What is the best lesson you may have learned from the 'Great Recession" (borrow, money)

[hawaiishrimp]

During the recession, I learn to be patient, maintain my investment philosophy, don't get panic, keep cash at hand, and when buying opportunity come: buy low and sell high.

[cvap]

I learned that people have very short memories. Who started the push for home ownership by removing credit barriers in the mid nineties? It was Chris Dodd and Barney Frank. The same people who tried to correct their own mistakes with more screwed up laws right before their retirement.

[MJ7]

Never put all your eggs in one basket.

[petch751]

I've lived through 2 recessions, then hyper inflation. When starting out (1986) we couldn't buy a house (high rates). Rates dropped housing prices skyrocketed. I couldn't understand how others were doing it.. what was I doing wrong? (about 5 years before the crash) I went to see about a mortgage, "yes you qualify, and if you want a bigger house you qualify for the pay interest only for the 1st 5 years mortgage" I was told. Instantly I understood what was going on. People were overextending themselves. I decided not to buy.

Friends would ask why we didn't buy. One even making hurtful comments. I will resist reciprocating as our home is paid in full, retired young while that person works 2 jobs and is struggling in their upside down house. Paying off the mortgage may not have been the best route but I've seen people lose their houses.

A rainy day always comes (emergency fund),
Just because your friends are doing it doesn't mean you should,
Everything (including the weather) always changes,
Don't try to act rich if you're not rich,
Love of a job could turn to hate fast (leave options open),

The strangest thing I learned is when you try to play rich you're usually poor, but when you act poorer, you are usually better off than many that are playing rich.

[hawaiishrimp]

Originally Posted by petch751

The strangest thing I learned is when you try to play rich you're usually poor, but when you act poorer, you are usually better off than many that are playing rich.

So much true.

[mysticaltyger]

Originally Posted by Rakin

The next 2 elections will be critical and get a real leader in the White House.

I think that's delusional. The people with integrity don't even get to run for president. And even if an honest person slips through, they get shot at and are kept in line--witness Kennedy assassination and attempt on Reagan--oh yeah, that's right, they were shot by random crazies (sarc.).

[mysticaltyger]

Originally Posted by StarPaladin

True that personal responsibility is important -- but please keep in mind as well though, that in many areas of the country that have a high cost of living (i.e., NYC, LA, DC, FL, etc.), the artificially and astronomically-inflated prices of even modest homes make many, many people priced out of the market from the start, right out of the gates

I live in one of those areas (SF Bay Area). While it's certainly true many people are priced out of the housing market here (and the rental market, too)...this has been a known thing for a long time. Going into huge debt in to try to "afford" to live here doesn't make sense. These expensive metro areas aren't family friendly for most people. The level headed people who want the single family house with the picket fence admit reality and move elsewhere. If more people were level headed and made the tough decisions up front, prices and rents wouldn't be bid up so much in the first place.

[fumbling]

Stay away from debt and have fun living like a recent immigrant is the way to go.

[sholomar]

Don't fight the fed. (by that I mean federal reserve of course)

[Larry Siegel]

Save money. You never know when you will need it. (Simple, huh?)