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Old 04-14-2019, 09:58 PM
 
7,680 posts, read 7,084,614 times
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There's a lot of insecurity because jobs are being moved to contingency status and can be let go at any time.

doubled in last 15 years and may double again

I used to do some work for Worldcom. They let go a quarter of their contractors every six months to weed out the bad ones. By having a general RIF, it prevented some managers from holding onto buddies/cronies and avoided lawsuits for breach of contract. Other companies, such as IBM, let them go before 12 months to avoid their being reclassified as employees of the client.

The other source of insecurity is the housing market since a lot of people can't get into the ownership state due to high prices and lack of starter home construction.

People who are doing both of the above, outsourcing and renting, are going to be especially nervous about their future.
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Old 04-14-2019, 10:28 PM
 
6,505 posts, read 3,499,450 times
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Because Wall Street isn't Main Street. And much of what's good for Wall Street is actually bad for Main Street.

The run up in stock prices has to come from somewhere. The only question is who is left holding the bag when the giant Ponzi scheme fails.
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Old 04-14-2019, 11:08 PM
 
7,507 posts, read 4,819,041 times
Reputation: 12950
The recent gains in the stock market, while certainly welcome, are nowise prodigious by historical standard. Over the past 20 years, cumulative gains in the American stock market have been below historical standard. In most other nations, the results have been even worse. So it is unjustified to claim that Wall Street has been doing particularly well. It's only been doing well over the past 10 years, relative to the preceding 10 years - which were the worst since the Great Depression, and in some regards even worse than that.

Also, the US dollar is overvalued, and shows no signs of returning to more reasonable valuation. That bodes ill for international trade or the long-term vitality of American business.

Finally, innovation - real innovation - is slowing down. Look at the productivity growth rate today, and compare it with the supposed bad old days, such as the 1970s, or the 1930s. It is quite a bit worse. Sure, we continue to innovate and to make gains... but not at the rate that our grandparents were able to make gains.

The ultimate cause for insecurity is a sensation that the mechanisms of growth that powered the 20th century aren't as operative in the 21st.
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Old 04-14-2019, 11:22 PM
 
Location: Honolulu, HI
5,990 posts, read 1,674,619 times
Reputation: 8416
Many Americans don’t like capitalism and would prefer starving in bread lines unde socialism. The simple fact is that this economic system is as good as it gets, and if you don’t like your social class then its your job to change it.
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Old 04-14-2019, 11:27 PM
 
Location: Houston, TX 77082
244 posts, read 46,058 times
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Because the economy IS bad, prices keep increasing health insurance is not affordable housing is not affordable grocery is getting more expensive. This county is turning into a hell hole, I’m seriously considering moving to Northern Europe where people actually have something called a high quality of life
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Old 04-14-2019, 11:29 PM
 
Location: San Josť, CA
3,130 posts, read 5,687,729 times
Reputation: 2626
Quote:
Originally Posted by pipsters View Post
Well that's a first - I've never actually heard anyone tell someone buying a car with cash is an "absolutely boneheaded move". Because of some previous financial instability in our lives we wanted the security of knowing we owned the car outright. While it had less monetary value, it had a high psychological one.

The problem with just "giving money" to people is they just won't utilize it like they would if they ever earned it.
If that's a first, then clearly you're not one to seek out financial advice from others, and further explaining your rationale makes it sound even more boneheaded than before. If you had said that the market was in a down turn at the time and you felt it best to make nothing on your money as opposed to losing it, then we could agree that it was a good decision. But who would give a dealer $21,000 up front, not finance the car at literally 1-2%, keep liquidity and leverage that cash in the market where you're likely to make 8-12% on it in that 5-6 year span... yeah, it's a silly thing to do. I've only purchased one new car in my life but it was 0 down, 0% for 5 years. You better believe I didn't add an extra dime to that principle because you would have to be a complete bonehead, right? Right.

So, the whole point of this exercise was simply to show that even smart people (you're probably pretty smart) with privilege (you have that too) make mistakes financially. It's not their utter brilliance that predetermines that they're going to be successful, or their sheer will. If that was the case, a whole lot more people would be experiencing your level of success. Maybe my attempt to show why you should be more humble than you seemed in your first few postings was laborious, but you really should think of your own success as less about you and more about circumstance than anything else. That's not going to make for a good How I Built This Podcast, but being successful typically involves failing upwards and there are a great many people who are not allowed to fail upwards; there are a great many who aren't given the opportunity to fail at all.

