With financial woes across the globe, I ponder about the mechanisms of financial systems and about people across the generations.
I remember asking someone about 10 years ago if every known assets in the world were to be liquidated at the same time, would there be enough money to sustain it. I think the answer is rather obvious and even more so today.
The same question can be asked in the context of bad economies and Governments. Governments of every affected nations are speaking of stimulus packages, bailout plans, and fiscal budgets to reduce deficits. America is hoping that money will enter its country, China is doing everything it can to keep demands for its goods, Europe is also creating employment and wealth through stimulus budgets and Japan is doing likewise. Assuming money supply is not increased, from where in the world is the money going to all these nations? For every single lottery winner or casino winner, there are innumerable losers. The picture is not that complicated. Many people ‘invest’ their money [temporarily part company with their money] for one or few persons to gain [temporarily no doubt].
Now consider the mindsets of the younger generations.
Many folks born to post war baby boomers and to their children are raised in an era of plenty. [pardon me for generalising – referring to the growing economies]. Most of them have not been trained or conditioned to handle deferred gratification. Every ‘ah’, ‘ek’ gets a response. Every whining / tantrum gets attention [though labelled negative attention]. Every guilt trip thrown at parents get a material compensation. Every good deed [including good grades] demands a reward.
The 30 something and younger generations find it hard to visualise what is ahead, much less to plan. This is not a matter of blame but a fact to be reckoned with. The wars, climate change, health scares, terrorist attacks, and batteries that do not last longer than a few days, etc have created a ‘perceived’ reality that life cycle is short.
Why plan so far ahead? Why should the young ones in Middle East care about the distant future since life might be taken from them anytime? Why should the young in America deprive themselves of current indulgence since they would inherit the debt of the current generation? Why would the young in China toil and be frugal like their parents when they see the unattractive lives their parents lead?
The idea of the stock market / financial markets, however, appeals. ‘I can be in charge; I can let my money grow; I don’t have to sweat; Short term gain is more my cup of tea than longer term investment.’
We have lost the virtues which are part of the older generation:
- deferred gratification
- sacrifice / intentional losing
- savings
- respect for elders
- others centred
I will be most glad to be proven wrong.
A generation that answers text messages in the middle of sleep at night; engages in electronic distraction in the midst of a lecture or tutorial; talks on the mobile phone while serving customers / providing security services did not happen overnight.
It started with watching TV at 1 year old; playing computer games at 2-year old; using mobile phone at 3-year old; using wii at 4-year old; internet surfing at 5-year old; owning mobile phone / iPod at 7-year old; owning personal computer and paraphernalia at 13-year old……..
A potent combination – sick financial systems and a generation with appetite for short life cycles…..
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