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Old 07-29-2007, 07:30 PM   #21
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bunnies don't go to court
Eh, I usually just had my lawyer go and call me afterwards to tell me about any funny parts.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Old 07-29-2007, 07:44 PM   #22
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During the early 80's I was a single Mom with two young children .I worked like crazy just to pay for the basics and I did overtime for summer camps ,etc..It was hard but it was during this time that I realized I had to figure out how to pay for two college educations so I started saving and I never stopped . The second scarey point was 2000-2001 I was widowed and lost in a day as much as I lost last week .It came back but slowly .
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Old 07-29-2007, 07:45 PM   #23
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1982: Having made the brilliant decision to move from Chicago where I had a growing business, a 2 flat where the tenant almost paid the entire mortgage and all, to move to Houston the month the oil patch dived downwards until it hit 10.5% unemployment about 1-1/2 yrs. later.
And the house I bought plummeted within a year and a half about 23% or more, but I kept the house and just kept going. I figured we had to live somewhere, and Texas was at that time more progressive in their educational system than Chicago was (have no idea about now), so the son benefited.
My sister is married to a surgeon there, and they lost EVERYTHING including their house, their cars, everything about 1985-86. That was pretty common then. People don't elect to have elective surgery when they aren't sure they will have the insurance to carry them, and nobody felt secure about their jobs then hardly.
It was nothing in Houston in about 1983-85 to meet teachers, business owners, nurses, policemen and so forth who simply walked away from their houses because they now OWED more than the house was worth. People were declaring bankruptcy right and left. It was horrible.
In fact, credit agency people would tell you that "before" the crash in Texas if you declared bankruptcy it was a stigma on you, but during that 1980's time if you declared bankruptcy it was no big deal anymore. It was THAT common...and that was only 10.5% unemployment. How BAD WAS IT during the Depression? I surely hope I never have to find out on a personal level.
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Old 07-29-2007, 08:00 PM   #24
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Didn't really start investiing til the 90's. 2000-2002 was frustrating watching my balances continue to drop despite dollar cost averaging new 403b contributions at or near the max allowed. But the last few years offered rewards for staying the course through that stretch. Now there's more on the table and I have to admit that the absolute value (as opposed to percentage) of (hopefully) short term account gyrations like last week *is* a bit more unnerving. Still staying the course and even did a *little* extra buying last week.
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Old 07-29-2007, 08:00 PM   #25
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I painted that picture
You painted that picture? All this time I've been trying to figure out why you had a picture of Thunder Bunny....

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Old 07-29-2007, 09:16 PM   #26
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I have had many hard times in my 59 years starting June 13, 1955 when I was 7. My dad was injured at work, we were living very poor then but he couldn't work for 4 months. My brothers were 6-8 and mom took us to get work. The 4 of us picked green beans from sun up to sun down to earn money. I earned about 50 cents a day maybe less. When we went back to school the teacher asked us to bring dimes or pennies for march of dimes and I said I wasn't going to ask we couldn't afford it.
I left home at 18 with $50 and a suitcase, no job lined up or anything got a ride to the city and someone I knew said I could stay with them until I found a place. I was pretty poor but not that bad.
I got down to my last 20 cents once in the early 70s but had a car to sleep in and got a job right away that paid daily so not so bad.
1983 has to have been the very lowest point in my financial life. Interest was 14.5% my mortgage was 930 per month with no equity. My ex was an alcoholic that took up drinking and was violent and didn't work. I would work all day then go to Alanon meetings then home where he played loud music all night so I couldn't sleep. I had to really pinch pennies to get money to pay the bills on my little paychecks and sell things for food money. Dec 27, 1983 my life took a turn for the better, I left him the house, his truck and started over with my old car that only had 5 payments left. My parents let me stay with them and I had an uncashed Christmas bonus and 3 days to payday. I was working a CPA firm so all the overtime I wanted so worked 435 hours by the end of April and got my first IRA before April 15.
I lost money in the 2001 crash and lost a great job in 2000, I will never earn that much again but have a decent job, no husband and I can pay all my bills.
This little downturn the last couple of weeks cost me 26K but I still have over 400K left.
Nothing could be as bad as the fall of 1983.
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Old 07-29-2007, 09:33 PM   #27
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This little downturn the last couple of weeks cost me 26K but I still have over 400K left.
Not to make light of the hard times you've been through but the above quote stuck out at me as I was thinking of 1987. If you look at a chart of the SP500 it went from about 315 down to 225 in four days. That drop ending on Black Monday is equivalent to the Dow going from
14000 down to 10000. Something to think about when mentally stress testing your portfolio. The newspapers for months later were showing parallel plots of the 1987 crash and the 1929 one.

Les

P.S. CFB -- I like your new avatar!
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Old 07-29-2007, 09:37 PM   #28
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P.S. CFB -- I like your new avatar!
Sweet, huh?

