Recession Best Thing Ever For Non-Graybeards

Ever notice how most of the people bitching the hardest about the recession are old people? Here’s an alternative view, and how the economic meltdown might just be the best thing ever if you’re under 35, have a job, and aren’t strapped with debt. [MSN] (Photo: hanapbuhay)

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  1. TheUpMyAssPlayers says:

    Ding ding that’s me! Yay!

    • stevejust says:

      @TheBursar: Yeah, I keep saying to my parents “Look, I’m sorry for your losses” too as they look up from their cans of fancy feast they can’t even afford to heat up.

      Anyone who is under 35-40 and hasn’t bought a house and reads Ayn Rand obsessively should be loving this. Anyone who understands how the economy is interrelated and dependent on many different pieces working well to function won’t like any of this at all, even if their parents are dead (rather than eating cat food) or regardless of how they feel about their parents, or any other humans on the planet suffering through this greed-induced collapse.

  2. Yossarian says:

    I’m sure the 23 of them will make out like bandits.

    • shifuimam says:

      @Yossarian: One can only hope that there are more than 23 people in the United States who aren’t colossal idiots.

      Fortunately, I’m on that list. The only way this recession is affecting me so far is lower interest rates on my savings account and a big loss in my 403(b)…but I imagine that will bounce back in the next 45 years before I actually retire.

    • Anonymous says:

      Actually, I’ve found it to be pretty much the opposite. Those I know over 50 are upset but know full well that life isn’t predictable and except to have to work longer. They dealt with firings and recessions before. Those under 35 are running and screaming, blaming everyone from Bush to their boss for the 5% pay cut they’ll have to take.

  3. Moosehawk says:

    I was thinking about this two weeks ago, and even though I’m quite low in the money department, I need to find a way to take advantage of this now.

  4. jackspants says:

    I can see her point, if you can take advantage. It isn’t great if you earn over 75k. The income limits are too low for certain areas, such as Washington DC Metro area, and should be regional. It isn’t realistic to make under 75k and still try to buy a house with more than 20% down when the housing market such as in Arlington dropped only 1.5% in 2008.

    [www.arlingtonva.us]

  5. TheBursar says:

    I keep saying this to my parents. Look, I’m sorry for you losses, but my 401k is amassing way more stocks than it used to with a huge upside when we come out of this and I might finally be able to buy a house in a year or two. A lot of the gains (Housing, stocks) were unrealistic and in hindsight artificially inflated. We’re not really suffering a huge downturn as much as we’re coming back down to earth.
    Anyone under 35-40 who hasn’t bought a house and is employed should be loving this.

  6. pecan 3.14159265 says:

    Unemployment is at a high – how many people still have jobs? A lot, I bet, but how many of those people are worried about losing their jobs soon? A lot, I bet.

    I have issues with a few things…first off, it’s terrible to say the recession is a good thing for anyone. It’s not, because it drags the overall economy down.

    Yes, home prices are dropping, yes stocks are cheap. But it seems to me that the majority of people who were living frugally to begin with know just how low stocks can go, and may be pretty wary of sinking money into the market.

    Credit is tight. How the heck is that a blessing? Unlike your unwise elders, you won’t be able to borrow your way into trouble, at least for a while. You may actually learn to live within your means.

    Is this an insult to people under 35? Why is there an assumption that everyone under 35 is dirt poor or irresponsible with their money? There’s nothing in the article itself to substantiate the age of the irresponsible homeowners. To assume they’re all older than 35 is to assume that everyone under 35 shouldn’t or couldn’t have loans, and that loans always get people into trouble. If anything, people in their 20s are more likely to have student debt, because they’re closest to being just out of college/grad school.

    “The good news: Everybody’s cutting back these days, and the national savings rate has jumped to 5%, so you won’t stand out if you’re careful with your money.”

    I don’t really care whether i stand out with my saving ability or not…the article makes it seem fashionable to be responsible, when the culture of spending and financial irresponsibility was the problem. I’m perfectly fine cutting costs the way I have been before.

