To solve the crisis we must first overcome the fear

Fear, lack of confidence, is the element that makes it more difficult to get out of the crisis, economic and in fact can make us stay in crisis for longer than it should.

Much is said about the loss of billions of dollars in the financial system and on the part of hundreds of companies.

While that is true, money has not disappeared , it is somewhere, only it is not in the hands of those who lost it, naturally.

Money if there is. The North American financial system has in its pocket billions of dollars of aid received from the government, just to give an example. What happens is that those who have the money, because of the crisis, are afraid of taking it out, of investing it, of spending it.

Companies are suffering from a big liquidity problem, since society has stopped consuming, some because they do not have money, others because they are afraid to spend it.

In times of crisis, whoever has money prefers to protect it so as not to lose it, or simply because it considers that it will need it later to survive, which is a trap that prevents the economy from becoming dynamic, there is paralysis due to lack of liquidity, having money, a paradox undoubtedly.

It’s the same thing that happens to banks. The banks do have money, what happens is that they are afraid to lend it because they consider that due to the crisis there is a high risk of losing it, and with what has happened to them, they have to be afraid.

Money if there is, what there is not is trust. The consumer, the investor, the entrepreneur and the banks are fearful, so they prefer to keep their money.

The crisis will begin to give way when people, investors and entrepreneurs lose their fear, when they gain confidence, so everything must be aimed at regaining that trust.

Deja un comentario

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *