First of all let me state right up front that my understanding of economics and the current melt down would best be described as somewhere between marginal and margarine. Based on what I hear other people saying about it----I would gather that I am not alone. A common thread that seems to run through these opinions is that most people define their view from a position of LOSS----“WHAT WILL IT TAKE TO GET BACK TO THE WAY IT WAS?”----or, from a position of WAITING----“HOW LONG WILL IT TAKE FOR US TO GET BACK THERE?” The other day I did a post equating the situation to a 6” balloon that had been blown up to be twice as big as it should be. Regardless of its 12” size it was still “really” just a 6” balloon----and even more vulnerable than a balloon already is. I have made LOTS of mistakes in my life and have lost everything (Material things) twice----it is only now that everyone else is loosing everything, that I have come to realize that I never had anything to loose to begin with----that all the money that I have never been able to put away, or invest, has also evaporated for everyone else that did put some away or invested it "wisely." I always knew that I would never be able to retire, and so I made sure that I always loved what I was doing----now it looks like I will have lots of company in non-retirement. As long as we think that what is “valuable” can be totaled up on an Excel spreadsheet, stored in a garage, worn to the mall, or put our kids through college, we will always be vulnerable to blowing up the balloon past its intended size. We don’t need a tea-party to throw off the oppressors that are taking everything away, we need a tea-party to celebrate how rich we are----and everyone is invited. So you see the real question does not seem to be, “How can we get back to where we were?” ----but more about, “How can we get back to where we are?” Charles Buell Seattle Home Inspectors, Charles Buell Inspections Inc, Seattle, WA
If there is any “consistency” in what I hear it is that EVERYONE has the “right” answer----or at very least everyone else’s answer can not possibly be right----and most seem to be willing to have their own personal “melt-down” in support of their opinions. This seems to go beyond the typical rhetoric spewed by political parties----that have their own agendas----and seems to touch something much more personal. It is usually difficult to have a “bigger view” of things when we are talking about things that appear to be robbing our wallets.
To accept that the current economic climate is a “crisis” we must first accept that the place we have fallen from is some place we should strive to get back to. Perhaps that place was merely an illusion to begin with. This goes way beyond the idea of “bubble busting.” It is almost as if we have succumbed to some sort of collective hypnosis that compels us to actually believe we have lost something. The concept that anything can “burst” seems flawed to me in itself, and in a way seems like a way to justify our feeling sorry for ourselves for our poor choices or "unluckiness." After all, if something “actually” falls apart, as opposed to returning to some logical paradigm, it is easier to save face in the light of losing millions in “artificial value.” Kind of like, since we are all in the same boat, we all sink or swim together. What this type of thinking does not take into account, in my opinion, is that, “WE HAVE ALL ALWAYS BEEN IN THE SAME BOAT ALL ALONG!”
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IN the end an illness brings in to focus how little any of the excel spread sheet items count for anything. But havig said that it would n=be nice to be comfortable materially with out worry
Hi Charles -- Very insightful. This meltdown is sure causing a re-assessment at a very basic level for many folks, myself included.
I resemble that mistake part of the post. I just posted a question on Facebook, If people bought homes in an "up market", and now people are buying homes in a "down market", shouldn't we get rid of the judgemental up and down, and just call it "The Market"? Love the quacks me up.
Charlie, I think it is only natural to want to handle the "comfortable" parts of our lives. I think it is just as important to keep in mind that their are NO guarantees and---shit happens----that can thwart the best laid plans. Health care is a HUGE one----one major illness or accident can put most of us out on the street pretty quickly:)
Chris, thanks---re-assessment is always a good thing:)
Joe, thanks---it is the mere peception of "ups and downs" that sucker us down the slippery slope:)
Life can't just be about $$$. This past year has given all of us reason to reflect on exactly what is most important to us !!!!
Charles, I really liked your post very much. Up/Down, Black/White, Good/Evil, Hot/Cold, War/Peace, Love/Hate...we are, as Joseph Campbell wrote, "in the duality of our nature." How can we get back to where we are? How can we get back to where we are not?
After a while, I had to stop reading all the market stats and "insider" market updates and just dance with the date I had with me. Too obscure? My bad. The real estate market we have is the real estate market we have, so just be there. A funny thing happened when I did that...business!
Charles,
It only took me losing everything once to truly understand what is important in life. Of course I was a kid in the Oil Bust so it could have easily been twice.
We see greed on a daily basis but we also see the fruits of ones labor who has led a very simple life.
Where were we? Where we ever there or have we been here the whole time? More importantly who are you and where the heck am I!