  7. fs2k2isfun says:

    I’ve been thinking of day trading stocks. I was talking with an older acquaintance of mine today and he has been doing quite well. I know its high risk, but being 21, I have a pretty high tolerance for risk and am always looking to make a quick buck.

    I start work in May, so I should have some money to throw around then.

  8. wildhare says:

    Let’s just say that I won’t be buying a house or condo until prices start to swing back up! There is no way I am going to buy a dirt cheap house and then be underwater in a few years because I jumped too soon. The goal is not a rock bottom price, but a gradual increase in value over time (preferably the time you plan to live in the thing).

    • pixiegirl1 says:

      @wildhare11: Same here. I would love to buy house right now but I know if my hours got cut I’d be completely screwed.

      • chrisexv6 says:

        @pixiegirl1: If only millions of other people thought just like you, we wouldnt be in this mess to begin with!!

        Repped for being responsible.

        • Shadowman615 says:

          @chrisexv6: Perhaps, but if everybody decides to wait until prices go back up to buy a house, then prices will never go back up.

          I’m not advocating irresponsibility here or anything.

    • SunnyLea says:

      @wildhare11: Well, some people might just want a house… you know… to live in. If the payment is affordable, then that goal can be met.

      If prices increase somewhere down the line, then bonus!

  9. bonzombiekitty says:

    That’s basically what I’ve been saying for the past year or so. Assuming I stay employed, and the market recovers eventually, I’m getting a great deal right now. The only thing is that I have a feeling that when I actually decide to go buy a house (which won’t be for another couple years I think since I’m not sure if I’m staying put), interest rates will have gone back up. On the plus side, I should have saved up plenty for a large down payment.

  10. tailstoo says:

    Damn! I am 36. So I guess I’m screwed.

    • floraposte says:

      @tailstoo: The article went for 35 because it’s considering that 30 years until retirement. If that’s the criterion, it’s great news for everybody under 50.

  11. CubeRat says:

    Well, I made two of the three requirements.
    I am under 35 and have a job. Unfortunately, I made some really stupid mistakes with my creidt cards that I am trying to work my way out of.

    Here’s hoping though that I get those taken care of soon. *fingers crossed*

  12. b.k. says:

    “Ever notice how most of the people bitching the hardest about the recession are old people?”

    Well, yes. If you grew up during a Great Depression you don’t want to go out in one. That’s just not fair, man.

    • Rectilinear Propagation says:

      @b.k.: Yep. If anyone has a right to be scared and angry, it’s them.

      They’re probably also pissed that the depression apparently didn’t convince anyone in charge that it’s a bad idea to tank the economy.

    • MeOhMy says:

      @Trencher93: Not to go too far off-topic but what’s “real insurance” if not the HSA/HDHP system? Every other insurance policy I have has a deductible that I have to pay out of pocket.

      Heck, I kinda like the fact that right now while I’m young and healthy instead of making a generous donation to some bastard insurance company who wouldn’t make good on my claim even if it was valid, a portion of that generous donation now goes into my own account.

    • SunnyLea says:

      @b.k.: @b.k.: I’m guessing by “old people” they didn’t just mean those over, say, 80. (I mean we’d have to be taking into account not just people who were alive during the Depression but can remember it, according to your logic.)

  13. Jfielder says:

    Yeah, it’d be awesome for me… if the company I work for had given me the raise I had been promised, instead of the pay cut I got. I would love to invest, save, and buy a house. But I just don’t make the money to do that much.

  14. ncboxer says:

    The only benefit I’ve seen is less traffic on the way to work. Though it is kind of depressing thinking of all the people at home with no jobs helping me to make it to work more easily.

  15. Segador says:

    Hot potato! 29, employed, no debt!

  16. s35flyer says:

    Just remember this youngsters, your time is coming and the policies being laid out are the ones you will live your life with. I remember the carefree days of youth and graybeards told me your time is coming and guess what they were right. Don’t ever forget it, stay out of debt.

