The Role of a Financial Advisor

When you watch the news every night, you never know that the world economy is falling apart. But political leaders, bankers and institutional investors know, and their actions are very clear. Ever wonder why interest rates are declining and declining? Not many people do, they think they can buy a more expensive home now. That is to reduce rates, to get more debt, to buy a bigger house, to get a new car, and so on.

The economy is in worse shape than you were told, and you are trying very hard to renew it by encouraging your leaders to buy on credit, because they know you can’t afford it. If consumers could afford to pay in cash, the economy would not be in trouble. We are overweight, overweight and very vulnerable to economic shock.

The music continues until the bitter end as passengers on the Titanic finally list the ship and their drinks slide off the table in front of their eyes. The Titanic crew reportedly refused to “wake up” the passengers after the snow melted, and the passengers did not want to be disturbed. Everyone was having a good time listening to the bands and dancing all night. Even when it became clear that the ship was sinking, few wanted to leave the ship on a cold night and leave the warm and music-filled area.

The first chance of survival from a sinking ship is high, and those who choose to deny the reality of the situation will not respond until they are on a 90-degree cruise at the bottom of the ocean. Of course, it was too late to respond to anyone’s rescue. I use this example because we are now passengers on the Titanic. We hit the iceberg, we fetched water, we watched the unexpected ship begin to sink, and some were responding, but most refused.

People are easy. Winston Churchill knew how easy it was to create the phrase “chicken in every pot.” At that time, the British people were shocked by the British attack on Germany. Many were robbing and trying to escape in order to flee or feed the country. England tried everything to bring peace and order, but to no avail. This is because they do not understand human nature, but Churchill understands. He knew that if you gave him something as simple as a chicken every day, he would believe that things are not bad and that they are not good. People search the world for the truth, thinking that it is similar in their daily lives. For example, if a person has good money, if he has a good job, they believe that the world economy is doing well, and if they cannot get a job or get a better job, they believe that the economy is terrible. Putting chicken in everyone’s chicken every day, he said, despite the fact that bombs were exploding and war was everywhere, things were not so bad.

It is the same today. The signs tell a different story, but those who have a good job are sure that the economy is doing well. In the oil and gas sector, they were all isolated from reality and trusted in the world economy, their jobs, and their future. More than 50% of that oil has fallen, thousands and thousands are losing their jobs, and oil-producing regions are shocked. Suddenly the economy is in a terrible state and someone wants to do something about it!

This is how social and political unrest was born. Human reality explodes instantly. All their hopes and plans were blinded. Once the shock is over, anger or sadness and fear for some or all three begin. Politicians are afraid of this because they understand how quickly thousands of protesters will have to resign if economic conditions do not suffice. That is why the news of the night is certainly optimistic, bad news, but always positive. One example is how good fuel prices are for consumers, which can actually outweigh the negative effects. History proves otherwise.