Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I learned that words like "collapse" and "bubble" have become popular and misused terms, like many others.
I learned that most people are whiners and complainers.
I learned that the United States is the biggest waster of resources on the planet but, on a per capita basis, most other countries are worse, it is still the greatest country on earth, perhaps not as much by far as thirty years ago, but still the greatest country on earth.
But that's of little consequence, because I also learned that wealth is in the heart.
Although, I was lucky not to be directly affected (i.e. have a job, lose investments), I have learned to do without many things: buy a "less well appointed" car, go only sparingly to the movies, buy less clothes, eat out much less often.
I look for high quality and haggle on the price, even in chain stores.
Since my wife and I chose to save money and live below our means anyway, it wasn't that big a deal to our personal finances. We took an investment hit because so much of our assets are in commercial real estate, but we are in it for the long-term anyway.
To me, the major lesson is macroeconomic. The residential real estate bubble and all the attendant fallout is proof that the government should stay out of the real estate business. Australia tried it, too, in the early 20th century and their GDP took a 10% haircut. Wind down FMAE, FMAC, and the FHA and stop using housing as a way to socially engineer and build wealth. It's a no-win proposition.
That in a modern technology-driven economy there are far fewer workers needed to feed and supply the masses than there are workers available. This results in an oversupply of workers and downward pressure on real wages for many workers. The productivity gains from technology are out pacing the gains from demand. This is a short-sighted opportunity as demand erosion will accelerate without wage and participation growth. There are opportunities, many of them next generation infrastructure, power generation, and transportation system related, but they require a huge concerted effort and investment that is too risky and long-term oriented for most businesses to take on. It is not likely that government or government/private partnerships will fill that gap anytime soon given the current climate toward government involvement and a poor track record over the past few decades.
For me it was Real Estate as an asset class. Never in my lifetime have I seen such a crash in home values. I no longer think of my home as an investment, but rather a place to keep out of the weather. Even in 1990 I only saw a 10% drop in values, but this last time in California was 40 to 50%. We bought a home here in Nevada in 2011, and my house in California sold half of its estimated value in 2006. I now have a much greater respect for the other four assets classes.
I beg to differ for this exceeds a tablet from the holy mountain. I have never seen such excellence in the expression of agreement. However if I ever decide to dine with you, I will be sure to hold off an overly ambitious bus boy since you are sure to want to finish off someone else's plate. I am that impressed with you.
-Pay yourself first (as in before you pay your bills, put some of it away)
-Make the best out of what you have
-I enjoy walking more than any group fitness class (aka cancelled gym membership)
Since my wife and I chose to save money and live below our means anyway, it wasn't that big a deal to our personal finances. We took an investment hit because so much of our assets are in commercial real estate, but we are in it for the long-term anyway.
To me, the major lesson is macroeconomic. The residential real estate bubble and all the attendant fallout is proof that the government should stay out of the real estate business. Australia tried it, too, in the early 20th century and their GDP took a 10% haircut. Wind down FMAE, FMAC, and the FHA and stop using housing as a way to socially engineer and build wealth. It's a no-win proposition.
The real estate business is da guberment. The ground rent is an asset cause da guberment says its yours The major lesson that ought to be leaned is pouring credit into even moderately monopolized industries grows debt far faster than any kind of real capital or equity. If da guberment is there right behind anyone willing to take on 40 year mortgages, that is what you will need to put a bid against, but don't expect many more good views of Central Park.
Compare to a car loan. Such a thing is met with more cars in a brutal, competitive, global automobile market. Might not be good debt on a personal level, but in the aggregate its benign.
But since winding down FMAE, FMAC, and the FHA applies, take the credit for understanding the problem.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