  17. Anonymous says:

    Actually I’m 45 and in an even better position. Sure my house equity has gone down but it’s pretty much paid for and I won’t have to sell it for a long time and the market will rebound by then.

    I work for a level of government and not the private sector and have SO Much seniority that if they started sniping people based on that, it would be decades before they got to me. Under 35s are much more at risk to be laid off.

    I think the whole age issue is red herring. If you’re employed the main factor is its security AND then your level of debt. If deflation sets in and the price of things continues to go down and I’m making a six figure income in a job where I’m essentially unfireable regardless of how things get, my six figures goes that much farther.

  18. oneandone says:

    “best thing ever” is probably taking it to far…. but I’ve been thinking a little bit along those lines. My employer match just kicked into my retirement plan, and I’m a little excited to have that money invested in a way that would have made me waaaay too nervous before. Now it seems like more of an opportunity, since I’ve got at least 30 years to watch it. And the knowledge that it could all crumble so I’m already starting on several back up plans, which I also might not have considered before.

    If only I didn’t have these damn student loans! Then I could run around buying houses and stuff. Or – more likely – get a CD with a nice rate.

    In the meantime, I’m not letting my parents pay for anything (inc gifts) since their planned retirement is probably wiped out. I’m expecting some awkward conversations at the next family dinner.

  19. Eric1285 says:

    I’m 23 and I see this as the opportunity of my lifetime. I’ve been pouring every penny I have into the market. I just surprised that there are so many people my age who aren’t taking advantage of the situation. The vast majority of the friends I graduated with don’t even have a brokerage account set up. I’ve been prodding some of them to get it done, but so far few have acted.

    People my age need to realize that with our timeframe stocks are at a MASSIVE discount right now. Even if you don’t have time to manage your portfolio on a daily basis you stand to make huge gains just by putting your money into blue chips and letting it sit there for 5-10-20+ years.

    Some of my friends have made the right move and actually bought property recently. Most of those have been out of school for a least a couple years though. I’m hoping that housing remains cheap for another few years as I’m not close to being in a position to buy a home yet. I’ve actually been living (and working) with my parents to save money. Every extra penny I have is going into the market and I expect it to be paid back several times over by the time we recover from this depression (that’s right, I called it a depression and not a recession).

    • pecan 3.14159265 says:

      @Eric1285: That’s kind of assuming one has money to invest in the market…I’ve got a bunch in savings, and I’d love to invest if I wasn’t extremely wary..and also being unemployed doesn’t help.

    • shifuimam says:

      @Eric1285: I hope you’re not pouring every penny into investments…don’t forget to have an emergency fund, too…

    • Brontide says:

      @Eric1285: “People my age need to realize that with our timeframe stocks are at a MASSIVE discount right now.”

      You may want to compare our current problems to Japan’s financial meltdown.

      [www.marketoracle.co.uk]

      You can not trust that any stock is “discounted” at this point without a lot of vetting. I’ve moved my money to CD’s and bonds for the time being riding out this mess as I think the market will continue to be dysfunctional for a few years.

    • Brontide says:

      @Eric1285: Also..

      [nancyfriedman.typepad.com]

      I’ve got tens of thousands of dollars that will not be seeing the stock market any time soon because it’s just too unstable.

    • veronykah says:

      @Eric1285: Guessing you and all your friends had college paid for by mommy and daddy?
      Investing in the market or buying real estate? Sure sounds great but the payments on my student loans each month eat up ANY money that could be put towards anything benefitting me as a non-graybeard.

      • Brontide says:

        @veronykah: I will point out that a decent college education can be had without a mortgage sized payment if you are willing to shop around. I paid for college strictly with a savings account my parents created for me ( and put my b-day money into ), working, small grants, and a few loans.

        Just because someone does not have student loans does not mean “mommy or daddy” paid for them to go.

      • oneandone says:

        @veronykah: It’s possible to have your tuition paid for entirely by scholarships, if your family income is low enough. Whenever I meet someone in their 20s who graduated college with no student loans, I assume their family is very wealthy or very much not.

