Time for me to set down my thoughts on the so-called credit crunch I thought.
My first thoughts surround the law of the self-fulfilling prophecy. I’m one of those who thinks much of our current troubles are of our own making and have been exacerbated by media hysteria. ‘Property prices down 3% this year’ they trumpet. Well so what, they’re still massively above where they were three or four years ago. Down 3% where exactly? Your street? Mine? 3% is an average so some property will have lost more than this I grant you, but other property will have lost no value or even increased. If you can afford your mortgage falling property prices are irrelevant until it’s time to sell. Even then you might win because the price of your target property will have dropped too. What about a headline that says ‘Property prices fall 3% this year: The first-time buyer crisis is over!’?
My second thoughts – and I’ve got my coaching hat on here – concerns how individuals react in these times. Who is responsible for the problems we face? Gordon Brown? China? The Bank of England? This debate could go on forever. But if I ask who is responsible for taking steps to improve your personal situation and respond to the credit crunch. There is only one answer: You. If a sales person decides to stop calling his clients because nobody has any money, then he won’t make any sales: If he can’t be bothered to ask for new business the answer is already No. If that same sales person decides that the current times mean they need to make twice the number of calls to maintain their ratios then I’ll bet a fiver they’ll do ok. Furthermore they’ll absolutley clean up when conditions improve. And they will you know? I’m on my third recession and I’ve ignored them all.
I’m not trying to be glib and ignore the real hardship some people now face. I believe our government could and should do more, but the sooner we all get back to oiling the wheels the sooner we can get the train moving in the right direction again.