fear of loosing your wealth as a fear as it is actually a reason or input to fear of dejection. To me fear is only which is related to either personal existence or societal existence of human.

I don’t understand recession. To me you only can have corrections. Some are at higher depth, some are longer and so on and so forth. But there are no recessions.

Greed is not lack of fear but only a solution – the best solution that we find to work around my fear. For example. I know that I may loose m job in 6 months, I want my money to give me max possible return on investment. In a longer timeframe also, as I am always running against time, I want to get maximum RoI and that is what people call greed.

Once economy is going through correction, different kind of fear comes into play. Now I am fearful of loosing my capital against highest possible RoI. And when everyone is fearful, snow ball effect increase the correction. Till the time, more intelligent who also don’t have to worry about erosion of capital start worrying about RoI, they start doing investments which take economy out of correction.

There of course is a role of government in all this, and I will try to cover it in my next post.