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wow what happen?
Old 03-20-2009, 05:34 PM   #1
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wow what happen?

ABC News: Down But Not Out: From Hedge Funds to Pizza Delivery
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Old 03-20-2009, 06:52 PM   #2
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Don't these high earners save any money? The guy spent the entire $750K per year?
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Old 03-20-2009, 06:57 PM   #3
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Don't these high earners save any money?
According to this, many of them don't.

"...50% of Americans said they have only a one-month cushion -- roughly two paychecks -- or less before they would be unable to fully meet their financial obligations if they were to lose their jobs. More disturbing is that 28% said they could not make ends meet for longer than two weeks without their jobs.

And it's not just low-income earners who would find themselves financially challenged. Twenty-nine percent of those making $100,000 or more a year said they would have trouble paying the bills after more than a month of unemployment."


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Old 03-20-2009, 07:06 PM   #4
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Twenty-nine percent of those making $100,000 or more a year said they would have trouble paying the bills after more than a month of unemployment."

This blows me away. Makes me think I'm not so stupid after all.
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Old 03-20-2009, 07:41 PM   #5
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These media scare-tactic articles are designed to make people think "wow, things really ARE horrible," I think (which is a separate issue; I think they are designed to create fear which I think is reprehensible in a crisis of confidence). But when I read these articles I think, "wow. How ridiculously irresponsible and short-sighted to have that kind of income and not put some of it away to secure your future."
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Old 03-20-2009, 07:45 PM   #6
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Somewhere in the article the guy was quoted "... this is a lesson in humility". That did not sound quite right to me. Shouldn't it be "... this is a lesson in stupidity"?

Anyway, take a look at the other extreme. I can't decide which guy is worse.

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Old 03-20-2009, 07:50 PM   #7
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He did put some away . He had $500,000 in savings which he used when he started his hedge fund . It probably would have lasted a lot longer if he had lowered his standard of living . Now he's had it lowered for him !
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Old 03-20-2009, 10:12 PM   #8
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Once upon a time you dressed so fine
You threw the bums a dime in your prime, didn't you ?
People'd call, say, "Beware doll, you're bound to fall"
You thought they were all kiddin' you
You used to laugh about
Everybody that was hangin' out
Now you don't talk so loud
Now you don't seem so proud
About having to be scrounging for your next meal.

How does it feel
How does it feel
To be without a home
Like a complete unknown
Like a rolling stone ?

Your daughter's gone to the finest school all right, Miss Lonely
But you know you only used to get juiced in it
And nobody has ever taught you how to live on the street
And now you find out you're gonna have to get used to it
You said you'd never compromise
With the mystery tramp, but know you realize
He's not selling any alibis
As you stare into the vacuum of his eyes
And say do you want to make a deal?

How does it feel
How does it feel
To be on your own
With no direction home
Like a complete unknown
Like a rolling stone ?
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Old 03-20-2009, 10:33 PM   #9
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I have a nephew like that. He was having a ball selling vacation real estate in Ocean City, MD. Sold five million worth of property in six months, bought the Lincoln Navigator.

Now he's bagging groceries.
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Old 03-20-2009, 10:40 PM   #10
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I have a nephew like that. He was having a ball selling vacation real estate in Ocean City, MD. Sold five million worth of property in six months, bought the Lincoln Navigator.

Now he's bagging groceries.
I worked 4 years in a supermarket - high school and college. I'd hate to ever have to go to it.
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Old 03-20-2009, 10:42 PM   #11
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I want to reach out to the guy. He cant be that dumb.
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Old 03-20-2009, 11:10 PM   #12
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I want to reach out to the guy....
Someone already has...........

The Karpmans are now on food stamps and a tight budget that doesn't nearly cover their children's $30,000 private school tuition. But thanks to an anonymous donor, the Karpmans children's tuition has been covered through next year and they are deeply appreciative
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Old 03-21-2009, 05:38 AM   #13
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Someone already has...........

