“Also, I think it’s wise to consider what our debt situation was then vs. now, and also what our economic prospects look like in the future.”
The economic prospects always look dismal in a trough.
My starting salary as a software engineer in Sorrento Valley in 1993 was 38k. I had a B.S. in Computer Science from a top college. The job market then was terrible and very few people were getting jobs at all.
I think that people are forgetting just how awful the job market and the economic prospects were in the early to mid 90’s. Of course, in a few years that all changed in the blink of an eye and times were good again.
Also keep in mind that during the 90’s the low in the fed funds rate was 3% in 1992. We are now at 0% with additional QE measures. Money is far cheaper now than during any time period in the 90’s. Yet in the 90’s we still managed to recover.
Is it different this time? Who knows. As CAR says place your bets. I think it really is a coin flip at this point.