    • supercereal says:

      @Eric1285:

      Some of my friends have made the right move and actually bought property recently.

      It’s definitely ignorant to call home-buying “the right move” for everyone at this, or any, specific time. You’re making the big assumption that every move you’re making is right for everyone (it’s not).

    • orlo says:

      @Eric1285: The discount on stocks is about as massive as the 60% discounts you see on Amazon. Strange that you’re so optimistic if you think this is a depression.

  20. Trencher93 says:

    Actually the exact opposite. With low interest rates for the indefinite future (the banks know how to manufacture a crisis ever time rates start going up) and inflation coming, anyone 35 or under will never have any opportunity to build wealth the way their parents, grandparents, and great-grandparents did. Remember, even before the crisis, the stock market’s S&P 500 had returned zip for a decade, making rosy projections (Dave Ramsey ought to withdraw all his junk from the market with his 8-12% return projections) laughable and the defined-contribution retirement plans hopelessly inadequate. Throw in the move to HSA accounts instead of real insurance (one of the biggest loser deals ever inflicted on Americans), and you’re looking at the Poverty Generation.

    The only real question I see is how the don’t-call-it-socialism state is going to have any money to support itself in a few years. What incentive does anyone have to work?

    • MostlyHarmless says:

      @Trencher93: There are other ways of getting rich, but none of them will make you rich overnight.

      I guess thats a dealbreaker for you though.

  21. UnicornMaster says:

    I actually decided this a long time ago. It took me a while to get to the point where I could save money for retirement. So I missed out on the last 8 years. When everyone else’s savings and investments have lost half their value, now is the time to step in and ride that train back up to the top! Had I actually been saving and investing for the past few years I would have lost money. Now I can make up for lost time.

  22. loki95662 says:

    I’ve asked this before in other forums but nobody seems to have the answer. They say stock is such a goood buy right now but which ones? Pundits have been screeching out good deals for months now but the stocks keep dropping.

    For example is GE a good deal? Sure it’s under a buck but what if they tank? Yes they’re a blue chip and the thougtht of them tanking a few years back would have been unthinkable. Not so much now. Not so good a deal then I bet if you’re holding a bunch of shares no matter what good price you got em for?

    • Brontide says:

      @loki95662: Stocks may be cheap, but I don’t think the market, as a whole, is even close to a “good buy”. There is still more to come boys and girls you may want to read the fine print on your stocks.

  23. jscott73 says:

    “Interest rates are still near generational lows but are likely to shoot up once the recovery begins.”

    Guess what happens when interest rates shoot up? Home prices shoot down. That is the best time to buy, when interest rates are high and you have a lot of money to put down. Then you are getting the best price on a house and still don’t have to make huge interest payments.

    That is when I will buy thank you very much.

    • shepd says:

      @jscott73:

      And, don’t forget, every X years you are going to get a new interest rate. So, unless you’re planning to pay your mortgage off in full before you have to refinance, you’re going to get hit with the higher interest rate.

      May as well get hit with it *and* get a deal on the house.

  24. James Sumners says:

    Those of us under 35 and _without_ a job are not liking things very much.

    • pecan 3.14159265 says:

      @James Sumners: Yeah I’m in that boat. I’m pretty much just feeling really aggravated about this entire mess because it was in no way my fault at all, and I’m getting punished.

  25. RodAox says:

    Yeah, considering 700+ people applied to a janitorial position around where I live this is just great… Great opportunities lie ahead for me because I DONT HAVE A JOB AND FROM THE LOOKS OF IT WILL NOT HAVE ONE FOR SOMETIME.

    Maybe I should invest in crack dealing and put all the proceeds into a 401K so by the time i get out of prison It would have ballooned up to millions.

    This is like saying “hey why pay rent and food when you can get them for free in jail”

  26. SpaceToast says:

    I’m not going to personally diss Liz Pulliam Weston. In general, she seems to have been pushing low-debt-high-savings even when it wasn’t popular.

