There are macro-economic factors at play as well, but ^ yeah.

5/2/2008 2:24:19 AM

I'm not saying that people's lives are getting turned upside down. I was just trying to make the point that everybody lost money, and it wasn't because of stupidity.

And it is a big deal to some people.

And it's not cool for a bunch of twelve year-olds to act like it isn't a big deal and like anybody who's concerned right now just didn't plan well enough.

Quote :

"No, I'm saying that it doesn't matter whether or not they're secure, and it doesn't matter whether or not people are losing money if they planned things properly. Step 1 in unfucking your finances (well, aside from paying off certain debts, like credit cards) is to establish a nice, fat wad of cash money as a safety net."

Of course, safety nets are good. Everybody should have them. But a safety net still doesn't change the fact that you lost money, and not everyone is young enough to shrug shit like that off.

I don't think you've been reading my posts. I separated my posts from the folks in the original article by my second post, I think. I'm not talking about people going crazy and selling off all their stuff.

Quote :

"I'm down something like 25% from where I peaked in my stock portfolio. At the worst, I was down 30%, and you know what? I couldn't give a shit less. I hope the stock market takes a huge tumble again, and the bigger and sooner, the better! I've finally accumulated enough free cash to buy into another meaningful stake--I'm just waiting for a slide to do it. I don't care if it takes weeks or years for the market to recover...I won't be touching any of that money for decades. If I was going to need it sooner, I would have a much larger chunk of money in other holdings like cash and low-risk bonds...then I could expend that money while waiting for the stock market to run up again, at which point I could use my money from there."

You are so badass. I'm wildly impressed with your cavalier attitude and masterful understanding of buying low and selling high. Top notch opportunism. Bravo.

Quote :

"The point is that this is simply a hiccup, and not even a big one. If economic downturns (especially a minor one like this) turn your life upside down the way some of these sob stories are going, it's because you were living in a house of cards to begin with."

Again, not talking about those people.

5/2/2008 2:58:24 AM

Quote :

"Again, not talking about those people. "

OK

Quote :

"I'm not saying that people's lives are getting turned upside down. I was just trying to make the point that everybody lost money, and it wasn't because of stupidity. "

Quote :

"Of course, safety nets are good. Everybody should have them. But a safety net still doesn't change the fact that you lost money, and not everyone is young enough to shrug shit like that off."

I don't want to come across as talking down to you, but re-read what I wrote. My point is that if you do the right things (and these things aren't rocket surgery), it doesn't matter if you lost money. You'll get it back from the places you lost it by the time you need it. In the meantime, use the money that DIDN'T go away (cash, CDs, money market, probably bonds, and even a few stocks).

5/2/2008 3:06:54 AM

^Yes, I got that. I think you're not getting my point, which is that people lost money and it wasn't because they were stupid and it is a big deal.

You say they'll get it back, but losing money is a big deal even if you get it back a couple years later. People may have wanted to buy their boat now, take that safety net of cash, and sail into the sunset today. Not a couple years from now. People's shit is getting fucked up.



I want to reemphasize that I mainly object to the tone of folks in this thread.

5/2/2008 3:32:00 AM

the money going into retirement savings, the rainy day fund, and the money to pay for the boat should be seperated, though

and if you have to wait a year or two to buy a boat, i'm sorry, but that does not constitute a "big deal".

5/2/2008 3:36:21 AM