Let's Talk About Money...

Let's talk about money, the making of it and the lack of it. My work allows me to see the behind the scenes of the financial lives of individuals, and boy do I see.
My conclusion is as follows;
1. We aren't as smart as we like to think we are. 2. Our emotions drive a larger part of our financial decisions than we are willing to admit. 3.Our background is the single most important factor when it comes to making silly financial decisions. 4. (Warning stereotype statement approaching). I can tell an individuals race by looking at the financial history 97% of the time. 5. Low income individuals tend to overestimate the depth of their 'inabilities'. That is, rich people get too much credit for their wealth. 6. High risk investment is highly addictive, it is the easiest route to being rich and poor. 7. Advisers warn clients not to make dumb choices but they often go ahead and do the same. 8. You can not be grounded to the point that the markets can't have you.
I know the above points are fluid, I may go into details in subsequent posts but for now I will leave you with this short story.
The collapse of the sub-prime and in a way the prime markets is no longer news. Have you ever wondered where those Range Rovers, S55's and the fancy cribs go? It is rather surreal when you watch people get filthy rich and then get shot down from those lofty heights in front of your very eyes. I have stories tonnes of stories, but let me share the latest one that happened yesterday with you.
I had a high performer, walk up to me asking me, "do you want to take over my payment for my truck (Range Rover), you can have it tomorrow morning." As a good salesman he threw in some side deals and other goodies. After I declined the offer which looked too good to be real. He proceeded to ask if I could loan him $100. There isn't much to this exchange until you consider the fact that this dude made close to a million dollars in the last 3 years. What? How can you rise and fall so fast? A story too familiar these days.
High performer: A.K.A I can sell sand to the Arab, pumped up energized fella, nobody knows his secret formula but it does work for him.