    There’s no silver lining in this financial crisis. Bankers inflated all assets they could get ahold of — shaky and otherwise, sliced up into the same pot — with a 21st century version of portfolio insurance in order to make fees. There was no endgame, no long-term plan, quarter by quarter, beyond getting into a chair before the music stopped. The fundamentals of the economy are not good.

    There’s no such thing as a secure job right now, just as there’s no such thing as a 20-something out of debt. College is so expensive that only a fraction of a percent of families can finance it; the rest of us must begin life deep in debt, with a BFA worth only what a (free) high school diploma was 30 years ago. No matter what your industry, there are over-35s with much more experience looking — indeed, desperate — for your job. And management knows it.

    Liz’s time would be better spent reminding readers of her old formula. This is not a time to invest anything you can’t afford to lose, if you have the luxury of being able to lose anything. Few under 35 do.

  27. Etoiles says:

    The problem with being under 35 and gainfully employed is that you are likely to have very large student loans.

    My fiancé and I between us could be incredibly well-placed, even in our high cost of living area, but that depends on a few things:

    1.) Neither of us losing our job, and
    2.) Somehow getting past me paying 30% of my net income to my student loan owners, who have been jacking around my interest rate and behaving even more disreputably than credit card companies. (They literally hung up on me the last time I tried to talk to them about this.)

    The other downside of this is, how many late-20somethings and early-30somethings are now going to end up financing their aging parents’ healthcare and retirement, now that mom and pop have nothing left?

    • oneandone says:

      @Etoiles: That’s a really good point.

    • James Sumners says:

      @Etoiles: You should have consolidated your loans directly after school. Maybe you still can. I consolidated my at 5.00% last month — [www.loanconsolidation.ed.gov] . I know that’s the government, but they are the only ones consolidating student loans right now (unless you want to pay a higher interest rate for a traditional loan).

    • veronykah says:

      @Etoiles: Exactly what I was thinking reading this. It sure would be nice to supposedly be able to take advantage of the recession but with the amounts I pay to student loans each month, yeah, not going to happen.
      @James Sumners: I DID consolidate my federal loans after graduation, its the PRIVATE ones that didn’t get consolidated because the interest rates were at 8.25%…now that they are at 4%? They are no longer offering consolidation loans.
      Perhaps the gov should offer all the former students who were subject to the wild west of private loans for the last 10 years some sort of “bail-out”, we were allowed to take out huge loans with variable APRs too…the ability to consolidate those with the gov and lock in a low interest rate and extend my payment terms would help me out tremendously.

  28. cmdrsass says:

    Live it up now kids while the goons in Congress are writing checks in your name. Guess who’s going to pay that back? haha

  29. B says:

    This is sweet, next time somebody complains about the economy, I’ll just call them old.

  30. Oranges w/ Cheese says:

    You’re kidding right? Just because houses are affordable doesn’t mean us 20-somethings have the money to drop to buy one. Consider the fact that you will, in most areas, need at least 10% down on a house, and you’re not going to find a house in good shape under.. 90,000 – unless you’re going for a townhome, which I am not. So that’s 9,000. For most people, that’s several years worth of savings – if they don’t have student loans or car payments or anything else.

    Here in Orlando, you can’t find a house under $120,000. So here you’d need considerably more money. I have $10,000. Its everything I have saved in my life. I’m not able to drop that on a house because, oh wait – say the dishwasher breaks or the door falls down or something.. I won’t have money to buy anything let alone fix that.

    Is it responsible to put yourself into financial crap just because the “opportunities are a’knockin”? No. And it fucking annoys me that everyone thinks everyone can afford a house now. Sorry, they’ve still got at least $20,000 to go for us normal working people.

