Saturday, March 21, 2009

Riches to Rags Story

Ok, yeah. It's a depression.

See this video of a corporate CEO currently delivering pizza, courtesy of ABC News.

2 comments:

joshi said...

no its not yet a depression!

you need some capital to start up a hedge fund - the set up costs while you try and raise assets can easily run to half a million.

why on earth did the poor fellow give up a nice job and get into debt? my guess is greed ...

adamclyde said...

it's sad to watch, but I just can't help be annoyed with the guy. If someone has pulled in loads of dough (upwards of $750,000 annually) and are now deeply in debt, it speaks to the amazing depths of people's willful ignorance of personal responsibility and accountability. Banks and consumers both lived off of dreams of never-ending prosperity and completely threw out any principles of risk management (banks) and conservative living (consumers).

All this massive disruption I as part of the market's long overdue adjustment. We need this period of time to get people who completely forgot what it means to live within ones means to remember that again. And have this experience inform this and the next generation too. I have never heard of anyone who lived through the Great Depression ever live beyond their means again. This will hopefully have this same effect across the country.

Now, I realize that has it's own impacts on economic resurgence (as consumers around the country delever the entire economy stalls while people reduce debt and build savings). But in the end, this HAD to happen. Anyone who makes high 6-figures for any sustained period of time should never have to worry about making ends meat if they had lived within means, built savings and spent what they actually had, not what they dreamed of having.

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