mike...i agree with what you say in reference to home equity loans used for investment purposes....but the real number of refi's done by the average working man was not for buying tech stocks...more for consolidation of debt, or added capital expenditures.....
insofar as portfolio net worth declining, that too is true...but what is not considered is how much wealth was created from investing in the 90's, that wasn't left in the market....
inspite of cnbc and boards like si, the average persons involvement in equities is via pension/retirement plans and mutual funds....unlike many of these boards, they have a life that isn't focused on the market....
every quarter they may get a shock, but most view it as "found" money, due to employer contributions...
conversely how many who advocated shorting the market since 97 or 98, missed a huge run up.....you have to be flexible, and resolve yourself to be satisfied with what you have, not what you could of had.......
other then on these boards, i know not many who feel they aren't fortunate with what they have in their life....including the debt....just human nature, perhaps ignorance...but for the masses ignorance is bliss....and if you have lived through bad economic times, been unemployed, sacrificed to survive, then anything more looks mighty good!
it's the acts of the ignorant masses or fools as some refer them as, that makes this country and its economy very resilient...
thanks your comments
ed a. |
