Thursday, 31 January 2008

Who's Interest are Interest Rates in?

Interest rates drop we pay less on our mortgages
Interest rates only drop if the people in power tell us were on a economic downturn
So on one hand we feel good for paying less on our mortgages
On the other hand we begin to worry due to the economic forecasts

Interest rates rise we pay more on our mortgages
On one hand we begin to worry due to the increased monthy payments
On the other the government tells us it’s a good sign the economy is doing well, so in order to control our spending we will charge you more on your mortgage
We are still spending when rates rise but the money is going to the banks and the government in the way of stamp duty.

We are controlled by fear of what our financial future may be, which is propagated by the government, and banks through the media.

Does that make sense to you?
Why do we believe the so-called experts?
Is there another answer to the political line?
Have you personally experienced economic changes in line with interest rate fluctuations?

Our fear of lack of determines our financial destiny not the spin given to us through the media. A good salesman can sell anything a bad salesman cannot, The good salesman understands the game and what people want and he gives it to them.
The bad salesman doesn’t think deeply enough, he thinks his success is based on what he has to sell and his environment not himself. A lot of us fall into the same trap.
Bad news and economic forecasts only affect those who do not know how to change their personal situations.

The government announces economic growth do you personally experience this in your life at the time of the announcement?
If not why do you think you will experience the opposite if the government announces it? We are conditioned to think that way is the answer.

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