And unless you're truly producing something, inventing something, etc, then your success is so very replaceable by the next person walking down the street. The moral of the story is that none of us are as special as I think you tried to intimate early on in this thread.
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Old Yesterday, 06:04 AM
 
Location: Central IL
14,608 posts, read 8,078,113 times
Reputation: 34302
Quote:
Originally Posted by reneeh63 View Post
I sure would like to meet a humble millionaire who offered real advice instead of broad platitudes and basically disparaging anyone's who isn't a millionaire.
Quote:
Originally Posted by pipsters View Post
I could offer advice but most would not care or would say "that isn't possible for me" or some such reasoning. You just have to find your own way.
Sorry, wrong emphasis. So - humbly acknowledge the other factors outside yourself! Good parents, (some) good luck, good economic timing, good contacts, favorable dieties... But whatever, I know I still wouldn't get it so why would you make the effort to explain? Except you DID manage to make your original post so I am grateful for your inspiration.
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Old Yesterday, 07:37 AM
 
857 posts, read 640,509 times
Reputation: 1056
Quote:
Originally Posted by llowllevellowll View Post
If that's a first, then clearly you're not one to seek out financial advice from others, and further explaining your rationale makes it sound even more boneheaded than before. If you had said that the market was in a down turn at the time and you felt it best to make nothing on your money as opposed to losing it, then we could agree that it was a good decision. But who would give a dealer $21,000 up front, not finance the car at literally 1-2%, keep liquidity and leverage that cash in the market where you're likely to make 8-12% on it in that 5-6 year span... yeah, it's a silly thing to do. I've only purchased one new car in my life but it was 0 down, 0% for 5 years. You better believe I didn't add an extra dime to that principle because you would have to be a complete bonehead, right? Right.

So, the whole point of this exercise was simply to show that even smart people (you're probably pretty smart) with privilege (you have that too) make mistakes financially. It's not their utter brilliance that predetermines that they're going to be successful, or their sheer will. If that was the case, a whole lot more people would be experiencing your level of success. Maybe my attempt to show why you should be more humble than you seemed in your first few postings was laborious, but you really should think of your own success as less about you and more about circumstance than anything else. That's not going to make for a good How I Built This Podcast, but being successful typically involves failing upwards and there are a great many people who are not allowed to fail upwards; there are a great many who aren't given the opportunity to fail at all.

And unless you're truly producing something, inventing something, etc, then your success is so very replaceable by the next person walking down the street. The moral of the story is that none of us are as special as I think you tried to intimate early on in this thread.
Ahh yes, I have "white male privilege". You've cracked the code. Except in my industry that is actually a negative and reduces your chances of making it to career jobs.

Being from CA I definitely expected that to come from you. At least the truth is out. Bye.
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Old Yesterday, 07:45 AM
 
857 posts, read 640,509 times
Reputation: 1056
Quote:
Originally Posted by reneeh63 View Post
Sorry, wrong emphasis. So - humbly acknowledge the other factors outside yourself! Good parents, (some) good luck, good economic timing, good contacts, favorable dieties... But whatever, I know I still wouldn't get it so why would you make the effort to explain? Except you DID manage to make your original post so I am grateful for your inspiration.
I had some of the worst economic timing possible for my industry. It spanned 9/11 through the 2008 recession which killed many careers, and has been known as "the lost decade". I refused to give up and kept expenses low which allowed me to jump to jobs and opportunities as they came available.

People attribute way too much to luck. Except a lottery winner. Ok yeah that's pure luck. But for most of us, luck is a combination of factors that make it seem like we were "lucky", but that decisions made over years culminated into that opportunity. Playing off luck as the reasons for success just discourages others from being able to make their own. IMO.
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Old Yesterday, 08:08 AM
 
857 posts, read 640,509 times
Reputation: 1056
Quote:
Originally Posted by lchoro View Post
There's a lot of insecurity because jobs are being moved to contingency status and can be let go at any time.

doubled in last 15 years and may double again

I used to do some work for Worldcom. They let go a quarter of their contractors every six months to weed out the bad ones. By having a general RIF, it prevented some managers from holding onto buddies/cronies and avoided lawsuits for breach of contract. Other companies, such as IBM, let them go before 12 months to avoid their being reclassified as employees of the client.

The other source of insecurity is the housing market since a lot of people can't get into the ownership state due to high prices and lack of starter home construction.

People who are doing both of the above, outsourcing and renting, are going to be especially nervous about their future.
My wife works for a large tech firm that uses a lot of contractors. She was one too, but was converted over. They do it because so many hires just don't work out. Example, she has three reports and one, whom she hired last year, after seven months is starting to have an attitude problem. As a contractor she can call up the agency and let her go immediately. No strings attached. The better workers are converted over, and actually are offered a lower salary to be full time. So it's not really about money.

That's a good fluff piece but completely ignores/glosses over decisions that person made in his life prior to where he is today, and how he ended up where he is. (through no fault of his own mind you! Yeah right).

I have empathy for many people. I really do. It's just that when you boil down the issues they have today, it's mostly due to a chain of decisions going back years. At any time the chain could be broken but eventually it gets to the point where there is no return, and you end up the subject of an NPR story. And time and time again our media and many people rationalize bad decisions. This is one reason personal responsibility is lacking more and more these days. His decision to go back to school was a good one, but he also chose to not move (not even very far away!) to continue full time employment and instead actively chose to be a contractor. Just one more link in the chain. Meanwhile I put 6000 miles on uhauls and a half dozen residences to climb from one job to another to obtain needed experience. All for a crappy low paying job at the end! But I knew it would eventually lead to bigger and better.

Last edited by pipsters; Yesterday at 08:23 AM..
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