4 ms·
Well, if you're worth nothing you have nothing to lose, that's the way I see it.
by kirse 18y ago
Well, if you're worth nothing you have nothing to lose, that's the way I see it.
- mechanical_fish 18y agoThis is precisely correct. Not a joke at all. To first order, this is great for you. Stocks are going on sale. You want to do your saving immediately after the massive crash, not before. Of course, that's just the first-order analysis. The second-order problems are potentially, um, annoying: If the economy tanks you might not earn any money to save next year. And your joy at being able to invest in a bear market (because you've got plenty of time to wait for the recovery) might be dampened by the sight of your parents moving in with you to save money because their retirement fund just evaporated. (They don't have time to wait for a recovery.)
- netcan 18y agoI think that the better statement is 'volatility creates opportunities.' For example, depressed real estate markets can create high demand for rentals. You might be able to make money each month on a mortgaged property (a real novelty in Australia for example). And if rental demand is high, prices will probably eventually recover. The issue is that a recession by definition means most people are worse off.