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      12-05-2008, 09:58 PM   #40
stickypaws's Avatar

Drives: people crazy
Join Date: Mar 2008
Location: where you want to be

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Originally Posted by scheherazade View Post
We just need people to get used to things, so they can get over their discomfort, and start buying again. You need demand to pay people's salaries.
Saving is nice and all, but if everyone saves then we all lose more money in the long run via lost income.
Get a grip and start enjoying life, and in the mean time put some cash aside each month. This isn't rocket science. Balance your impatience versus your income. Elementary subtraction is the only skill you need to win at this game.
All very elementary for those who live on a paycheck. Simple.

But I just received my monthly statement yesterday and I have lost $12,917.71 for the month of November. That's money that no longer exists. It's gone. My real estate holdings (two houses) are worth a lot less than they were worth this time last year. That's money gone. It no longer exists. You want me to go out and buy stuff? When my value has diminished so much? When my assets are dwindling? These are real life assets disappearing, not just something written on paper.

Would you go out and spend, spend, spend if your employer decided to give you only 1/3 of your paycheck next time? And what if they said, "oh, and by the way, we're not sure but maybe next time we'll take out an additional 1/3."

Living on a paycheck and saving a little bit here and there is one thing, but if you have money tied up in various investment tools and you're watching it implode, that's something else all together. Why the hell do you think investors are pulling their money and stashing it away in cash? Why do you think bankers are doing the same and not lending? Do you think rich people have all their money sitting in little savings accounts? No, and the reason why they're rich is because they invest. But with everything imploding around them, they pull their investments and horde the cash. Simple.