  31. kingmanic says:

    The unemployment rate is still under double digits. This isn’t a depression it’s just a massive paper recession. It’s the consequence of a market that strayed too far from reality. The stock markets were pushed up by housing prices. The housing prices were pushed up by speculation. People were extracting equity to play stocks or speculating by buying houses and leveraging themselves to pay for it. They used ARMS and other means to cash in on a real estate boom but the boom was a paper creation because aside from speculation there wasn’t a real increase in demand. Like a ponzi scheme the ones in last lose the most.

    Most of the paper wealth vanished when the bubble burst but most of that wealth never existed in the first place.

    for people starting out like myself it’s a godsend. I don’t have to pay $600,000 for a 1400 sq ft bungalow. For the fiscally responsible and for those who lived by “don’t invest in what you don’t understand” we’ll profit from this market error.

    • Brontide says:

      @kingmanic: The U6 numbers are the most similar to GD era reporting that we have. BLS has the U6 at over 16% of the population and it’s rate has been increasing.

      Don’t be fooled by the official number which has been rewritten many time to show the numbers politicians want.

  32. TEW says:

    The deals on travel are great too. I took a vacation and stayed at a hotel that charges $175 a night for $50 just by walking up to the manager and asking him. I am in college so I can’t buy a house but I am saving up for a down payment and funding an IRA. In 3 years I hope I can have %20 down for a house and have a retirement plan that benefits from this downturn.

  33. failurate says:

    Waiting for those baby boomer upper management types to retire so you can finally advance your career and greatly increase your earnings? Tough. That’s going to be put off by another 5+ years.

  34. meechybee says:

    Shouldn’t the stock chart be filed under the “past performance not indicative of future results”?

    I’m all for a sale, but I’d stick with an index fund until you see how the bankruptcies shake out. If you don’t time your exit from the market right (and there is no science to it no matter what the talking heads say), you’ll be bitching too when you’re old and the next bubble bursts.

  35. Applekid ┬──┬ ノ( ゜-゜ノ) says:

    I’m under 35 and I have a grey beard.

    Oh, wait, that’s powdered doughnut sugar. Nevermind.

  36. bilge says:

    If you have the right home at the right price, it’s also a good time. My home just sold after one month on the market.

  37. emona says:

    I’m 23, employed and took this recession as a chance to chop up all my credit cards. I’m about $8K in debt, which isn’t much but it’s plenty for me. My fiance and I are on a plan for our debt: We pay off one of my cards, then one of his, and on and on until it’s over.

    The recession scared me straight, even though I’m not suffering for it. If it gets worse, and I (or my man) lose a job, I’d like to be better prepared. No debt, an emergency fund and little in the way of bills.

    Mostly, though, I’d like to be able to help my father, who is 56 and facing a potential layoff. I can get another job if I lose mine. Could he? Being able to hand him the $500 a month I pay in credit card payments would be wonderful, if it came to that, and wouldn’t tax my lifestyle any more than it already does. If anyone in my family suffers, I want to be able to lend a hand.

  38. opsomath says:

    One more thing the article doesn’t point out: my pathetic graduate student stipend is actually going a lot farther these days, as businesses desperately try to attract anyone with a bit of cash, even a very small bit. (My favorite trend: restaurants selling a cheap meal they call “the stimulus package.” There’s a trendy organic restaurant in downtown Athens which has locally made brats plus a pint of Terrapin ale going by that handle.)

  39. GuidedByLemons says:

    27, good job, no debt, still maxing out my 401(k) by paying into stocks and feeling pretty good about it.

    This recession still sucks though. I’ve lost quite a bit of money both inside and outside my retirement accounts, and that outside money was mostly for a down payment on a mortgage in the near future. On the plus side a lot of it is in bonds at least.

    That, and who knows if I’ll still have that good job in 12 months.

  40. Daveinva says:

    You know what no one has mentioned here?

    The fact that all the trillions of dollars our government is spending right now will be PAID BACK by the non-graybeards, in the form of higher taxes and a weaker future economy burdened by debt and new entitlements.

    The recession is bad for old people? The old people CAUSED this recession, and they’re forcing the young people to pay for their mistakes.