Good Monday stuff Charles! God Bless.
Charles I totally get this one. People are so focused on the bottom line they forget what really matters. Sure it's nice to have a nice home, business etc. But I know that if I lost everything I could start over again but there is one constant thing......me. I opened my company in 2006, opened a nice new office in 2007 and things took a dive. But I didn't give up. I shifted, stayed postive, figured out how to surrive and thrive as best we could. So far we made it work. And if I wouldnt' have I'd still be just fine. We are not our business or 'stuff'.
How bout those folks that got caught with the Ponzi guy being sentenced today? Now that's loosing everything and then some. Lots of those folks were retired and now what? We talked about that over breakfast this am and it all comes down to one thing.........being grateful for what's in our lifes right here and now (and I don't mean material). We have so much to be gratful for.!
Thanks for the thoughtful and inspiring post!
Michael, it sure has
Scott, not too obscure at all:)---we all should
Russell, I think I was a slow learner:)
Anna, I hear so many stories about vanishing equity, useless stocks etc. Most people did not think they were "gambling"----that they might as well have gone to Vegas.
Such a good post...hope everyone reads this. I like the fact that retirement has never been your plan. Being proactive, always, and doing the things one loves to do, is the real recipe for success. It's never about what is "visible".
Li, well---it is not so much that it has not been my "plan"----the events of my life just took me down a different path:)
Charles - As I was reading this, I was thinking that it might have better been titled, "Words of wisdom wrapped up into this little blog." This is one of the many reasons I don't mind being one of the younger souls around here. I'm able to learn from your experiences and mistakes. I only hope I'm also able to learn from own. Well done, my friend.
Nice way to put things into perspective. When life shifts - go with the flow.
Life is what you make of it. It's not the "things" you have that make your life. And yes, I try to remember to have this attitude when I'm living in the land of milk and honey too.
Jason---in the immortal words of Buzz Lightyear, "This is no time to panic"----the mistakes WILL happen:)
Teresa, it takes a lot more work to paddle upstream----especially when you are trying to go the other way.
Tammy, it is very easy to forget the basics here.
All I know how to do, is forge ahead with a positive attitude. You're defeated if you don't.
Patricia Aulson
Stating grounded, keeping what's important in sight and in perspective should be our daily guide. People got caught up in a wave of artificial prosperity. Now reality has grabbed every one by the short ones and woke 'em up!
We made a deal with our four daughters quite a few years ago to stop us if we ever contemplated retirement. But taking it a step further, I will say the last few years, especially since last September with the stock market doing a huge kerplunk and real estate in NV taking a dive underwater (how ironic of the desert) that accepting "what is" has been cathartic. A letting go. Kate Ford
Patricia, I think many are confused as to which WAY is forward:)
James, and in this case a Sunami of artificial prosperity.
Kate, perhaps a "12 step program" is in order?
Charles......do I detect on odd twist here? I noticed your comments and they're......funny and what an interesting sense of humor you have!
Hey where is the land of milk and honey? Let's move there............as long as it's downstream.
Anna, I have had to develope a sense of humor to not see the world as a cruel joke:)
Charles: Amen to that, brother... I grew up in a musicians family and played professionally for several years. I never ever thought about retirement... guess I don't need to now, either... Yet, I'm a Renton boy (i.e. the very definition of frugality)... Just trying to live within my means. Especially this last year, I thank my Dad (bless his sole) for the lessons he taught me. He who owes little or nothing, is FREE.
Rene, I would imagine it is a safe bet that most artists/musicians can hear what I am saying:)
Charles,
Thanks for keeping us grounded and not bursting our 6" balloon!
What is retirement? I don't think I've ever learned what the word means. Congrats on the feature.
Charles...
The stuff is just stuff. So many people haven't figured that out yet. There's a good chance they never will. All that's really happened is Real Estate went back to the way it was before the boom. Or was that the big bang? :)
TLW..ROAR!
Charles, Dad who just turned 90 was telling me the other day that in his opinion what we are seeing today has a deeper and wider reach than the Depression. Dad (retired banker) attributes the accumulation of debt to be the reason along with the fact that families lived more frugally than we have since WWII. (That's World War II for youngins')
And get this, Dad had a pet squirrel during the Depression. It was a pretty respectable pet (unlike someone we won't mention). I'll try to post the picture of Dad + pet tomorrow. Kate
Irene, you mean like that boat above?:)
Barbara, I have to say I look forward to not retiring. It seems to me that there is a huge relationship between dying and retiring:)
TLW, I think that "there is a good chance they never will" is sooooo true.
