What’s up with these “opportunities?”

[Rich Toscano]

[quote=spdrun]The crash was only scary for idiots who didn’t engage their brain before signing on the dotted line in 2005 to 2007.[/quote]

I guess you didn’t hear about that little incident known as the Global Financial Crisis.

[spdrun]

I wasn’t scared when markets were falling in 2008. I immediately thought “cool beans, buying opportunity.”

It wasn’t a crisis as much as a correction — practically speaking, you realize that buyers will jump in eventually. Happens during/after every correction.

[Rich Toscano]

[quote=spdrun]I wasn’t scared when markets were falling in 2008. I immediately thought “cool beans, buying opportunity.”

It wasn’t a crisis as much as a correction — practically speaking, you realize that buyers will jump in eventually. Happens during/after every correction.[/quote]

So, your argument is that because you weren’t “scared,” the financial crisis was no big deal? Like, to all the people who lost their jobs and stuff? This is the argument you are making?

[Coronita]

.

[spdrun]

They lost their jobs either due to:
(a) globalization or innovation
(b) being in an industry that didn’t make economic sense: i.e. building homes out in Desertcrack, NV

The crisis didn’t affect jobs that were actually needed.

[Balboa]

Until we have universal basic income, jobs are actually needed … by people who need money.

[Rich Toscano]

[quote=spdrun]They lost their jobs either due to:
(a) globalization or innovation
(b) being in an industry that didn’t make economic sense: i.e. building homes out in Desertcrack, NV

The crisis didn’t affect jobs that were actually needed.[/quote]

That’s basically ridiculous.

[spdrun]

Point being the people who lost their jobs during the crash would have lost them anyway. A lot of barely profitable factories closed due to foreign competition and shitty American management, and would have gone into the crapper one way or another.

Or never had them in the first place if there wasn’t a bubble (if you’re talking about barely skilled navvies putting up hovels in the middle of the desert).

[Anonymous]

[quote=spdrun]actually needed.[/quote]

There are two possible definitions of “actually needed”:

1) Something is needed because someone else is willing to pay for it. This is the definition universally accepted by economists because it is objective and measurable with real-world data. If someone actually pays for something, then that something is needed by definition.

2) Somebody’s personal opinion about what someone else needs.

Of course the second one is correct, as long as it’s my opinion we’re using.

[spdrun]

Right.

The problem was that people weren’t willing to overpay for poorly built McHovels in the middle of the Nevada desert. Nor for mediocre American goods built with overpaid labor that obstructed cost-saving automation measures.

Some people automate themselves out of a job. Others obstructed themselves out of work.

[Escoguy]

Even for those of us who had good stable jobs, the crisis was scary as hell.

Stock market down 54% in less than 17 months.

Even with regular cash flow, I stopped buying stocks.

Yes the recovery has been strong but it wasn’t clear it would happen.

A correction in home prices as necessary but the crisis went well beyond that.
Back in ’03-’06, I thought perhaps prices would pull back 10-15%, even 20% would seem extreme. But I didn’t think we would get to below replacement cost (i.e. free land) and for a while it was almost like that.

Even years later, there were bargains in real estate, but each of those caused real pain for the families who lost their homes even if they bore a significant portion of the blame by being over leveraged.

In the mean time, don’t go down the road of USA makes nothing as we prove that wrong every day. There is so much industry in SD County, do some research in the companies like GKN Aerospace, General Atomics, Dexcom, Northrop.

The list is long and very amazing and great people do things here everyday.
My company exports to 40+ countries and yes it’s not easy but that’s life.

[spdrun]

I never said that USA makes nothing. I’m saying that workers at poorly managed companies with abusive unions (like Generic Morons) got burnt. All manufacturing didn’t disappear, just that which was inefficient.

As far as pain, no one ever said that you should make a $200,000+ investment without engaging your brain. Stupidity has a price. And next crisis, bet some of the rubes who are buying with 1-3% down are going to be crying again. Such is life when you jump without thinking.

[Anonymous]

[quote=spdrun]As far as pain, no one ever said that you should make a $200,000+ investment without engaging your brain. Stupidity has a price. And next crisis, bet some of the rubes who are buying with 1-3% down are going to be crying again. Such is life when you jump without thinking.[/quote]

People who buy with 1%-3% down are not making a big investment.

[Author]

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