The Karpmans are now on food stamps and a tight budget that doesn't nearly cover their children's $30,000 private school tuition. But thanks to an anonymous donor, the Karpmans children's tuition has been covered through next year and they are deeply appreciative
Where I live, you can send your kids to school for free.
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Old 03-21-2009, 06:23 AM   #14
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Yeah, I guess I think its easier to save and invest for the future when you make that kind of money. Maybe it isn't? Do you think your standard of living slowly creeps up with you? Sort of like slowly getting fat, and then realizing "Geez, I'm really fat and have to do something about it!"
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Old 03-21-2009, 06:34 AM   #15
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Some of these idiots need to have the plug pulled! They are very sick IMO! I hope the kids plan to support them after the $30K per year education they get (wonder if that is both of them and it is elementary level).
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Old 03-21-2009, 07:14 AM   #16
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I think that many of us would have had different priorities if making $750K/year. Maybe we would give a higher priority to having a substantial emergency fund than to start-up costs for a new business. Instead, the guy took a huge chance on a new business and it didn't pan out.

Many who make that kind of money also make it a priority to prepare for the worst, just in case - - paying off the house and loans, setting up trust funds, and such. Frankly, some would think it incredibly stupid not to do so.

In some ways this man's plight may be similar to that of a hypothetical lower income person, say someone making $60K/year, who decides to quit his job and put every dollar he had into starting a new business, say a dress shop, despite having a mortgage and a family to support. When the dress shop fails, due to his poor planning he might be without an income as well. One big difference is that when the dress shop fails, the lower income person can hardly expect the national media to whip up sympathy and for others to pay for the children's education. And, the lower income person doesn't have as valuable a resume as an asset to help in finding future opportunities.

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Old 03-21-2009, 07:23 AM   #17
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Old 03-21-2009, 07:56 AM   #18
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According to this, many of them don't.

"...50% of Americans said they have only a one-month cushion -- roughly two paychecks -- or less before they would be unable to fully meet their financial obligations if they were to lose their jobs. More disturbing is that 28% said they could not make ends meet for longer than two weeks without their jobs.

And it's not just low-income earners who would find themselves financially challenged. Twenty-nine percent of those making $100,000 or more a year said they would have trouble paying the bills after more than a month of unemployment."


If this isn't a crash and burn scenario I've never seen one.

The people in Washington need to study the numbers and get in touch with reality. Is the American consumer really in need of more money to borrow, are they really wanting to take on more debt?

With 50% living on the edge of disaster it sure looks to me like the old American consumer is maxed out. And I think we are in the process of breeding another generation of depression era savers. The longer this pain goes on people will get tired of being stressed out each month. Very slowly the bills and loans will get paid off and saving will start.

The longer people are hunkered down the less likely they may go back to the old ways. Even if people don't sink in a pool of red ink they will maybe learn something by having their whits scared out of them.
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Old 03-21-2009, 08:06 AM   #19
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If this isn't a crash and burn scenario I've never seen one.

And I think we are in the process of breeding another generation of depression era savers. The longer this pain goes on people will get tired of being stressed out each month. Very slowly the bills and loans will get paid off and saving will start.
Hopefully it's already started and it will take hold. The mainstream has lived beyond their means for far too long, it's at the root of our current economic problems. My fear is that memories will fade and the mainstream will go back to their (way) over-leveraged tendencies...but I hope I am completely wrong.

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U.S. households socked away most of the extra income they got in January from annual cost-of-living raises, boosting the personal savings rate to a 14-year high, the Commerce Department said Monday.
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Old 03-21-2009, 09:35 AM   #20
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I feel sorry for the guy and at the same time, think - wow don't you have any common sense. The story ran on 20/20 or whatever the name of the show is last night and they have been living in that house for 2 years without paying the mortgage. Most normal people would have been evicted way before that. ....and they have run up $100,000 in credit card debt. The wife hasn't attempted to get a job from what I can tell - other than working the snack bar at the Little League games so the kids don't have to pay the fees. I can't help but think with the $100,000 in credit card debt that they haven't really adjusted their life style other than not getting the pool repaired or the hot water heater in their master bath.

And when they are foreclosed on - they will have to move to a small apartment which won't hold all the wife's clothes - well among other things - less face it their house is huge. Then they will sell things on Craig's List. What are they waiting for?
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