Tuesday, October 21, 2008
How could this happen?....
I was talking with a few people the other day and the topic of the financial markets came up. The question came up, "How in the world did it get to this point?", another question came up about "How could AIG, the worlds largest insurer get into so much trouble?"
Well, Its really pretty simple......and I say that at the risk of sounding a bit naive or simple, but hear me out. Every action taken by the financial markets, be the mortgage industry, the investment firms, the insurance companies or the Fed itself.......every action was driven by one predominant concept. Only One!! The Illusion of Lack!!! The illusion that there is not enough, which is driven by the illusion of Need.
This isn't some Pollyanna blah, blah that I'm professing. It's fact, but you get to choose if you believe it. What drove all the risking sub-prime mortgage derivatives that were offered by the mortgage industry? The need to drive more volume of loans to people that couldn't qualify for traditional mortgages.....and investors flocked to scoop up these ridiculously risky instruments to cash in on. The really disturbing thing is that Freddie Mac and Fannie Mae, both knew they were a house of cards and did nothing.........why?, because the powers to be were cashing in on the reckless thirst of investors that did not want to miss out on a new source of revenue.......because they were living in the illusion of Lack......and in a mentality of get it while you can. AIG did the same thing, Insured and then sold the policies, then re-insured and were stuck holding a bunch of policies that had defaulted loans associated with them......They literally had to borrow $85 Billion on one day and pay the entire amount out on losses the very next day, then the following day, the Federal Government took them over to maintain the mere appearance of solvency.
So what is the answer? Well in my mind, and while it will sound pollyanna, is to make decisions based upon peace. When I put together this investment vehicle, does it bring me peace knowing it is based upon expansion. I'm not talking about immediate funny money expansion, I'm talking about sustainable long term positive expansion. Key word being sustainable!!
The "collapse" of the financial markets was inevitable as a natural part of an expansive Universe based upon positive Energy, Love, Well Being, Divinity. Greed and short sighted strategies for "me" getting my wealth while I can does not fit into the process of expansion driven by pure positive energy. The approach the vast majority of investors and the financial industry took was steeped in resistance and contradiction........which brought more resistance and contradiction and fear and the pyramid crumbled. The only way the stock market could fall as much as it did, was investors got scared and sold their investments even at a loss to prevent an even greater loss.........hmm, sounds like....like attracts like.
But the good news is this is the absolutely best opportunity for us as a collective to get a grip on how we operate....and yes it will be painful for many, but only if you are creating your experience in a very haphazardly way......so just don't do that. Use every moment of every day to re-create the manner in which you interact with life in order to create the grandest version of yourself you have ever yet to think about. Choose your thoughts very wisely and have them work for you not against you.......use Life for what it is......expansion. And where does expansion come from.......pure positive thoughts and feelings, Love and Joy and a knowing that you create your every experience and you only have to choose what experience you want to have........your true self only desires Well being. Know your true self......if you do not go within, you will go without...........Be Well, and Choose Well!!!