We can also presume a general guideline that those who inherit wealth and succumb to FOMO are eventually less rich while those who are wealthy and take a pass on FOMO/ hoarding at the top of the manic craze increase their wealth.
Evaluating by the panic buying of whatever from houses to private yachts to lumber futures, it seems the world has actually lacked everything other than newly issued central bank trillions, therefore the rational action is FOMO (fear of losing out) and hoarding: purchase whatever you can get your hands on today lest it become not available or more costly tomorrow.
FOMO is wonderful for sellers and profiteers who can boost costs and take pleasure in bidding wars throughout the panic buying.
FOMO and hoarding are instinctual behaviors to lacks, viewed and real. There’s nothing rather like the rise onto the last bus or train of the day when transportation is limited. Money ends up being garbage when you need whatever is scarce and you hesitate you won’t have the ability to get it at any rate.
All this is logical when the risk of what occurs if you lose out is existential. As in, not getting in a boat suggests you drown, not getting some water means you pass away of thirst, and so on
. However is not having the ability to buy a brand-new satisfaction craft or house in a preferable area actually the exact same? It feels the very same way to the people caught up in the craze of FOMO, however FOMO and hoarding feel the very same whether the deficiency is real or perceived, and the feelings triggered by shortage are urgently intense: if I lose this bidding war, my life is over, etc.
. On a lower however still painful level, we do not like losing or being left as the circus leaves town. If you’ve ever been bumped from an airline company flight or been not able to get on that last train, viewing all the glossy pleased people board the aircraft while you’re left in the fetid terminal with the janitorial crew is not a warm and fuzzy feeling.
There’s another intense emotion that comes into play a bit later: purchaser’s regret. The bidding war excites an excitement rather unlike other forms of engagement, and the bliss of winning seems like the jackpot is yours, ripped from the greedy grasp of the undeserving at the last minute.
Then the ecstasy fades and the sick awareness that you’re on the hook for hundreds of countless dollars sinks in. At this moment regret that one forgot the logical, calculating part of the mind and dashed head-long into the “last seat on the lifeboat/ last roll of toilet tissue” FOMO/ hoarding.
One of my guidelines is to consider what advantages those at the top of the wealth-power pyramid. If we consider the case for hyper-inflation, for instance, it’s difficult to make a case for hyper-inflation benefiting those who own most of the country’s financial possessions, i.e. the leading 0.5%. Yes, the super-wealthy can move all their wealth into gold and bitcoin, but this needs sacrificing the income from all the possessions that were sold to get away hyper-inflation.
Would not it be cheaper and simpler to just call a friend or three and make it known that hyper-inflation does not work for you? Needless to say, it likewise does not work for the bottom 99.5% whose revenues spiral down the drain in hyper-inflation.
We can also presume a basic guideline that those who inherit wealth and succumb to FOMO are ultimately less wealthy while those who are wealthy and take a hand down FOMO/ hoarding at the top of the manic frenzy increase their wealth, as they prepare for a symmetric deflation in most of the FOMO/ hoarding cost spikes.
Simply put, it’s worth contemplating the possibility that cash will not always be garbage, and that overbidding by $400,000 to get “the last home in Cape Cod” neglected the possibility that it wasn’t actually the last house which suitable alternatives may be remarkably less expensive in a year.
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