    • orlo says:

      @Daveinva: I think that under-35ers are going to be in for a surprise when it comes time to collect SS and Medicare. So even if your investments do well you’ll make out the same or worse than the previous generation.

    • redkamel says:

      @Daveinva: “only until taxes go up, then everyone will elect another republican to drop them! We’ll NEVER pay it off!”

  41. synergy says:

    That’s me! Time to buy a house. :)

  42. discordance says:

    I take offense to the title: I’m 27 and have a gray beard!

    Oh stress and genetics, how you vex me…

  43. Etoiles says:

    @James Sumners:

    I haven’t been able to reply directly to a comment for some time now, so this is as close as I get. ;)

    My Federal student loans were consolidated immediately after graduation. I have a 2% interest rate there, more or less, and payment plan options. The student loans I took out through a state program turn out to be damn near usury. There are NO payment options except one two-year 50% payment plan I had to exercise when I was unemployed in 2005, and they did like the CC companies do and changed my interest rate because OTHER people were defaulting. I was contemplating a private consolidation in 2006, didn’t do it, and now realize I should have because no-one’s doing them now.

  44. DoctorMD says:

    Yeah the bright side you will be strapped in debt to buy an still overpriced house and have to be taxed through the teeth for the baby boomers social security and medicare. Thats if they don’t add taxes to cover their 401k and pension shortfalls.

  45. Anonymous says:

    I’m 47 and my parents, who are in their 70′s are scared to death of the recession growing worse. They are worried that my sisters or I might need to move back home… That’s all they are afraid of, especially my dad, who said “there is no revolving door on the front of this house!” He used to tell me that when I was 17! None of us have lived at home since leaving for college, we are married, with grandkids! I have my own business and was sick with an upper respiratory infection last week. My dad asked why I didn’t go to work, that I needed to be responsible and earn my own way in life… He talks to us like he did when we were kids… I told him he’s just a few years from wearing diapers so he better me nice to us! I’ll go sponge off of my 20 something year old kids first! My parents are still weird after all of these years!

  46. trujunglist says:

    I’m at a situation now where I’d like to get a condo or something so I can stop paying rent, but I think I’m going to wait a bit and make sure my job is a bit more stable and the housing market is all the way down before I jump.
    I hate paying rent so much. It’s like throwing your money in the toilet. In a year or so I’ll probably be set to jump on a small loan and get away from that noise.

  47. HogwartsAlum says:

    Got a house and a job, but no savings. Got student loans coming due. Got a shitty car. My company just got bought out and so far everything’s good but you never know.

    I’m screwed, probably.

  48. Kevin says:

    Oh, I love it. 29 married with 2 kids and two cars already paid off. Paying down on the house and kicking ass with no CC debt.

    Clean living + healthy spending = good times

  49. grumpygirl says:

    Not a penny of my money goes back into the stock market until the weasels get those level 3 assets out into the open. Until that happens, no one should trust the value of what they’re buying. For all you know, half the companies your funds are invested in are on the verge of bankruptcy but you’d never know because the books aren’t telling the truth.

    The stock market will continue to correct (downwards) until the truth comes out. Most housing markets will continue to correct (downwards) until the median home price is 2.5-3x the median income of the area in question. Until these things happen, my money sits and waits.

  50. Erika Price says:

    Even though the economic situation makes me feel threatened, I am almost completely insulated from its deleterious effects. As an incoming graduate student with assured funding, I don’t have much to worry about losing. It’s a great time to opt out of having a house, or investments, or debt, or a real job.

    While I get to barricade myself out of the economic turmoil, I still get to reap its benefits. I love the cheap gas, lower food prices and growing culture of financial restraint. For the past three years I’ve lived as a fairly fiscally responsible, broke-as-hell undergraduate; now I’ll just do the same as a grad student. Sounds good to me.

    Of course, I can whistle dixie all I want; my grandparents still lost all their savings, pulled out of the market and only have enough cash to live off of for another few years if things don’t improve. And my working-stiff friends have no jobs. So I do see the disaster around me.