Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelertoing Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Financial Success Formula Failure

Stock-Markets / Financial Markets 2019 Aug 13, 2019 - 01:20 PM GMT

By: Patrick_Watson

Stock-Markets

The US economy grew at a 2.1% annualized pace in the second quarter, according to data released last week. That was better than economists expected but hardly impressive.

Even President Trump recognized this, tweeting the growth rate was “not bad considering we have the very heavy weight of the Federal Reserve anchor wrapped around our neck.”

That’s the same Federal Reserve of which Trump himself appointed the chair and a majority of board members. But I guess he has to blame somebody.


Sadly, though, quite a few Americans really do have financial anchors wrapped around their necks. I recently reported on Federal Reserve survey data showing 39% of American adults can’t cover a $400 emergency expense without borrowing money or selling something.

That story drew a lot of positive response, but distressingly, I also heard from people who would rather blame the victims.

It’s their own fault, you see. They don’t know “The Secret.”

Missing Factors

My Left-Behind Economy article provoked some disagreement. Several comments went like this (paraphrasing):

“These people who don’t have $400 for emergencies should have done like me: work hard, save money, live frugally. It’s their own fault. They get what they deserve.”

Let’s unpack this.

First, congratulations to these financially stable readers who made good choices. However, it’s worth asking: What enabled those choices?

Success comes from good decisions but not everyone has the same menu. The choices in front of you are different if, for instance…

  • Your parents were a hedge fund manager and a corporate lawyer, or
  • You got a college athletic scholarship that let you earn a degree without accruing student debt, or
  • You’re the child of a single mom who had to work instead of help you study your math and science.

Are these choices? Not really. Even hard-training athletes benefit from their genetic attributes and coaching.

That doesn’t relieve us of responsibility, of course. We can all make the best of what we have. But the data doesn’t support this idea that everyone “gets what they deserve.”

That’s obvious when you think about it. If the formula is…

Hard work x frugal living x smart decisions = financial success

… then everybody who does those three things should get the same results. But clearly they don’t.

  • We all know smart people who work hard and live simple lives, yet accrue very little money.
  • We also know less-than-intelligent folks who waste their time and cash, yet stay wealthy.

These exceptions tell us the equation must have other factors. Yet people still believe it.

Law of Attraction

American culture is deeply invested in the “self-made man” idea, that anyone can do anything if they just put their mind to it.

That stems partly from our Puritan religious heritage. Calvinist theology said God favored the chosen “Elect.” If that’s your belief, you are highly incentivized to prove you are in that group. Those who appeared unfavored were sometimes shunned.

Versions of that attitude survive today—sometimes overtly in “Name It and Claim It” fundamentalist sects, but more often in tacit form. Otherwise non-religious people fervently believe their own talents and hard work led to a kind of financial redemption. They insist others must follow this same plan of salvation.

This idea exists in New Age movements, too.

Remember The Secret book and film? It was wildly popular in the early 2000s, describing a “Law of Attraction” that made success inevitable if you wanted it badly enough.

(Saturday Night Live did a hilarious satire you can watch here.)

The implicit flip side Oprah didn’t mention: Anyone who isn’t successful must be somehow deficient. You should avoid them so it doesn’t rub off.

From there, it’s a quick jump to “They got what they deserve.”

No One Wins Alone

We all need a little motivation to work hard and do our best. Slothful behavior doesn’t have the immediate life-or-death consequences it once did.

But more often, we take it too far. Very few people achieve financial and career success on their own. They had help—from family, friends, strangers, and yes, the government. There shouldn’t be any shame in that.

In economic reality, no one fails or succeeds alone. So the question is: Who helps whom, and how? It can happen many different ways, some of which work better than others.

But we don’t have that discussion if we’re busy lauding ourselves for “success” that isn’t fully ours and denigrating others who haven’t achieved the same.

These attitudes are far less common in some parts of the world. Those regions are growing faster. Maybe there’s a connection.

The Great Reset: The Collapse of the Biggest Bubble in History

 New York Times best-seller and renowned financial expert John Mauldin predicts an unprecedented financial crisis that could trigger in the next five years. Most investors seem completely unaware of the relentless pressure that’s building right now. Learn more here.

By Patrick_Watson

© 2019 Copyright Patrick_Watson - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules