The Financial "Herd" Crisis: Here We Go Again
Monday, August 8, 2011 at 1:32AM 5 Comments A few weeks ago I talked about "the herd mentality." Well here we all are running amok like lemmings and taking every one else with us. (Greed or Fear Making Decisions?) When the market began it's downward slide in 2008 I said to my husband Dave - "Watch how fear will
spread like a wild fire, how people will react and sell stocks and that will create more fear." (That's not to say the legislators, bankers, etc. have no responsibility - they do)
Today it's deja vu all over again The stock market is down 361 points by 7:47 a.m. Pacific time. We've lost ALL the gains of 2011. Fear has jumped into the bus, pushed the driver out of the seat and taken over, once again. How far will the market drop? We'll know in 2 or 3 weeks. But that's not the root of the problem.
The root of the problem is FEAR. Take a breath, get the rational brain in charge again and the reactionary brain calmed down. According to the Klontz's, (Mind Over Money) the fear that's driving the money bus right now is driven by the subconscious messages of our tribal consciousness when literally if we were kicked out of the TRIBE it meant death.
Here's how to calm down and get thinking rationally again: 1) Really, take 20 breaths using the yoga technique "alternate nostril breathing." (Place index finger on one side of your nose, take a deep breath, switch fingers to opposite nostril and exhale and continue for 20 breaths). Repeat every time you find yourself getting overanxious about the market or what you hear on the news. Will this change what's happened? No. But it breaks the stress overreaction cycle.
Take action: Now that you're calm, what actions do you want/need to take to protect yourself? Take your money out of the market? (Ok, but really think about whether withdrawing at this point will help or hurt you - remember the losses are already gone and the more reacting there is the more losses happen.) 2) Talk to your stock advisor? 3) Express your opinion - send letters to your Legislators letting then know what you think and what
you'd like to see done. 4) Prayer - yes, prayer. Research shows that green bean plants prayed for grow faster and larger than ones that aren't. A Washington D.C. experiment conducted by Buddhists showed a marked reduction in violence over the summer the city was prayed for. Imagine if a large percentage of America was taking action through expressing their needs, respectfully to Congress, and praying for - what? Good question. How about to work together to make calm, rational decisions based on the good of the whole?
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