Fear itself is a virus that infects others through a Vector called ‘thought’.
A ‘Vector called thought’ meaning that Fear spreads through words, actions, thoughts, and sayings.
What we say to eachother is ultimately what drives our buying power and decisions. The reason people buy and sell, are due to a number of numinous factors, and fear being a paramount one of them.
Great investors have the capacity to weather out the storm, to be stoic in the face of fear, and to be brave when others are fearful. (Note, you need the capacity to last long, not just being fearless. But the strength to accompany so to succeed).
So, Fear itself is a Virus.
And it spreads through word of mouth, gossip, news media, etc.
When there’s enough fear, there’s a panic.
And when it comes to a ‘market panic’, there becomes a huge sell off.
What’s worse, when people are fearful enough, they won’t think to store their monies in a bank, and ask for withdrawals. Which, wouldn’t be a problem if there weren’t liquidity issues. Which there arguably might not be any if people weren’t doing a bank run. So Fear begets bank runs begets liquidity issues begets fear.
And thus, as measured in history of the 1920’s, there were robber barons and swindlers that ran with the money, resulting in panics and fears routing people to overdraw and oversell their positions to retrieve money -that wasn’t there- from banks -that went under-.
Now with the current buffer of credit cycles and tiered structure of ‘robust banking’ that the Central Banks and organizations provide, one can only guess the response of bank runs in a modern age. I mean, who bails out the FED?
With the recent news of several banks failing, the common layman is questioning the liquidity of their own bank. Rightfully so, but for the indirectly inaccurate reasons.
Thus lies the question,
‘How liquid is my bank’?
When the true reality is that Banks are merely religious institutions that have MD’s act as Money Priests to ‘bless’ and approve loans and checks to generate credit from thin air, perhaps people might re-evaluate the intrinsic structure of our economy and the idea of banking. Perhaps people will question the monetary regime and ask what ideas of ‘Monetary sovereignty’ are.
Yet, with a fear mindset, no one seems sober enough to find such a resolve. The chances of such a monetary enlightenment are ever so slim.
Yet, it’s not zero.
As always, There’s No Safe Bets.
Fear sells, and that’s true. Bank runs and panics drive itself in a vicious cycle. The fear of uncertainty and the future result in people making rash and greedy decisions to ‘secure’ their livelihoods.
Perhaps though, through the mental tortuous torture of Fear, perhaps -with this suffering- we may find the resolve to enlighten ourselves to the monetary regime that we hold, and perhaps we might question the sake of our institutions.
How is it that a group of people can print money?
What then are the purposes of Taxes if money is printable at will?
Why art thou Federal Reserve be a private institution?
What does the term ‘living wage’ imply for those that don’t have it?
How can a Politician raise their own wages let the minimum wage be unaffordable?
How are Governments in deficit, spending more than their interests can appreciably be paid off?
Where ‘exactly’ is the money coming from?
In a fiat world, money is backed by debt, ask yourself, what debt is unable to be forgiven?
Isn’t the wealth of society then tied to it’s number of debt slaves?
And always, there’s no safe bets.
*Not Valid Financial, Legal, Life, or Any Advice