Of course, my old one had its charms.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Old 07-30-2007, 07:40 AM   #29
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I'm fortunate that I have not suffered through any financial hard times.

In 73-74, I was still in high school and didn't notice much. I was working at a pizza place for minimum wage and there was this thing called an oil embargo, but I didn't have driver's license much less a car, so I didn't notice.

In the late 70's and early 80's I was in college in Houston working as a custodian to pay for it. I heard of some folks walking away from their houses, but I was too broke myself to really care. I had to eat expired food sometimes to get enough calories. Only years later when I read the history of the period did I realize how bad it was in Houston. In the late 90s some of my friends still had condos that were worth less than they paid for them.

In 1987, I had been working about a year in a job with a 403b and my investments tanked in October by what was it? 40%? , but since I didn't have much in investments it really didn't bother me.

In 2000-2002, I saw my investments (100% equities) drop by 25%, then more. I had a decent job, so I cannot recall any suffering.
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Old 07-30-2007, 02:17 PM   #30
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Late 70s 13% interest on a home mortgage. Gag. Then 1987's downturn. However, neither ruined us and even made us stronger. The interest made my husband and I sit up and actively start to manage our finances. The 1987 downturn wasnt as bad for us as we look back as it was for others and showed us the true value of diversification.

We have exceeded every goal we ever set and are ready to retire with security in the bank and the portfolio. And since we stuck it out to the minimum retirement age, government health insurance and two pensions.
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Old 07-30-2007, 03:57 PM   #31
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Sweet, huh?

Of course, my old one had its charms.
Thanks for getting rid of that Playboy bunny. I was afraid someone would look over my shoulder and accuse me of sexual harrassment. I do like the new one. Go Barry!
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Old 07-30-2007, 04:01 PM   #32
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I was afraid someone would look over my shoulder and accuse me of sexual harrassment.
Just tell them its your sister. AND TO QUIT LOOKIN' AT HER!
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Old 07-30-2007, 10:58 PM   #33
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When we were paying 14.5% interest on a house in the early 80s was the first time I learned it was OK to live on future money. I had always avoided debt, never had a credit card and seldom any debt except maybe a small car payment. Suddenly people were buying things on credit because prices and wages were going up so fast. I was making 750 a month in 1978 and was up to 30,000 a year by 1989 so it seems I was wrong to wait and have prices on what I want go up faster than I could save.
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Old 07-31-2007, 08:44 AM   #34
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Early 80's. I had just gotten my Builders license. We built our first home and lost our butts on it.Very scary times.
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Old 07-31-2007, 08:53 AM   #35
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Reading some of the replies, it is hard to imagine the interest rates some of you all to pay for homes back in the early 80s. Then again, despite the crazy interest rates you paid and the pain it cause, you may have had the chance to buy an asset for a much more reasonable price than today assuming you refi'd along the way.
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Old 07-31-2007, 09:35 AM   #36
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you may have had the chance to buy an asset for a much more reasonable price than today
I think homes vs salaries in some areas were a better deal back then, but my recollections from working in the late 70's were that if you made 20-25k a year you were doing pretty dang good, and if you could hit 40-45k you had godlike earning potential.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Old 07-31-2007, 09:38 AM   #37
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Yeah, I was just going by the general belief that low interest rates prop up asset values and vice versa. No proof to support it.
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Old 07-31-2007, 12:58 PM   #38
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Is this the three word thread?

Starving college student
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Old 08-03-2007, 03:38 PM   #39
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Is this the three word thread?

Starving college student
I've never had so much free money as when I was a college kid. I had no responsibilities, good jobs, scholarships, and no concept of my future responsibilities. I lived frugally but could have easily spent more. I started out with a LBYM mentality.

I had everything I wanted but I didn't want very much. I think it was the classic case of measuring yourself economically against your peers.
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Old 08-03-2007, 04:28 PM   #40
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I've never had so much free money as when I was a college kid. I had no responsibilities, good jobs, scholarships, and no concept of my future responsibilities. I lived frugally but could have easily spent more. I started out with a LBYM mentality.

I had everything I wanted but I didn't want very much. I think it was the classic case of measuring yourself economically against your peers.
1964-1970 were the toughest years of my life: I didn't qualify for any college financial aid: scholarships, loans, even on-campus jobs that went begging, because my parents refused to fill out the forms, they understandably did not want to reveal their financial information. I worked my way through and sometimes operated ditto and mimeograph machines for my classes (without pay) as they couldn't fill the jobs and I had learned how to operate the machines during my "drop-out" semesters. The second time I dropped out, the college sent me a questionnaire asking why. The rules were changed the semester after I graduated: students who could prove financial independence (another definition of that expression!) could qualify without parential info.

I cannot describe the migrane I had when I realized my parents would never fill out those forms; they pressured me to finish and my dad even bragged about having three children in college at the same time. Those were frugal days but I had friends who were even poorer; catsup soup, anyone?
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