Kate, I have heard of people with pet squirrels----after all pet rats are common---why not squirrels?
Charles, me not being the economic genius either, I never liked "too big to fail in business." Poppycock! Balderdash! The balloon blows up. Get another balloon. Life goes on. Too much greed by many is the root cause.
Gary, didn't they used to say that Dinasaurs were too big to fail? We all know what happened to them:)
Charlie,
In many cases the losses are exaggerated as to everybody "losing" everything. As you know, I had a substantial business and sold it years back. My funds are in stocks, bonds, real estate. My net worth is down maybe 15% to 25% from where it was four years ago. How far one is off has a lot to do with what one was invested in. I think many of us still have piggy banks, but they are not as full as they were. But to imply that all is lost is only the case for few, and maybe those folks did not diversify and spend money wisely.
Steve, I think you are probably right---but to listen to some you would think the sky is falling or that your situation is the exception. Most people's reaction seems to be more like the 6" balloon got blown up to 12" in diameter and now it is 2" in diameter. To me that just does not jive with the fact that the vast majority of us are still eating 3 meals a day and still have jobs. While there is some grumbling and adjusting going on I just don't see "collapse"---I just see a lot of soul searching with a smattering of whining to go along with it:) When the McDonalds and Starbucks have vanished---THEN we will be in real trouble. Until that happens people have not REALLY started to hunker down----haven't started to get back to basics.
Charlie,
Yes, it might be worse if we were in Detroit area too. Then the whole Bernie Madoff ponzi scheme is getting so much publicity now. That could have happened at anytime, even when things were very robust. However, there is story after story about people losing all, which they probably did. But that was a scam, not real investments. Those schemes have gone on forever.
I like your comments about McD's and Sbux - seriously, we are still not killing chickens (or the family pet duck) in our backyards like my grandma did, or gleaning fields like my Oma did after WWII. We are growing more veggies and getting back to basics, but we will probably come out of this pretty quickly. I'm not ready to eat squirrel and dandelions, ok???
Charles- I have always been taught and believed that it is not the stuff but rather what we do with the stuff. You can always make more money but you can never make more time. So that brings many things into perspective for those of us over 50:)
While I do believe if we allowed the big ones to fail and to allow the chips to fall where they may- we would be much better off than to cuddle and keep putting off the inevitable To try to suppress that which must take place is enabling people to keep living on credit, etc. If we fail, it hurts, we fall down, then we learn our lesson and get back up, dust ourselves off and move on.
But I also believe that much of what is going on is not about stuff but about the loss of principles. The loss of values. It is in those principles which we need our leaders to get back to. I will not sit by in apathy or acceptance as I watch my liberties being stripped away. While many people sit around and sulk in their losses of finances, credit, stuff, etc they are not even paying attention to what is really going on- the stripping away of liberty. Complacency and inaction leads to demise of free nations. Katerina
This is a really interesting view of the whole economic crisis and puts a very different spin on everything. Perhaps those with little or nothing are better off than those who had something?
Dawn, thanks---it really can get SO much worse than it is right now.
Katerina, the loss of principles and worship of stuff I am afraid go hand in hand.
Christine---like I said, we are all in the exact same boat and denial doesn't seem to help:)
Charles - The key is the ability to keep things in perspective. EVERYTHING is relative. Our sense of loss is only possible by comparison with our previous or another's abundance; but it actually means nothing. It's good to reflect on the truly meaningful aspects of life; and while I sometimes lament what I perceive as negative experiences, I can still enjoy the gift of the present moment, a true "present."
"It is easier to fight for one's principles than to live up to them." --Alfred Adler
I am always a tad weary of the discussion of principles. Whose principles are we talking about? A starving mother with children to feed in northern Africa may well have different principles than the person who can feed their family in Kansas.
The principles used in context with the current financial mess in this country may well be different from those principles shared when the economy was booming.
Principles seem more like leaves: one thing on the tree in Spring and something different when floating to the ground in Fall.
John I agree that everything is relative. We can not even have a sense of the "positive" without the "negative" for it to be relative to.
Scott, I think we have to be very careful with "situational ethics." On the other hand if one does choose a different path, one better be willing to take the consequences.
Mr Charles,
I cannot determine if I have lots of money or not, please give me a reference point.
Your admirer, Nutsy
I figure I will have to work an additional 10-12 years to make up what I have lost in the last 1...
Nutsy, start with the number "0" divide by 100, multiply by 1000, add another "0" and that will be the total amount you are worth times 10.
Jay, I figure I will be grateful if I can work for another 10-12 years:)